MacRumors

With Apple having launched OS X Mountain Lion to the public today, reviews of the company's latest Mac operating system have begun pouring in. Many of the reviews are quite extensive, but we've selected a few choice excerpts to highlight general reaction to the release.

- John Siracusa, Ars Technica

The Mac is a platform in transition. In Lion, OS X began shedding the well-worn trappings of traditional desktop computing at an accelerated rate. This trend continues in Mountain Lion. Where Lion stumbled, Mountain Lion regroups and tries again—while still forging bravely ahead in other areas.

As the second major refinement-focused release, it's easy to view OS X 10.8 as "what 10.7 should have been." The flip side of this argument is that the real-world mileage we’ve all put on Lion has helped Apple make the right kinds of adjustments in Mountain Lion. If we'd had to wait for two years after 10.6 for the next major release of OS X, chances are good that the worst of the missteps in Lion would just be landing on our doorsteps today. I'll take 10.8, thanks.

- Jason Snell, Macworld

All told, I found Mountain Lion to be a stable, solid release. Even prerelease builds were far more stable than I’ve come to expect from OS X betas, leading me to wonder if Apple’s new annual schedule is leading to more careful incremental updates (with fewer bugs) rather than great leaps (with more, nastier bugs).

- Nilay Patel, The Verge

Ultimately, this is pretty easy: you should spend the $20 and upgrade to Mountain Lion, especially if you have a newer Mac. You’ll gain a handful of must-have features, and everything will get faster and smoother. I haven’t really missed Snow Leopard at all since upgrading, which is remarkable considering how much I disliked Lion.

- Brian Heater, Engadget

Taken as a whole, the features mark a fairly aggressive bid to fold the best of OS X and iOS into one product -- a strategy we first saw with the introduction of the Mac App Store on Snow Leopard, and with the arrival of Launchpad last year in Lion. [...]

That said, it seems time for Apple to make a bold new pronouncement on the desktop front. The company appears to have most of its resources invested in the mobile side -- and there's no question as to why: the iPhone and iPad have reinvigorated the company, making it a computing player on a scale that no one (save, perhaps, for Jobs himself) could have predicted a decade ago. Still, it might be hard for OS X users not to feel neglected -- many of the latest new features feel a bit like iOS hand-me-downs. When and if Apple rolls out a new operating system this time next year, hopefully we'll be seeing a very different side of Mac OS.

- Jim Dalrymple, The Loop

There will be tens of thousands of words published on Wednesday when Mountain Lion hits the Mac App Store, but let’s face it, what you really want to know is whether Mountain Lion is worth the upgrade. Let’s get that out of the way now — yes, it is definitely worth it.

Mountain Lion costs $19.99 and comes with more than 200 new features — that’s a bargain at twice the price.

- Jesus Diaz, Gizmodo

If Apple doesn't want Microsoft to steal their innovation crown with Windows 8 Metro, they urgently need a new vision that breaks with this unholy mix of obsolete 1980s user interface heritage and iOS full screen skeumorphism.

It feels like Apple has run out of ideas. Or worse, that Apple is too afraid to implement new concepts, fearing it will kill the company's golden goose. Too afraid to change the world once again, as Steve Jobs used to say, one desktop at a time.

- MG Siegler, TechCrunch

It must be said that Mountain Lion isn’t really all that different from Lion — hence, the variation of the name (even though mountain lions are technically cougars — insert joke here). But unlike the jump from Leopard to Snow Leopard, which focused on performance and tightening code rather than features, the jump from Lion to Mountain Lion does pack some new goodies. [..]

In a time when Microsoft is just about to upend their entire OS with their biggest change (and bet) yet in Windows 8, Apple has taken a much more refined approach. Perhaps they take some criticism for this, or perhaps they’re just being savvy. OS X remains a great OS, and sprinkled with some of the best elements of iOS, it still feels pretty fresh. Not bad for an eleven year old big cat.

Alongside OS X Mountain Lion 10.8, Apple has released the updated version of Safari to OS X Lion (10.7). It is available in OS X Lion's Software Update. According to Apple, the new Safari contains new features, including:

- Smart Search Field. Safari now has one field for typing both searches and web addresses.
- Offline Reading List. Safari saves entire webpages in your Reading List so you can catch up on your reading even when you don’t have an internet connection.
- Do Not Track. Safari can send the websites you visit a request not to track you online.
- Password pane. Manage your saved website logins with the new Password pane.
- Baidu. The leading Chinese search engine Baidu is now a built-in option for Chinese users.
For more information about Safari, please visit: http://support.apple.com/kb/HT5275

Safari 6 for OS X Lion also includes improvements to stability, compatibility, usability and security, including changes that:

- Make the swipe to navigate gesture work with PDFs.
- Restore the state of Reading List when Safari is launched.
- Fix an issue that affected full screen video in webpages that have positioned content.
- Restore the user's previous cookies after Private Browsing without requiring a Safari relaunch.

In line with yesterday's brief announcement that OS X Mountain Lion would debut today, Apple has officially launched its next-generation Mac operating system to the public. OS X Mountain Lion [Mac App Store] is priced at $19.99 and is available exclusively through the Mac App Store.

OS X Mountain Lion brings a number of new features and enhancements to the Mac, including improved iCloud integration with support for Notes and Reminders, iMessage support via the new Messages application, Notification Center, Power Nap updating during sleep, Dictation, enhanced sharing tools, Game Center, improved security with Gatekeeper, and more.

“People are going to love the new features in Mountain Lion and how easy it is to download and install from the Mac App Store,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “With iCloud integration, Mountain Lion is even easier to set up, and your important information stays up to date across all your devices so you can keep editing documents, taking notes, creating reminders, and continue conversations whether you started on a Mac, iPhone or iPad.”

For users looking to deploy server capabilities, Apple will also be releasing OS X Mountain Lion Server as a $19.99 add-on via the Mac App Store.

Update: Many users are reporting difficulties purchasing and downloading OS X Mountain Lion, undoubtedly due to heavy load on Apple's servers.

Update 2: OS X Server is now available.

Apple held its Q3 2012 financial results conference call this evening. We have posted a full transcript of the call.

From the call, Apple discusses their expectations for the next quarter which runs through July, August and September. In particular, Apple CFO Peter Oppenheimer expects gross margins to decline in the next quarter due to a "Fall transition". He was unwilling to provide more details on direct questioning:

A: "Fall transition" that I spoke about is driving most of the decline that we see sequentially in gross margin. Not something that we're going to talk about in any level of detail today. We could not be more confident in our new product pipeline.

Apple uses such terms as "Fall transition" to represent changes to their product lines. Lower expected gross margins could point to new products with lower prices. The obvious speculation would point to the much rumored smaller/cheaper 7.85" iPad. Whatever the "fall transition" is, Apple expects it to take place before the end of September in order for it to impact the next quarter.

Apple was also asked about the impact of rumors and speculation on their sales

Q: Rumor and speculation, how much does it hurt sales in the quarter?

A: There's a lot of speculation out there. It's difficult to sort out but I'm fairly convinced that there's an incredible anticipation out there for future products. As you would expect given what we've been able to deliver in the past. I think it's a reasonable amount.

And later...

Try very hard to keep our product roadmap secret and confidential. We go to extremes to do that. That, however, doesn't stop people from speculating or wondering and they'll never do that. The great thing about this country is that people can say what they think and so-forth. I'm not going to spend any energy trying to change that. I'm glad that people want the next thing. I'm super happy about it. There are obviously quite a few that want what we're doing now as well. I'm not going to put any energy into trying to get people to stop speculating. I don't think it would amount to anything.

Finally, Apple is still optimistic about the Apple TV, and continues to believe in it despite it being a comparably smaller market.

Q: Did you give an Apple TV number and updated thoughts?

A: Sold 1.3 million last quarter, up more than 170% year over year. Brings fiscal year to 4 million units. This is pretty incredible. Still at a level that we would call a "hobby" -- continue to pull the string to see where it takes us. Not one to keep around projects that we don't believe in. Lot of people here that believe in Apple TV. Continue to invest.

Q: Don't do hobbies to be hobbies -- do it to make something bigger?

A: We do it because we think it'll lead us somewhere. We'll see. 4 million isn't a small number and there are a lot of believers in it.

We have a full transcript available from the call.

In Apple's earnings press release issued just moments ago, Apple CEO Tim Cook officially announced that OS X Mountain Lion will indeed be launching tomorrow, July 25.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

OS X Mountain Lion will be priced at $19.99 and will be available via the Mac App Store.

Apple followed a similar tactic last year, announcing at the start of its July earnings conference call that OS X Lion would launch the following day.

Apple today announced financial results for the second calendar quarter and third fiscal quarter of 2012. For the quarter, Apple posted revenue of $35.0 billion and net quarterly profit of $8.8 billion, or $9.32 per diluted share, compared to revenue of $28.57 billion and net quarterly profit of $7.31 billion, or $7.79 per diluted share, in the year-ago quarter.

This will be considered a big "miss" for Apple, as it is dramatically weaker than what analysts were expecting. The company did beat its own guidance, however. Last quarter, Apple said it would make $34 billion in revenue and earnings of $8.67 per share.

Gross margin was 42.8 percent, compared to 41.7 percent in the year-ago quarter, and international sales accounted for 62 percent of the quarter's revenue. Apple's quarterly profit and revenue were both company records for the June quarter. Apple also declared a new quarterly dividend of $2.65 per share payable on August 16 to shareholders as of the close of trading on August 13.

Quarterly iPhone unit sales reached 26.0 million, up 28 percent from the year-ago quarter, and the company sold 17.0 million iPads, up 84 percent year-over-year. Apple sold 4.0 million Macintosh computers, a unit increase of 2 percent over the year-ago quarter. The company also sold 6.8 million iPods, representing a 10 percent unit decline year-over-year.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

Apple's guidance for the fourth quarter of fiscal 2012 includes expected revenue of $34 billion and earnings per diluted share of $7.65.

Apple will provide live streaming of its Q3 2012 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call Highlights

➜ Click here to read rest of article...

Philip Elmer-Dewitt has put together his list of analyst expectations ahead of Apple's quarterly earnings report this afternoon. The list includes estimates from 68 analysts: 34 "independent" and 34 "institutional" who work for large investment houses or research organizations.

As usual, the independents are much more bullish than the institutional analysts. The independent consensus expects earnings per share (EPS) of $12.31 on revenue of $41.49 billion. The institutional consensus is EPS of $10.33 on $37.21 billion in revenue. This is a 12% difference on revenue and a 19% difference on EPS.

Apple will announce its earnings for the third fiscal quarter of 2012 (second calendar quarter of 2012) and host a conference call regarding the release this afternoon at 5:00 PM Eastern / 2:00 PM Pacific. The earnings release itself typically comes in around 4:30 PM Eastern. MacRumors will have live coverage of the proceedings.

Last quarter the company earned $11.6 billion in profit on revenue of $39.2 billion. For the second fiscal quarter, Apple has issued guidance of $34 billion in revenue with profits of $8.68 per share. The company typically exceeds its guidance by a significant margin.

Bloomberg reports that Apple is taking an interesting step into security research publicity, agreeing to present at this week's Black Hat conference in Las Vegas for the first time in the conference's 15-year history.

While many major technology vendors have overcome their reluctance to making a public showing at the conference, Apple, now the world’s most valuable company, has had no problem snubbing a community whose aim is to unearth its vulnerabilities.

That will change Thursday when Dallas De Atley, manager of Apple’s platform security team, is scheduled to give a presentation on key security technologies within iOS, the operating system for iPhones and iPads.

The report notes that Apple's security researchers have attended the conference in past years, but the company has kept a low profile with its presence. Apple researchers were reportedly scheduled to give a panel presentation back in 2008, but the session was canceled once Apple's marketing team learned of the plans.

“Bottom line — no one at Apple speaks without marketing approval,” [Black Hat general manager Trey] Ford wrote in an e-mail. “Apple will be at Black Hat 2012, and marketing is on board.”

The annual Black Hat conference has been a popular venue for security researchers to release their findings on vulnerabilities in OS X, iOS and other platforms. Apple has sometimes moved very quickly to patch holes disclosed at the conference, such as in 2009 when Apple released iPhone OS 3.0.1 to address an SMS security vulnerability revealed at the conference just one day earlier, although the researchers had previously been in contact with Apple about the issue.

FOSS Patents' Florian Mueller reports that recently-filed court documents in the ongoing U.S. patent and design dispute between Apple and Samsung reveal that Apple is seeking a total of $2.5 billion from Samsung to cover alleged infringement by Samsung's mobile products. From the court filing:

Samsung has reaped billions of dollars in profits and caused Apple to lose hundreds of millions of dollars through its violation of Apple's intellectual property. Apple conservatively estimates that as of March 31, 2012, Samsung has been unjustly enriched by about [redacted; presumably $2 billion] and has additionally cost Apple about $500 million in lost profits. Apple also conservatively estimates that it is entitled to over $25 million in reasonable royalty damages on the proportionately small set of remaining sales for which it cannot obtain an award of Samsung's profits or Apple's own lost profits, for a combined total of $2.525 billion.

Mueller notes that Apple is not allowed to collect both royalties and profits from a single device, and thus focuses its claims on the $2 billion figure related to design infringement, as that tactic would allow Apple to request both lost profits of its own and unfairly earned profits by Samsung on those devices. In calculating the royalty rates it believes it is owed for Samsung's use of Apple's intellectual property, Apple arrived at the following figures:

These are the per-unit royalties that Apple calculated for its different intellectual property rights-in-suit:

- $2.02 for the "overscroll bounce" (or "rubber-banding") '318 patent
- $3.10 for the "scrolling API" '915 patent
- $2.02 for the "tap to zoom and navigate" '163 patent
- $24 for use of any of Apple's design patents or trade dress rights

On a separate note, Apple's filings also reveal its estimates of how much it should pay in royalties for Samsung's patents, which are related to 3G standards and are required to be licensed under fair and reasonable terms. While Samsung has been requesting a royalty rate of 2.4% on Apple's sales of 3G devices, Apple argues that the amount should only be one-half cent per unit based on Samsung's small share of essential 3G patents and a belief that the royalty should be calculated on the cost of the baseband processor rather than the entire device.

As part of the ongoing court case, Apple CEO Tim Cook met with Samsung CEO Choi Gee-sung back in late May, but the negotiations yielded little progress. Reuters reported yesterday that the two executives met again last week but that the sides remain far apart in their valuations of their respective intellectual property.

AT&T today announced financial results for the second quarter of 2012, revealing that the carrier activated 3.7 million iPhones during the quarter, down from 4.3 million in the previous quarter as customers begin to slow their purchases ahead of the next-generation iPhone launch.

Notably, AT&T's 3.7 million iPhone activations accounts for roughly 73% of the carriers 5.1 million total smartphone sales during the quarter, down slightly from last quarter's share. With smartphones now accounting for 77% of AT&T's total postpaid device sales, the iPhone represents approximately 55% of the carrier's total phone sales to contract customers, down slightly from last quarter's 60% share.

AT&T sold 5.1 million smartphones in the second quarter. Smartphones represented 77 percent of postpaid device sales. At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T's postpaid subscribers had smartphones, up from 49.9 percent, or 34.1 million, a year earlier. AT&T's ARPU for smartphones is twice that of non-smartphone subscribers, and about 88 percent of smartphone subscribers are on FamilyTalk® or business plans. Churn levels for these subscribers are significantly lower than for other postpaid subscribers. More than one-third of AT&T's postpaid smartphone customers use a 4G-capable device.

Android, iPhone and Windows device sales were supported by AT&T's 4G network. Only AT&T's 4G network lets iPhone 4S download three-times faster than any other U.S. carrier's network. In the quarter, the company activated 3.7 million iPhones, with 22 percent new to AT&T.

Although Verizon reported a 16% quarter-over-quarter drop in iPhone sales and AT&T's numbers reveal a similar 14% decline, the performances are generally being viewed as a positive for Apple, which will report its earnings after the close of trading today. Analysts were already expecting Apple's overall iPhone sales to decline this quarter ahead of the next iPhone launch, and with the company's domestic sales holding up relatively well and international sales likely still booming, the company is likely to post solid results for its primary revenue generator.

In line with a fresh report from KGI Securities analyst Ming-Chi Kuo claiming that Apple will be updating the iPod touch later this year with an "all-new" design using the same in-cell touch display technology rumored to be used in the next iPhone, Japanese blog Mac Otakara reports that Apple will also be moving the iPod touch to a 4-inch display from the current 3.5-inch display. Apple is otherwise said to be basing the iPod touch's internals on the iPhone 4S, although the case will include a "buffed aluminum" rear shell rather than the glass back of the iPhone 4S or the mirrored stainless steel of the current iPod touch.

According to asian source, new iPod touch (5th generation) will have 4 inch LCD which is the same size with coming iPhone 5.

CPU or other spec is considered to be same with iPhone 4S, and has different back-case design, which will be not mirror polished but buffed alminum one. And it seems to be prepared black and white color model.

The report's source also indicates that there is an additional hole in the lower portion of the rear shell, separate from the camera found on the current model. It is, however, currently unknown what the function of the hole will be.

KGI Securities analyst Ming-Chi Kuo today released a significant new report outlining his estimates of Apple's product launch schedule for the second half of this year, pointing to all-new iPod touch and iPod nano models as well as new iPhone and iPad mini models and tweaked internals for the full-size iPad.

Kuo's report also touches on the Mac side, reiterating his earlier claims that Apple will be launching its 13-inch Retina MacBook Pro in that timeframe. He believes, however, that impact from the launch will initially be muted amid tight supplies and consumer budgets that will likely prioritize purchases of new iPhone and iPad mini models.

We think consumers who initially planned to purchase the 13” MacBook Pro and Air will turn to the 13” Retina MacBook Pro instead because it has an attractive panel, its price is similar to MacBook Pro and it has a better balance between power consumption and form factor. However, as supply is limited due to panel and assembly yield rate issues, shipment of the 13” Retina MacBook Pro won’t be able to satisfy demand. And we think consumers’ budgets will transfer to new iOS products after Apple launches them, which suggests that overall MacBook shipments will not grow meaningfully on the 13” Retina MacBook Pro.

While early 13-inch Retina MacBook Pro sales may be modest, Kuo does believes that with Retina displays clearly being the future of Mac notebooks the stage will be set for explosive growth heading into 2013.

As for the iMac, Kuo believes that new Ivy Bridge-based iMacs have been delayed by screen lamination issues, with Apple's supply chain status suggesting it will be a tight schedule to meet an end of September launch for the updated models.

The chances of the new iMac debuting in September are slim. But, judging by the current supply chain situation, it could be rolled out by end-September. [...]

[Supply chain] shipments for Mac desktop models will be low due to inventory adjustment in July, and will see the most dramatic MoM rise in August as shipments for the new iMac begin.

Several other sources have claimed that Apple will be targeting an October launch for updated iMacs, although there has been disagreement over whether the new models will include Retina displays, which are almost certainly the most highly-anticipated feature in the product's future. Kuo's report does not address whether or not he believes the feature will be included in the next revision or held for a later update.

In addition to coverage of all-new iPod touch and iPod nano models in his report released earlier today, KGI Securities analyst Ming-Chi Kuo also offered more predictions about Apple's iOS device plans for the September-October timeframe. According to Kuo, Apple is looking to launch the next-generation iPhone in September, perhaps closer to the beginning of the month. But with component shortages and limited on-sale time during the quarter following an expected pullback from consumers in expectation of the launch, he predicts only a modest bump in unit sales over the second quarter's numbers.

iPhone 5 to debut in September. But due to in-cell touch panel and casing yield rate limits, ability to offset older models' shipments decrease will be moderate.

On the iPad front, Kuo is expecting the iPad mini to debut later in September following component ramping in August. He predicts sales of just 1.8 million units during the short time the device will be on sale during the third quarter, exploding to overtake the full-size iPad in the fourth quarter with an estimate of over 13 million units.

Interestingly, Kuo also claims that Apple will be tweaking the internals of the current full-size iPad around the same time, making changes to address thermal issues and reduce costs. Digitimes had previously claimed that Apple would be revamping the third-generation iPad later this year with a thinner enclosure, IGZO display, and new heat dissipation capabilities, but Kuo's sources indicate that the changes will be invisible to users.

Though shipments of iPad mini’s components will start in August, the new iPad line will end production, ready for transition to a modified New iPad line. As such, component shipments will drop in August as iPad mini’s components shipments growth will be offset. On a side note, the modified New iPad shares the same exterior as the original model, but contains modifications to correct its thermal dissipation problem and lower-cost components.

Overall, Kuo is predicting massive iPhone and iPad sales for the fourth quarter of 2012 once the new models have full quarters of sales to build upon. His estimates put total iPhone sales at over 55 million and iPad sales at nearly 24 million during the quarter, spurred in large part by momentum from the iPhone and iPad mini launches.