MacRumors

As usual, iFixit has been quick to dissect Apple's updated MacBook, offering an extensive gallery of photos documenting the process.

A few notes of interest:
- There is no external indicator of battery charge state.
- There is no infrared port, meaning that the new model is incompatible with Apple Remotes.
- The integrated battery offers only 9% more capacity than on previous models (60 watt-hours vs. 55), but Apple claims an increase in battery life to 7 hours from the previous 5 hours, suggesting that the new model is more energy efficient. The new battery is significantly lighter than in the previous generation, offering a power-to-weight ratio that is 23.5% better.
- The hard drive is more difficult to replace than on previous models, but certainly can be done.
- The apparently increased rigidity in the latest model appears to come the use of an aluminum sheet (covered with a rubberized coating on the exterior) for the bottom case and other structural supports within the body of the machine.
- The Bluetooth antenna is routed into the display housing, likely improving range compared to previous models that placed the antenna in the body of the machine above the optical drive.

iFixit has also put together a video montage of the teardown process.

In a brief note, TechCrunch reports that it has heard from multiple sources that Google is preparing to launch a music service that would appear to compete against Apple's iTunes Store.

Google will soon launch a music service, we've heard from multiple sources, and the company has spent the last several weeks securing content for the launch of the service from the major music labels. One source has referred to the new service as Google Audio.

It is unclear at this time whether the service would offer music downloads or streaming, or perhaps both. TechCrunch will offer more details as they become available.

Update: TechCrunch now reports that it has received an invitation to a media event launching the service scheduled for October 28th. The invitation suggests that Google is partnering with music services Lala and iLike on the project.

MediaMemo provides additional information, noting that the service will reportedly be called "One Box" and will be a search service offering users content previews and directing them to sites where music can be purchased, not a full-fledged iTunes Store competitor.

Sources describe the service, which will be called "One Box" as a refined set of answers for music queries. The idea: Punch in, say, "Madonna", and you'll be presented with one or more songs, which may be partial clips or full-length versions, then guided to other sites where you can purchase the music.

Several readers have pointed out that the user guide for Apple's just-announced Magic Mouse contains a reference to Mac OS X 10.6.2, which is yet to be released.

To use your Apple Magic Mouse and its full range of features, update your Mac to Mac OS X version 10.5.8 or later and install the Wireless Mouse Software Update 1.0; or update to Mac OS X version 10.6.2 or later.

While OS X 10.6.2 is not required for the Magic Mouse to function, users running OS X 10.5.8 through OS X 10.6.1 will have to install a separate software update to enable support for the new device. The mention of OS X 10.6.2 suggests that Apple plans or at least did plan for the update to be released to consumers around the product launch.

Apple has seeded three builds of OS X 10.6.2 to developers, with the most recent having been delivered last Friday. The update notably addresses an issue with guest accounts that has resulted in some users losing all data from their regular user accounts.

Apple's new product releases earlier today have generated a lot of excitement and analysis, as well as comments from those who have managed to get their hands on the new models, and here are some of the tidbits we've seen.

iMac
- In its hands-on review, Gizmodo highlights the fact that the expanded chassis compared to the previous 20-inch and 24-inch models allowed Apple to double the number of RAM slots to four, allowing the new iMac to accept up to 16 GB of RAM.
- Gizmodo also notes that the larger chassis allowed Apple to upgrade the audio performance on the new models, yielding a "noticeable difference".
- The use of quad-core Intel Core i5 and i7 processors at the high end of the 27-inch model marks Apple's first use of desktop class processors in its "thin" iMac designs. Apple has traditionally used mobile processors in its iMac line for their lower thermal output, but the large chassis of the 27-inch model apparently allows for sufficient ventilation to permit the use of desktop processors.
- The 27-inch iMac supports video input via its DisplayPort connector, allowing the machine to be used as a display for external sources.

- The 27-inch iMac is wall-mountable via an optional VESA adapter, but the 21.5-inch model is not.

MacBook
- Engadget was able to get its hands on the new MacBook and notes that it feels more solid than the previous model. Gizmodo notes, however, that the new design looks and feels "chubbier" than the previous model, despite identical thickness.
- The new MacBook comes with a MacBook Air-style MagSafe power connector with the cord exiting from the side of the connector rather than from straight-on.
- The new MacBook now utilizes Mini DisplayPort for video output as opposed to the Mini-DVI used on earlier models. It also loses the Firewire 400 port and swaps in a combined audio in/out port for the separate ports present on its predecessor.

Overall Notes
- A report from French site Mac4Ever late last month was nearly dead-on in its claims, correctly pegging the inclusion of quad-core processors and an SD card slot in the new iMac, as well as the multi-touch Magic Mouse and the aluminum Apple Remote all announced today.

While the big news today was Apple's release of new iMacs, a new Magic Mouse, updated Mac minis, and a refreshed MacBook, Apple also quietly updated several other hardware products.

Apple today introduced a new aluminum Apple Remote priced at $19 and shipping in 2-4 weeks. Compatible with any Mac made since 2005 with an infrared port, the new remote offers a circular navigation wheel and separate menu and play/pause buttons. The remote is also compatible with the iPhone and iPods when using an iPod Universal Dock.

Apple also updated its AirPort Extreme and Time Capsule models today. The new models reportedly offer up to 50% better wireless performance and 25% better range than the previous models due to a revised antenna design. The new Time Capsule also offer up to 60% faster Time Machine backups than on earlier models when using Mac OS X Snow Leopard.

Apple today updated its Mac mini, offering spec bumps to its existing $599 and $799 models and adding a new $999 server model.

Apple today also announced that the Mac mini, the world's most energy efficient desktop, is now faster, offers more storage and comes standard with double the memory. Starting at $599, the entry level Mac mini features a faster 2.26 GHz Intel Core 2 Duo processor and 2GB of DDR3 1066 MHz memory, a 160GB hard drive, five USB 2.0 ports, FireWire 800, NVIDIA GeForce 9400M integrated graphics and a SuperDrive. The $799 Mac mini features a 2.53 GHz Intel Core 2 Duo processor, 4GB of memory and a larger 320GB hard drive. Apple now offers a $999 Mac mini that is specially configured with Mac OS X Snow Leopard Server. Mac mini with Snow Leopard Server features two 500GB hard drives for a total of 1TB of server storage in the tiny 6.5-inch square by 2-inch tall Mac mini enclosure.

The server model runs Mac OS X Snow Leopard Server and replaces the Mac mini's usual optical drive with a second 2.5-inch hard drive, allowing for the 1 TB total hard drive capacity.

As rumored, Apple updated the MacBook line with a new durable polycarbonate unibody design with LED-backlit display, glass multi-touch trackpad and a 7 hour battery life.

"The new MacBook includes many of the great features found on the innovative MacBook Pro, such as an LED-backlit display, glass Multi-Touch trackpad and built-in long-life battery," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "With the only lineup of notebooks all featuring unibody enclosures, LED-backlit displays and long-life battery technology, there's never been a better time to switch to a Mac."

The new design includes a non-skid bottom surface, and weighs 4.7 pounds. It contains a 2.26 GHz Core 2 Duo processor, 2 GB of RAM, 250GB HD and NVIDIA GeForce 9400M integrated graphics card. The new built-in battery can be replaced by Apple for $129.

The new MacBook is available immediately for the price of $999.

Apple introduced a new multi-touch mouse today called "Magic Mouse". The mouse uses the same multi-touch technology found in the iPhone, iPod Touch, and Mac notebook trackpads. The entire surface of the mouse is a seamless multi-touch surface.

The new mouse comes standard with the new iMacs introduced today and is also available separately for $69.

"Apple is the Multi-Touch leader, pioneering the use of this innovative technology in iPhone, iPod touch and Mac notebook trackpads," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "Apple's Multi-Touch technology allows us to offer an easy to use mouse in a simple and elegant design."

The gesture commands allow users to scroll through documents, pan across images, or swipe to move forward or backward through web pages or photos. It is said to work for both left and right handed users and gesture commands can be configured in the System Preferences. Magic Mouse is Bluetooth wireless enabled and will be available at the end of October.

Apple today announced updated iMac models carrying LED-based 16:9 displays in 21.5-inch and 27-inch sizes.

Apple today unveiled an all new iMac line featuring brilliant LED-backlit 21.5 and 27-inch widescreen displays in a new edge-to-edge glass design and seamless all aluminum enclosure. The new iMac line, starting at $1,199, is the fastest ever with Intel Core 2 Duo processors starting at 3.06 GHz, and Core i5 and i7 quad-core processors for up to twice the performance. Every new iMac ships with a wireless keyboard and the all new wireless Magic Mouse, the world's first mouse with Multi-Touch technology pioneered by Apple on the iPhone, iPod touch and Mac notebook trackpad.

The 21.5-inch model, which begins at $1,199 and carries a 1920x1080 display, offers Intel Core 2 Duo processor options running at 3.06 GHz or 3.33 GHz and NVIDIA GeForce 9400M or ATI Radeon 4670 graphics card options.

Pricing on the 27-inch model, which carries a 2560x1440 display, begins at $1,699. In addition to the same processor options found on the smaller model, users can also select from a 2.66 GHz quad-core Intel Core i5 or 2.8 GHz quad-core Intel Core i7 processor, although machines carrying those higher-end processors will not ship until November.

All new iMac models feature an SD card slot and ship standard with a wireless keyboard and the new Multi-Touch Magic Mouse also unveiled today.

Even before Apple has officially updated its online site with new hardware models, BusinessWeek has posted a description of the updates, which include redesigned 21.5-inch and 27-inch iMacs with LED displays, a redesigned polycarbonate MacBook, and an updated Mac mini with a server option.

More details forthcoming...

Update:

- MacBook Updated with LED Display, Multi-Touch, 7 Hour Battery
- Apple Updates Mac Mini and Adds Server Option
- Apple Introduces Magic Mouse - A Multi-Touch Mouse
- Apple Releases Updated iMac Models With 21.5- and 27-Inch LED Screens

AppleInsider notes a forum post from a source who has provided accurate information to both AppleInsider and MacRumors in the past claiming forthcoming product introductions from Apple. Apple's online stores are currently offline for updates.

The claimed introductions so far include three models of the Mac mini with one lacking an optical disc drive, a 21.5" iMac possibly carrying a widescreen 16:9 display, and updated AirPort Extreme and Time Capsule models.

MC207LL/A - K84 BEST BTR- USA
MC238LL/A - MAC MINI 2.26/2x1GB/160/SD/AP/BT-USA
MC239LL/A- MAC MINI 2.53/2x2GB/320GB/SD/AP/BT-USA
MC340LL/A - AIRPORT EXTREME (SIM DUALBAND) - USA
MC343LL/A - TIME CAPSULE 1TB (SIM DUALBAND) -USA
MC344LL/A - TIME CAPSULE 2TB (SIM DUALBAND) - USA
MC408LL/A - MAC MINI 2.53/2x2GB/1TB/NO ODD/AP-BT-USA
MC413LL/A - IMAC 21.5"/3.06/2x2GB/1TB/4670-256MB-USA
MC434LL/A - APPLE VESA MOUNT ADAPTER
MC461LL/A - MACBOOK 60W MAGSAFE POWER ADAPTER - USA

The U.S. Federal Communications Commission yesterday posted documents apparently related to updated AirPort Extreme base stations.

Update: MacRumors has received unconfirmed word that the "MC207LL/A" product is a MacBook running at 2.26 GHz with a 250 GB hard drive and 2 GB of 1066 MHz DDR3 RAM.

Engadget reports that filings have appeared on the website of the U.S. Federal Communications Commission (FCC) regarding what appear to be updated AirPort Wi-Fi base stations. Little is known about the new units, as Apple has requested that such materials as photos and the user manual be considered confidential for the time being.

The FCC did let one Apple product through to its online database tonight, although nothing that'll excite you quite like magical mice or revved up iMacs. Instead we're looking at models A1354 and A1355, a pair of 802.11 a/b/g/n 3x3 access points with the exact same, nondescript label picture that indicates some heft to the unit.

Similar filings regarding yet-to-be-released keyboard and mouse models appeared on the FCC's site earlier this month.

Rumors of numerous possible product announcements today have been generating excitement in the Apple community in the wake of yesterday's record-breaking earnings report, and online Apple stores around the world are currently down for maintenance and possible updates.

With numerous reports in recent weeks of new hardware releases from Apple and low stocks of a number of current-generation models, Apple watchers have been waiting on edge for new products to make their appearance. Attention has naturally focused on Tuesdays, a frequent day of the week for Apple to release new products, so speculation has been on the increase again today.

Earlier today, Newsweek's Dan Lyons issued a teaser post on his "Fake Steve Jobs" blog claiming that Apple is planning a product release tomorrow and poking fun at Daring Fireball's John Gruber, who has occasionally had accurate inside information just prior to product announcements.

Can't tell you what, obviously. But there's something brewing. Gruber doesn't know about it, but the people we care about are being briefed in advance. Stay close to your Mac or iPhone, and have your credit card ready.

Gruber later responded with a brief post carrying a very lengthy headline listing a multitude of new products possibly on the table for release tomorrow:

- Redesigned plastic MacBooks
- Redesigned "impressive" iMacs
- Mac mini updates, including one based on Mac OS X Server
- Multi-touch "Magic Mouse"
- A multi-touch "trackpad gadget" for desktop Macs

MacRumors has similarly heard whispers over the past few days of new iMacs, MacBooks, and possibly Mac minis scheduled for release tomorrow, but we have been unable to confirm any of the reports.

Apple today announced financial results for the fourth fiscal quarter (third calendar quarter) of 2009. Apple posted revenue of $9.87 billion and net quarterly profit of $1.67 billion, or $1.82 per diluted share, compared to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, compared to 34.7 percent in the year-ago quarter, and international sales accounted for 46 percent of the quarter's revenue. The numbers represent the most profitable quarter in Apple's history and include record-breaking Mac and iPhone quarterly sales.

Using non-GAAP data, which eliminates subscription-based accounting for the iPhone and Apple TV, Apple would have had $12.25 billion revenue and $2.85 billion of net income. The subscription-based accounting used for Apple's official results parcels out income from iPhone and Apple TV sales over a 24-month period from the date of sale, whereas the non-GAAP results count the entire revenue from these sales in the quarter they were made.

Apple shipped 3.05 million Macintosh computers during the quarter, a unit increase of 17 percent over the year-ago quarter. The company also sold 10.2 million iPods during the quarter, representing 8 percent unit decline over the year-ago quarter. Quarterly iPhone unit sales reached 7.4 million, up 7 percent from the year-ago quarter.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Steve Jobs, Apple's CEO. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

Apple's guidance for the first quarter of fiscal 2010 includes expected revenue of $11.3 billion to $11.6 billion and earnings per diluted share of $1.70 to $1.78.

Apple will provide live streaming of its Q4 2009 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call Notes- CFO Peter Oppenheimer, COO Tim Cook, and Treasurer Gary Wipfler present
- Thrilled with record-breaking results, particularly given economic conditions
- Second-highest revenue ever, highest profit ever
- Macs: Record Mac sales by over 440,000
- Sales growing faster than overall market in 19 of last 20 quarters
- Portable sales up 35% year over year, 74% of Mac product mix
- Back to school performance strong: highest sales ever for U.S. education segment
- Response to Snow Leopard has been tremendous
- Total iPod sales down slightly, but 50% of iPod customers buying first iPod
- iPod touch sales up 100% year-over-year
- MP3 player market share still over 70%
- Strong sales at iTunes Store, customers loving iTunes 9
- iPhone sales: almost 7.4 million in quarter, a new record
- Pleased that iPhone tops J.D. Power business and consumer satisfaction surveys
- iPhone in China begins later this month, great opportunity
- Expanding carrier relationships in U.K. and Canada
- Retail stores: highest revenue, margin, and Mac sales ever
- Retail store revenue $1.87 billion, up from $1.72 billion
- 50% of retail store sales to first-time Mac owners
- Opened or remodeled ~100 stores over the past year
- Total gross margin up to 36.2%: Due to solid Snow Leopard sales, lower iPod transition costs than expected, smaller than expected component costs rise
- Cash and short-term marketable securities total $34 billion
- New accounting standards will allow adjusting revenue recognition for iPhone
- Only the value of the future software updates will be deferred, not entire hardware amount
- Don't yet know what portion of revenue will be able to be immediately recognized
- Must begin new accounting by first quarter of fiscal 2011, but is a complicated transition and we are not prepared to adjust our reporting standards yet
- Thrilled with results: For the 2009 fiscal year, $36.5 billion revenue, $5.7 billion profit
- Looking forward to new products in 2010

Q&A

Q: Factors involved in guidance for next quarter. Why is sequential jump so far below previous years? Why gross margin low?
A: Gross margin will decline for the following reasons: 1) New products have lower gross margins, with greater value to customers, 2) More lower-margin iPod sales in holiday quarter, 3) More air freight costs, 4) Higher component costs.

Q: Channel inventory for iPhone? Any supply constraints?
A: iPhone 3GS was low in inventory in most countries, did improve markedly in September and balance reached in most countries by September or early October. Have 2.4 million units in channel, up 585,000 from previous quarter. We'd like to have had more.

Q: Any thoughts on China iPhone expectations?
A: Thrilled to be launching on October 30th. About 1,000 points of sale, and will expand. Prices and plans already announced, with a wide range, including free phones at high plan price points. There were a lot of 2G and 3G iPhones that went into China, so there's obviously a large market there. No predictions on sales volumes though.

Q: Any thoughts on the economy?
A: We focus on Apple, and leave everything else to economists.

Q: How does iPhone pricing changes in countries that go from exclusive to non-exclusive?
A: Pricing is confidential, but we don't expect wholesale price changes when shifting to non-exclusive, although final customer pricing may changes.

Q: Forecasts of seasonality in iPhone sales? Why is tax rate projected to increase?
A: Very few September-to-December quarters to look at for the iPhone, so difficult to say. We're new at this. We've been surprised by iPhone 3GS demand. 64 countries right now, with plans for a few more: China, hopefully Korea, new carriers in UK and Canada. Tax rate was lower than expected this quarter due to high foreign sales. We expect it to come back in line with usual rates.

Q: Increased competitive intensity for iPhone in the holiday season...how do you maintain momentum and differentiation?
A: We feel great with how we concluded the year. Almost 21 million iPhones total for fiscal year. 85,000 apps in the App Store. Strong product pipeline. We feel very confident. People are still trying to catch up to the original iPhone, and we've long since moved past that.

Q: Mix of iPhone 3GS versus 3G?
A: Demand for 3GS did exceed expectations, so we did adjust our component orders accordingly. Obviously an intense appetite for Apple's latest technology.

Q: Mac business channel inventory and product mix?
A: Last quarter was the "quarter of the portable", up 35% over year-ago quarter. A result of the new line-up introduced in June, strong back-to-school sales, and Snow Leopard push. Channel inventory around 3-4 weeks, similar to beginning of quarter. Inventory changed less than 15,000 units over the course of the quarter.

Q: Snow Leopard installed base?
A: Snow Leopard upgrades were more than double those of Leopard over the first five weeks. We were pleasantly surprised.

Q: Any comments on long-term gross margin trend?
A: For the December quarter, we're guiding to about 34%. Don't want to forecast further out than that. Component costs are rising. We're committed to cutting-edge technology at price points our competitors can't match.

Q: If wholesale iPhone prices between exclusive and non-exclusive arrangements are the same, what are the benefits of iPhone exclusive agreements?
A: Level of innovation is easier with single carriers in some cases. Visual voicemail is an example. Also, exclusive carriers can be more motivated to make certain changes and enhancements to support the devices.

Q: Thoughts on retail store initiatives? International growth?
A: Strong results from remodeled stores...72 stores were remodeled this fiscal year and customers like the improvements. International stores seeing excellent performance.

Q: Will research and development costs rise due to expected 2010 product introductions?
A: Don't want to say too much. We've been investing in our future right along and have managed operating costs very well. We're being careful with money, making good choices, but continuing to invest confidently.

Q: Very strong average selling prices (ASPs) in iPhone and Mac. Usually down in this quarter due to back-to-school promos, so what's going on?
A: iPhone ASP just over $600 comes from high sales of 3GS and rebalancing channel inventory to support that demand. On Mac side, ASPs were up on the portables side. Very strong sales of the MacBook Pro line. Best back-to-school sales ever. Sequentially a small benefit to performance of the U.S. dollar as well.

Q: iPhone supply issues due simply to supply and demand or also component constraints? More air freight costs?
A: Demand outstripped supply, so that was the primary driver. That's a nice problem to have. But because of that, it did create some component shortages. Silicon is usually hardest to come by, but we were able to solve the bulk of these issues. Air freight issues not necessarily due to iPhone, but due to rushing products for holiday seasonality. Can't be specific about the products driving the increased cost this year though.

Q: Mac retail points of sale and performance?
A: Just under 13,000 worldwide channel outlets. Mac grew much stronger internationally than domestically this quarter, particularly in Europe. Spain very strong, Germany, France, Switzerland, Italy 30-40+% growth.

Q: Any more details on capital expenditures?
A: In fiscal, we spent a little under $400 million on retail stores, $1.1 billion in total. Spending capital on facilities, infrastructure, and manufacturing. We've not been terribly capital intensive.

Q: Mac unit sales expected to be flat sequentially?
A: We don't give product-specific forecasts, but September quarter saw 50,000 education units from the state of Maine and strong educational promotions in general. Also Snow Leopard, and with every new OS, there is some pent-up demand. Also, demand for the new portables got the quarter off to a strong start.

Q: Can you forecast what iPhone sales would have been if you had been able to meet demand?
A: Hard to say. We were short just about everywhere throughout much of the quarter, but it's tough to say what would have happened.

Q: Still on track for 80 countries for iPhone by end of year?
A: Over 80 for the iPhone 3G, and we're at 64 for the 3GS. We expect to be in over 80 for the 3GS by the end of the year.

Q: Any thoughts on consumer versus enterprise for iPhone? Effect of Exchange support in Snow Leopard on the Mac side in the enterprise?
A: Enterprise sales very strong for iPhone. iPhone being deployed or piloted in well over 50% of Fortune 100. Similar results in Europe and the Financial Times 100. Over 350 higher education institutions have approved iPhones for their faculty, staff, and students. Also happy with government sales. As for Snow Leopard, I don't have any stats, as it's still very early. It clearly makes it very simple for Windows users.

Q: Updates on large government agencies using iPhone?
A: No specific updates, but we're very happy.

Q: Any thoughts on Mac education sales? You've been cautious about state budget issues, so what drove sales?
A: Individual student sales really helped our sales. On the institutional side, we're still worried about state funding issues. Little stimulus funding happening. Institutional increase of 12% was due to the order from the state of Maine.

Q: Projected air freight increase: what's driving that?
A: I can't be more specific than working to move units into position for the holidays.

- End of Call