Editor’s Note: This is the TechSummit Rewind, a daily recap of the top technology headlines.
Apple reports Q3 2015 earnings
Apple has announced its Q3 2015 financial results, posting $49.6 billion in quarterly revenue and $10.7 billion in quarterly net profit ($1.85 per diluted share). That compares to the $37.4 billion in quarterly revenue and $7.7 billion in net profit ($1.28 per diluted share) in Q3 2014. Gross margin was 39.7 percent compared to 39.4 percent in the aforementioned quarter. International sales account for 64% of the quarter’s revenue.
Growth was fueled by record iPhone and Mac sales, services revenue, and the Apple Watch.
“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch. The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan, and watchOS 2 to customers in the fall.”
-Tim Cook, Apple CEO
“In the third quarter, our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45%. We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”
-Luca Maestri, Apple CFO
Apple is providing the following guidance for its Q4 2015:
- Revenue: $49-$51 billion
- Gross margin: 5%-39.5%
- Operating expenses: $5.85 billion-$5.95 billion
- Other income/Expense: $400 million
- Tax Rate: 23%
Apple’s board of directors has declared a $0.52 per share dividend, payable on August 13, 2015 to shareholders on record as of the close of trading on August 10th, 2015.
“The sales of the Watch did exceed our expectations. And they did so despite supply still trailing demand at the end of the quarter. To give you additional insight, through the end of the quarter, in fact that he Apple Watch sell through was higher than the comparable launch periods of the original iPhone or original iPad. We were able to do with having only 680 points of sale. As you probably know, as I had reviewed earlier, the online sales were so great at the beginning, we were not able to feed inventory to our stores until mid-June. And so those points of sale, pretty much, the overwhelming majority of the low number of sales were not there until the last two weeks of the quarter.
“And so as I look at all of these things, we feel really great about how we did. Now our objective for the quarter wasn’t primarily sales. Beyond the very good news on sales, we’re more excited about how the product is positioned for the long term because we’re starting a new category. And as I back up and look at this with 8,500 apps, we’ve already announced the next operating system watchOS 2. Even though the store layout was delayed, we learned a lot about the experience. Based on that experience, we’re now planning to expand our channel before the holiday, because we’re convinced that the Watch is going to be one of the top gifts of the holiday season.”
In China, the company saw 112% year-over-year revenue growth when factoring in Taiwan and Hong Kong.
Chinese revenue grew to $13.2 billion in the quarter, up from $6.2 billlion last year.
iPhone user growth shot up 87% in the Greater China region with Mac growth increasing 33%, according to Cook.
App Store revenues also more than doubled in the quarter, according to Cook. The company plans to add 40 additional stores in China over the next year, according to Maestri.
Apple sold 10.9 million iPads in Q3 2015, which is a 13% decline over the last quarter, and 19% compared to Q3 2014.
Microsoft reports Q4 2015 earnings
Microsoft has reported revenue of $22.2 billion, and adjusted earnings per share of $0.62, in Q4 2015.
That revenue figure is down five percent from the $23.382 billion it earned in Q4 2014, due to a slipping phone top line. In total, Microsoft lost $3.2 billion ($0.40 per share) in the quarter, compared to $4.6 billion in profit a year ago.
The company took a stiff charge in the quarter because of its writedown of Nokia’s assets. Using normal accounting methods, Microsoft had a $2.1 billion operating loss in the quarter.
The company closed its fiscal year with over $96 billion in cash and equivalents.
Google Maps adds Your Timeline view to show where you’ve been
Google Maps is gradually adding Your Timeline, a view to “remember and view the places you’ve been on a given day, month or year.”
Your Timeline lets you visualize your routines, see the trips you’ve taken, and get a glimpse of the places where you spend your waking hours. If you use Google Photos, you’ll also see the photos you take when viewing a specific day to help resurface memories.
Your Timeline is only visible to you, and you can control the locations you want to keep, meaning that you can delete a day or your entire history at any time. You can edit any place in Your Timeline, including removing a specific location or giving a frequented hangout a private name like “Mom’s House” or “My Favorite Running Spot.” This spot will then appear in Google Maps when you’re signed in.
Available on desktop and Android, you can access Your Timeline now if you’ve opted in to storing your location history with Google.
iOS 9 beta testers can no longer post app reviews
Apple has banned iOS 9 users from submitting app reviews with the latest version of the operating system’s beta released Tuesday.
Testers running iOS 9 beta 4 can see the iOS App Store as usual, but can no longer post reviews. Attempting to do so gives you this pop-up message:
“This feature isn’t available. You can’t write reviews while using a prerelease version of iOS.”
Google kills Streamus Chrome extension
Streamus, the Chrome extension that turns YouTube into a background audio player, has been killed by Google after a battle between Mountain View and its developer Sean Adnerson.
The extension allowed users to build a queue of songs and play them in the background.
Jet launches, plans comparison of Amazon prices on all product pages
Jet, a shopping site that launched Tuesday, promises shoppers “the lowest price on everything” by comparing its price with Amazon’s on all of its product pages.
“It’ll be very easy for customers to understand that savings means savings compared to Amazon. They’re clearly the dominant player, so they’re a great reference point.”
-Marc Lore, Jet CEO
About 90% of Jet’s product listings show the company’s rate compared with Amazon’s lowest price for the same item now, but the remaining 10 percent will be updated over the next two months.
When Amazon doesn’t have the lowest price, Jet will discount the product below the lowest price, but still show Amazon’s price for consistency, according to the company.
The Amazon prices also won’t factor Amazon Prime into play.
“If you have Prime, you’re not our target customer. You’re getting video, you’re getting faster shipping. It’s a completely different animal.”
Jet.com charges $50 a year for access to the “best price on more than 10 million products” from retailers like NewEgg and Barnes & Noble.
Shoppers will also be able to order products from third-party retailers that aren’t available on Jet through Jet Anything, according to Lore, allowing members to input links to products elsewhere on the Web and still get discounts.
Jet also applies additional discounts to orders if multiple items come from the same warehouse, or a single warehouse is located close to the shopper. Discounts are also applied if shoppers waive their right to return an item or pay with a debit card instead of credit.
Yahoo reports Q2 2015 earnings
Yahoo has unveiled its Q2 2015 results, which include $1.04 billion in revenue after discounting traffic costs – which is up 15% year-over-year, and earnings per share of $0.16.
The company’s gross revenue, before discounting for traffic acquisition costs came to $1.24 billion in the quarter.
“In addition to revenue outperformance, we reduced $30 million in sequential cash operating expenses driven by strategic headcount and footprint reductions, tight management of our discretionary costs, and the benefit from IP monetization. As we continued to reduce our workforce to fewer than 11,000 full-time employees over the last quarter, we have also continued to realign our resources as we become a more efficient business.”
-Ken Goldman, Yahoo CFO
Mobile revenue continued to grow for the Sunnyvale, CA-based company, which represented 22% of its overall revenue in the quarter, up from 16% in Q2 2014.
Yahoo generated $400 million in revenue in the quarter, compared with the $249M this time last year.
Tumblr saw over a billion users across devices with over 600M monthly active users on mobile in Q3, and its mobile user base was up over 14% year over year, according to Yahoo. Platform usage on mobile is also up nearly 70% compared to Q2 2014, according to Yahoo.