As people continue to work and learn from their homes, Apple's Mac and iPad sales during the holiday quarter have seen ongoing growth, with Apple reaching a new all-time quarterly revenue record for the Mac category thanks to 21 percent year-over-year growth.
During the first fiscal quarter of 2021 (fourth calendar quarter of 2020), Apple's Mac category brought in $8.7 billion, up from $7.2 billion in the year-ago quarter and up from the previous $7.4 billion quarterly record set in the first quarter of 2019. According to Apple CFO Luca Maestri, growth was driven by the new M1 Macs, which includes the MacBook Air, 13-inch MacBook Pro, and Mac mini.
Apple's iPad category earned $8.4 billion, up from $6 billion in the year-ago quarter, marking growth of 41 percent. According to Apple CEO Tim Cook, iPad and Mac sales were constrained during the quarter, which may have held back sales.
Apple's iPad and Mac sales are expected to continue to see strong growth with multiple refreshes in the works. There are updated iPads that are rumored to be coming in the spring, and Apple has some major updates coming for the iMac and the MacBook Pro that could see sales accelerate.
New iMac models are expected to see a major redesign with slimmer bezels and a look that's similar to the Pro Display XDR, while future MacBook models will have slimmer bezels, more ports, MagSafe charging capabilities, and no Touch Bar. All new Mac models coming this year are expected to feature faster Apple silicon chips.
Apple's growing iPad and Mac sales along with strong iPhone sales resulted in a record breaking quarter, with Apple earning $28.8 billion profit on $111.4 billion revenue.
Alongside today's earnings release that saw Apple share record numbers thanks to strong iPhone, iPad, Mac, and services sales, Apple CEO Tim Cook told Reuters that Apple now has an active installed base of 1.65 billion devices, up from 1.5 billion devices in the year-ago quarter.
Apple has also hit an iPhone milestone, reaching more than 1 billion active iPhones, up from 900 million in 2019.
Apple's total active installed base includes iPhone, iPod touch, iPad, Mac, Apple TV, and Apple Watch models in use around the world.
Apple today announced financial results for its first fiscal quarter of 2021, which corresponds to the fourth calendar quarter of 2020.
For the quarter, Apple posted revenue of $111.4 billion and net quarterly profit of $28.8 billion, or $1.68 per diluted share, compared to revenue of $91.8 billion and net quarterly profit of $22.2 billion, or $1.25 per diluted share, in the year-ago quarter.
As expected thanks largely to the later launch of the iPhone 12 series that pushed it entirely into the first fiscal quarter rather than the traditional end of the fourth quarter, this was the best quarter in Apple's history in terms of revenue and profit, topping the first fiscal quarter of 2020 and easily breaking through the $100 billion mark in revenue.
Gross margin for the quarter was 39.8 percent, compared to 38.4 percent in the year-ago quarter, with international sales accounting for 64 percent of revenue. Apple also declared an upcoming dividend payment of $0.205 per share, payable February 11 to shareholders of record as of February 8.
“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Tim Cook, Apple’s CEO. “We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”
As has been the case for the past several quarters, Apple is once again not issuing guidance for the current quarter ending in March, as considerable uncertainty surrounding the global health situation's impact remains.
Apple will provide live streaming of its fiscal Q1 2021 financial results conference call at 2:00 p.m. Pacific, and MacRumors will update this story with coverage of the conference call highlights.
Apple earnings call recap ahead...
1:38 pm: Apple's stock is currently down about 1% in after-hours trading, following a nearly 1% drop in regular trading today amid broader market declines.
1:44 pm: Apple CFO Luca Maestri: "Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices. These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time."
1:59 pm: The Q1 earnings call will likely take about an hour, opening with remarks from Apple CEO Tim Cook and CFO Luca Maestri. Then a question-and-answer session with market analysts.
2:02 pm: The call is beginning with standard disclosures about forward-looking statements.
2:04 pm: Tim starts by thanking the employees of Apple for working so hard, and is noting the all-time revenue records across numerous categories and geographies. "This result caps off the most challenging year any of us can remember."
2:05 pm: "We are doubly aware that the work ahead of all of us to navigate the end of this pandemic and to restore life... and to build back, with a sense of justice, is profound and urgent."
2:05 pm: Why we outperformed our expectations: We hit a new high watermark for installed devices at 1.6 billion devices worldwide.
2:06 pm: iPhone grew by 17 percent year over year, driven by strong demand for the iPhone 12 family. Active installed base of iPhone is more than 1 billion.
2:06 pm: Response has been enthusiastic even in light of COVID impact at retail locations. iPad and Mac grew by 41 and 21 percent respectively.
2:06 pm: Availability began for both iPad Air and first-gen M1Apple Silicon Macs. Demand has been very strong.
2:07 pm: Efforts to bring latest iPads and professional support to educators, students and parents. Educational districts and governments worldwide are continuing major deployments.
2:07 pm: Wearables, Home and Accessories grew by 30% including demand for Apple Watch and AirPods lineup, and HomePod mini. Records for each subgroup.
2:09 pm: Touting Fitness+, and the deep integration of hardware, software, and services. Delivered all-time quarterly services record of $15.8 billion. First quarter of Apple One bundle. Optimistic about where we're headed. App Store ecosystem is so important as individuals, families and businesses evolve and adapt to the COVID-19 pandemic. This quarter, we took a significant new step to help smaller developers continue to experiment, innovate and scale the latest great app ideas. Latest program reduces commission on goods and services to 15%.
2:10 pm: Tomorrow is international privacy day. We set new standards to users' right to privacy, not just for our products but to be the ripple in the pond to move the industry forward. The winter holiday season is always a busy time for us and our products. We had a record number of device activations during the last week of the quarter. We saw the highest volume of FaceTime calls ever this Christmas. As always, we could not have made so many holidays special without our talented Retail team. Set new Retail records driven by high performance at our online store.
2:11 pm: We are focused on how to help in a moment of great national need. Hope for healing, unity and progress begins with and depends on addressing the things that continue to wound us. In our communities, we see how every burden... falls heaviest on those who have always faced structural barriers to equality and opportunity. New commitments through $100 million racial equity and justice initiative.
2:12 pm: Will help support next generation of leaders in ML, app development to entrepreneurship and design. Apple Developer Academy in downtown Detroit. We want to accelerate the potential of the app economy here, knowing there is no shortage of good ideas here.
2:12 pm: Since inception of Apple Giving program, Apple employees have donated more than $600 million and volunteered 1.6 million hours.
2:13 pm: Ahead of schedule on multi-year commitment to invest $350 billion throughout the American economy. Much more to be done.
2:14 pm: It will take a society-wide effort across public and private sectors, as individuals and communities, every one of us, to determine that what's ahead of us is not just the end of a disease. At Apple we have every intention to be partners in this effort and we look forward to working with communities around the world to make this possible.
2:14 pm: Luca coming on now.
2:14 pm: Started Fiscal 2021 with exceptional business and financial performance.
2:15 pm: "We are thrilled with the ways our teams innovate and execute." $111.4 billion in revenue, up $20 billion or 21% from a year ago. Grew strong double-digits in each product categories with records in iPhone, Wearables/Home/Accessories, and Services, and Mac.
2:16 pm: Products revenue was $95.7 billion, up 21%. Unmatched loyalty of customers led 1.65 billion active devices.
2:16 pm: Services set record. New all-time records in most services categories and geographies.
2:16 pm: Company gross margin was 39.8%, up 160 bp sequentially. Leverage from higher sales and strong mix. Product gross margin was 31.5%. Services was 68.4 percent. Net income, diluted earnings per share and cash flow were all all-time records.
2:17 pm: iPhone revenue was up 17% year over year, with demand for iPhone 12 very strong.
2:17 pm: Active installed base of iPhones reached all-time high and surpassed 1 billion devices.
2:18 pm: Latest survey from 451 research indicates iPhone customer sat of 98% for iPhone 12 family.
2:18 pm: All-time revenue record for services, with all-time records in App Store, cloud services, music, AppleCare and payment services.
2:18 pm: TV+, Arcade, News+, Card, Fitness+, Apple One bundle are also contributing to services growth and add users content and features.
2:19 pm: Installed base growth has accelerated and is at all-time high across every category. Transacting and paid accounts on digital content stores reached all-time high, with paid accounts increasing double digits across each geographic segment. Paid subs continue to grow nicely. Exceeded 600 million paid subs before end of calendar 2020. December quarter, we added 35 million sequentially and have more than 620 million paid subs, up 140 million from year ago.
2:19 pm: Improve breadth and quality of services offerings, and adding new services that we think customers will love. Apple Music released biggest product update ever. Listen Now, all-new search, personal radio stations, and autoplay.
2:20 pm: Payment services, we expand coverage with 90% of stores accepting ApplePay.
2:20 pm: Wearables, Home and Accessories: wearables business is now size of Fortune 120 company. Apple Watch continues to extend its reach with nearly 75% of customers purchasing Apple Watch being new to the product.
2:21 pm: Mac December quarter record. Strong double-digit growth in each geographic segment.
2:21 pm: Strong demand for new MacBook Air, MacBook Pro and Mac mini, powered by M1 chip.
2:21 pm: iPad performance impressive, up 41%. Strong double digits in every geographic segment including all-time record in Japan.
2:21 pm: Both Mac and iPad are incredibly relevant products for customers in current working and learning environments.
2:22 pm: 93% customer sat for Mac and 94% for iPad.
2:22 pm: Half of those customers in the quarter were new to the product.
2:22 pm: Enterprise, seeing many businesses shifting technology in response to COVID. Businesses handing in hundreds of millions of desk phones.
2:23 pm: To cash position: Ended quarter with $196 billion in cash plus marketable securities. Retired $1 billion in maturing debt. Total debt of $112 billion. $84 billion in net cash. $30 billion returned to shareholders. $24 billion through open market repurchases of 200 million Apple shares.
2:25 pm: March quarter: Given continued uncertainty around the world, we will not be guiding to a specific revenue range. Some directional insights, assuming covid-related impacts do not worsen from our current assumptions. We believe growth will accelerate on a year-over-year basis and in aggregate follow typical seasonality on a sequential basis. Product category level... during March quarter last year, we saw elevated activity in digital services as lockdowns grew. Tougher year over year comparison there. Year over year growth in wearables will decelerate in Q1. Chasing demand on AirPods last year from Q1 to Q2. This year, we plan to decrease AirPods channel inventory as is typical after holiday quarter.
2:25 pm: OpEx between $10.7 and $10.9 billion. Tax rate around 17%. Board of directors declared cash dividend of $0.205 cents per share.
2:25 pm: Q&A beginning.
2:28 pm: Katy Huberty w Morgan Stanley: Congratulations on a really strong quarter. Gross margin was particularly strong vs outlook, can you talk about whether you recognize the full impact of weaker dollar given typical currency hedges and how are you thinking about headwinds and tailwinds on GM?
Luca: GM was strong, better than anticipated. Reason for that was strong leverage from higher sales and mix was strong. Both mix within products and services. That was only partially offset by cost. Launched many new products during the fall and that comes with new cost structures. FX standpoint, really at the GM level, FX didn't play a role. Neither sequentially nor year-over-year for December quarter. Partially because of hedges but also because some currencies are still weaker against the dollar than a year ago, specifically in emerging markets in Latin America, Russia, turkey, and so on. If dollar weakens, that can become a tailwind for us. At current rates we expect some level of benefit around 60-70bp for the March quarter.
2:30 pm: Q: Challenges with valuing Apple is limited visibility into the roadmap and any new categories that you might enter over time. Without commenting on given opportunities, can you talk about the framework that you use internally to evaluate new markets and what you believe will determine your success as you look to enter new markets?
A: Thanks for the question and not asking any specifics. The framework that we use is around "is this a product that we would want to use?" That's a pretty high bar. Is it a big enough market to be in? Unless it's an adjacency product then it's about customer experience. There's no set way that we're looking at it. No formula. But we're taking into account all of those things. The kind of things we love to work on are those where there's a requirement for hardware, software and service to come together. We believe that the magic really occurs at that intersection. I think that we have some really good opportunities out there and if you look at our current portfolio of products, we still have relatively low share in a number of cases in very big markets. We feel that we have really good upside there and really good upside in services area too, that we've been working on for quite some time. With 4-5 new services just coming online in the last year plus.
2:32 pm: Q: iPhone growth exceeded expectations even with late launch. You referenced strong mix, how does this change your view on March quarter, can you share some color?
A: iPhone was one of the major factors why we exceeded internal expectations, we had a fantastic product lineup and we knew that and it's been fantastic to see customer response to the four new models particularly the pro models, Pro and Pro Max. Done well on units and pricing because of strong mix, and we've had some level of supply constraint particularly on Pro and Pro Max. As you said, we launched these products in the middle of the quarter, two after two weeks and two after seven weeks. Steep ramp that went very well. Products are doing very well around the world, particularly in China. Phenomenal customer response. Also some level of pent-up demand for 5G iPhones given that the market is moving very quickly to 5G. Look ahead, very optimistic. We believe we can be in supply-demand balance for all the models during the quarter. And the product is doing very well all around the world.
2:33 pm: Q: Strength of installed base performance, can you help us think through switcher vs upgrader activity across recent quarters?
A: Look at this past quarter, this is early going but we saw both switchers and upgraders increase on a year-over-year basis and in fact we saw the largest number of upgraders that we've ever seen in a quarter. We were very thrilled about that.
2:36 pm: Q: Shannon Cross w Cross Research: What are you seeing in China, significant sequential growth but from iPhone and other categories, what are you seeing and how back to normal is the Chinese market?
A: China was more than an iPhone story. iPhone did do very well there and sort of like the world if you look at switchers and upgraders, we were up year over year in China and a record number of upgraders there in a quarter. Probably some portion of this was that people probably delayed purchasing in the previous quarter as rumors started appearing about an iPhone. 5G in China is well-established and the overwhelming majority of phones are 5G phones, so there was some level of anticipation for us delivering an iPhone with 5G. iPhone did extremely well. The other products did as well, we could not have turned in a performance like we did with only iPhone. iPad did extremely well, far beyond the company average. Mac was above the company average, wearables, so if you really look at it, we did really well across the board there. In terms of COVID, I think they're for last quarter, beyond COVID. In the recovery stage. This quarter there are different reports about cases in some places, and lockdowns occurring, but we have not seen that in our businesses yet. Those cases are much smaller than ones in other countries.
2:38 pm: Q: Services... this is one of the first times that you talked about Apple TV+, Arcade, the smaller services moving the needle. You had stores closed during the quarter and that typically affects AppleCare revenue but that was a record.
A: Two businesses during covid that have been impacted negatively, one is AppleCare. When stores are closed, it's tougher for customers to have that interaction with us and advertising which is in line with overall level of economic activity. For December, in-store traffic improved and AppleCare we grew — not as much as company average, but we grew in AppleCare. Set all-time record there in spite of the fact that we started closing stores in US and Western Europe. In total we were able to support more customers than past quarters. But sequential growth in advertising, too. Clearly the strength was in digital services. App Store, cloud, music. Those were the services that really delivered very strong performance and that's something that we've seen happen during the covid environment.
2:41 pm: Q: Can we probe a little bit more into iPhone? You talked about a drawdown in channel inventory last quarter. Are iPhones at normal levels exiting Q1 and should we be thinking about above-seasonal growth with fewer selling days in Q1 and should we be thinking about above seasonal growth looking into Q2?
A: On the December performance, this was a very different cycle because we launched at a different time than usual. Initial part of the quarter without the new phones and then with the new phones, we had channel fill that typically happens in the September quarter. At the end of the quarter, demand is very strong and we've been constrained. At end of December, we had level of iPhone channel inventory which is slightly below a year ago. We still had a level of supply constraint that we believe we'll solve during the March quarter. In terms of sequential change that we talked about during prepared remark, we talked about company average and we expect that sequential progression to be similar to typical seasonality that you've seen in past years. Last year was not typical because of COVID, but go back to 17/18/19, that's our typical progression. We mentioned a few categories where we have slightly more difficult compare. Draw your conclusions around the iPhone though.
2:45 pm: Q: Comment on growth and sources for growth, well over $300 billion in revenue. Do you still feel confident that Apple has organic growth opportunities and that you don't believe acquisitions are an important source of growth? As you look over the next five years, what is a realistic revenue growth rate for Apple going forward?
A: As you know, we give some color on current quarter but not beyond that. In terms of growth rates, so I'll punt that part of your question. If you look at the ingredients that we have at this point, we have the strongest hardware portfolio that we've ever had. We have a great product pipeline for both product and services. We're still attracting a fair number of switchers and upgraders. We just set all-time services record, and we have that install base to compound that with added services over the past year. As they grow and mature and will contribute even more to services. On wearables, we've brought this thing from $0 to Fortune 120 company which was no small feat. But I feel that we're in the early stages of those products. Look at our share in other products, iPhone or Mac or iPad, you find that the share numbers leave a fair amount of headroom for market share expansion and this is particularly the case in some of the emerging markets where we're proud of how we've done but there's a lot more headroom in those markets. India as an example, we doubled our business last quarter compared to year-ago quarter. But absolute level of business there is still quite low given the size of the opportunity. Other markets like that as well. The other thing from a market point of view, we've been on a multi-year effort in enterprise and have gained quite a bit of traction there. Some of the things in Luca's comments and we comment some on it each quarter. We're very optimistic on what we can do in that space. New things that we're not going to talk about that we think will contribute to the company as well just like other new things have contributed nicely in the past. We see lots of opportunity.
2:47 pm: Q: GM discussion... we haven't seen GM at this level since 2016. Can you step back, what has enabled this shift higher? What has enabled you to get there? Commodities, sourcing components, wondering about durability of GM at these levels?
A: When you grow like we grew, 21%, we have a certain level of fixed cost in product structure. High level of sales helps margin expansion. Probably the biggest factor to be honest. Across the board, in services, in every product category, we had a very strong mix of products. The iPhone, Pro and Pro Max, that's pretty much the case in every product category. Mix has been very good. Commodity environment is fairly benign. One thing not affecting us is FX. It hasn't been a tailwind yet, but at the same time it hasn't been a negative. FX for us has been a negative for 5-6 years, almost every quarter. That has changed and that obviously makes a difference.
2:49 pm: Q: Growth rates for Mac and iPad, how much of this is replacement cycle vs new folks coming into the ecosystem? What growth is more durable or predictable?
A: Look at switchers, new to Mac and new to iPad, these numbers are still worldwide about half of purchases. Install base is still expanding with new customers in it. That's true on both iPad and Mac. If you look on Mac, M1 gives us a new growth trajectory that we haven't had in the past. If Q1 is a good proxy, there's a lot of excitement to M1 based Macs. A lot more to do there, early days of two-year transition but we're excited with what we see so far. Best iPad lineup we've ever had. Others are using them as complementary to desktop rather than laptop replacement. 41% growth is phenomenal. Part is work from home and part is distance learning, but wouldn't underestimate how much of that is the product itself in iPad and Mac. Share in Mac is quite low, for the total personal computer market, so lots of headroom there.
2:51 pm: Q: iPhone sales in general, China and North America have more robust 5G infrastructure. What do you see for customer engagement and velocity for 5G in Europe where they haven't rolled up robust 5G? Is that impacting customer interest in the latest lineup?
A: Look at 5G rollout in Europe, it's true that Europe is not in the place of or nowhere close to China or the US. But there are other regions that 5G is very good including Korea as an example. The world I would describe is more of a patchwork quilt. There are places where there's excellent coverage, and places within a country that are very good but not from a nationwide point of view. Then there are places where it hasn't gotten started yet. Latin America is closer to the last one, lots of opportunity ahead of us there. Europe has 5G implementations but most of that growth is in front of us there.
2:52 pm: Q: Apple One has been around for a couple of months. Any metrics for conversion rates or services in the bundle that are driving adoption?
A: It's really too early to answer some of those questions. Just got started into the quarter in Q1 so less than a quarter on this right now. What we wanted to accomplish was making our service very easy to subscribe to. Customers told us they wanted to subscribe to several services or all of our services so we've made that very simple. It's clear from the early going that it's working but we've just gotten started on it.
2:53 pm: Q: Talk about search and advertising business. What do you think about long-term growth opportunities there and are there applications in the fundamental search tech that can be used elsewhere?
A: Search advertising is going well. There's lots of intent from search and we do it in a very private kind of manner, observing great privacy policies and so forth. I think people see that and are willing to try it out. We're growing nicely in that area, it's a part of the advertising area that Luca spoke of earlier.
2:55 pm: Q: In the March quarter, you typically see a bump due to gaming downloads during Chinese New Year. Will we see that this year?
A: Typically in China, March is strongest quarter for services because of Chinese New Year. Last year we saw more activity because the whole country went into lockdown for several weeks so that propensity for playing games continued more than a previous cycle. Expect to have a great quarter in China, but need to keep in mind the compare is going to be particularly challenging because of what happened a year ago.
2:57 pm: Q: Asking about iPhone ASP. Are you confident that you can continue to improve mix on iPhone going forward?
A: iPhone revenue grew 17%. That came from unit sales and mix in the December quarter. It's very early because we launched the new product only a few weeks ago, but what we've seen so far is a high level of interest for Pro models and we've worked very hard to ramp up supply. We've had some supply constraints in the December quarter and we think we can solve them during the March quarter. Mix has been very strong on iPhone.
2:58 pm: Q: Benefits to carrier actions with aggressive trade-ins on units or mix? What would be level of permanence to those actions to see if those subsidies were removed to be a headwind?
A: Subsidies always help. Anything that reduces the price to the customer is good for the customer and obviously good for the carrier and good for us as well. It's a win across the board. I believe that at least based on what I see right now that there will be continued to have competition in the market if you're talking about the US for customers as carriers work to get more customers to move to 5G. In outside the US, the subsidies are not used in all geographies and it really varies greatly by country. Some of them separate completely the handset and service, and in those areas we don't have subsidies.
3:01 pm: Q: Amazing how your company has pivoted and progressed through this uncertainty time in society. A lot of pushback we get on our view of Apple, everyone we know has an iPhone and the market seems saturated. But in India for example, you are much below. How should we think about your moves in India and you don't have full market share everywhere equally around the world.
A: Several markets, including India, where our share is quite low. It did improve from the year-ago quarter. Business roughly doubled over that period of time. We feel good about the trajectory. We have the online store there and the last quarter was the full quarter of the online store. That has gotten a great reaction to it and helped us achieve results that we got last quarter. Going in with retail in the future and we look to that to be another great initiative where we continue to develop the channel. Lots of things, not only in India, but several other markets that you might name where our share is lower than we'd like.
I would also say, even in the developed markets, when you look at our share, definitely not everybody has an iPhone. Not even close. We really don't have a significant share in any market. There's headroom left even in developed markets where you might hear that.
In an effort to diversify its supply chain and manufacture more products outside of China, Apple this year plans to ramp up production of iPhones, iPads, Macs, and other devices in India and Vietnam, according to a report from Nikkei Asia.
iPad production in Vietnam is set to start as early as the middle of 2021, and the shift will mark the first time that a large number of devices will be built outside of China.
At the same time, Apple is increasing iPhone production in India, and as soon as this quarter, factories in the country will begin manufacturing the new iPhone 12 models.
Production for smart speakers, earphones, and computers is increasing in Southeast Asia. Apple suppliers in Vietnam will expand production capacity for the HomePod mini, which is already being manufactured in the country, and some production of the Mac mini has been relocated to Malaysia. Apple last year also started assembling some of the AirPods Pro in Vietnam.
Late last year, reports suggested Apple was asking Foxconn to move iPad and MacBook assembly from China to Vietnam amid ongoing trade tensions between the U.S. and China, and Foxconn has now been granted a license to construct a $270 million plant in the northern Vietnamese province of Bac Giang.
Apple and other major tech companies have been aiming to reduce their dependence on China due to rising labor costs and trade tensions between the U.S. and China, plus the pandemic led to major supply chain issues that further sparked efforts to diversify.
Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
The ear cushions are available in all of the AirPods Max colors - silver, black, red, sky blue, and green - and are priced at $69. AirPods Max ear cushions attach to the ear cups magnetically and can be popped right off, so making a swap to a new color is simple.
When the AirPods Max launched, MacRumors mocked up all of the AirPods Max color combinations, so if you're wondering how a particular color might look with your AirPods Max, our color combos are worth checking out.
Apple's online store has listed the AirPods Max ear cushions since the AirPods Max launched, but until today, the cushions were not available for purchase. The store listing still says "coming soon," but the ear cushions are available. Ear cushion orders placed today will deliver for free on Monday, February 1, and Apple Store pickup is not yet available.
Apple today released a new update for Safari Technology Preview, the experimental browser Apple first introduced four years ago in March 2016. Apple designed the Safari Technology Preview to test features that may be introduced into future release versions of Safari.
Safari Technology Preview release 119 includes bug fixes and performance improvements for Web Inspector, Speech Recognition, CSS, Scrolling, JavaScript, Media, WebAssembly, Web Animations, Accessibility, and Web API.
The current Safari Technology Preview release is the built on the new Safari 14 update included in macOS Big Sur with support for Safari Web Extensions imported from other browsers, tab previews, password breach notifications, web authentication with Touch ID, and more.
The new Safari Technology Preview update is available for both macOS Catalina and macOS Big Sur, the newest version of the Mac operating system.
Apple's aim with Safari Technology Preview is to gather feedback from developers and users on its browser development process. Safari Technology Preview can run side-by-side with the existing Safari browser and while designed for developers, it does not require a developer account to download.
Apple yesterday released a new version of iCloud for Windows 10, and based on multiple reports and the update's release notes, it appears Apple is introducing an iCloud Passwords extension designed for Chrome, which will allow iCloud Keychain passwords to be used on Windows machines.
Image via The 8-Bit
As noted by The 8-Bit and a few other sources, the update adds support for an "iCloud Passwords Chrome extension." After installing version 12 of iCloud for Windows, there's a new "Passwords" section in the app with an iCloud Keychain logo.
When attempting to use the feature, though, the iCloud app prompts users to download a Chrome extension, but the extension is broken and clicking to install leads to a broken web page.
This is likely a bug that will be addressed in the near future, and it sounds like when it is functional, Windows users will be able to access their iCloud Keychain passwords on their Windows machines through the Chrome browser. It's not clear if Apple will offer this extension for Mac machines in the future as well, and it appears to be limited to Windows at this time.
Amazon has Apple's AirPods Max available to ship in 1-2 business days right now, only in the Silver color option. AirPods Max are priced at $549.00, and as of yet we haven't seen any noticeable discounts on the Bluetooth headphones.
Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
AirPods Max debuted last month as Apple's first over-ear headphones. Like the AirPods and the AirPods Pro, the AirPods Max are equipped with two Apple H1 chips that provide high quality sound thanks to the 10 cores that power computational audio capabilities.
Additionally, Silver and Space Gray models are available on B&H Photo, Verizon, and Best Buy. These retailers are placing delivery times on the AirPods Max sometime next week, compared to the March delivery times seen on Apple's website.
As a note for all AirPods Max stock, these headphones are known to disappear fast once stock is available. We'll update this article once stock is completely gone, but be aware that you may begin seeing delivery estimates slip, or stock disappear altogether, very soon.
AirPods Max feature Active Noise Cancellation technology and the same Transparency mode, Adaptive EQ, and spatial audio features that are in the AirPods Pro. If you're hunting for even more AirPods deals, we track sales for every model of the AirPods in our Best AirPods Deals guide.
Update:Verizon has Sky Blue, Space Gray, and Silver in stock right now. The Sky Blue option has a slightly delayed shipping estimate of February 11.
Update 1/29: We've updated this article to reflect the availability of the Silver AirPods Max on Amazon, now that the Space Gray option has seen shipping estimates slip to March.
Update 2 1/29: AirPods Max are temporarily available from Amazon in Sky Blue, Silver, Space Gray, and Pink with deliveries on February 1.
AirPods held a disproportionately large share of the global wireless headset market in 2020, according to a new report by Strategy Analytics.
With sales of over 300 million units, the True Wireless Stereo (TWS) Bluetooth headset sales market grew by almost 90 percent last year. Apple's AirPods own almost half of the entire market, with the rest being made up of a large number of companies with individually small shares.
In spite of Apple's dominance, Strategy Analytics notes that its lead is shrinking as competition intensifies:
"Apple maintained a commanding lead in the TWS segment in 2020, but its commanding share is shrinking as competition intensifies. Strong competition is expected from Xiaomi, Samsung, and Huawei in 2021," said Ken Hyers, Director at Strategy Analytics. "The TWS headset market is already hugely overcrowded and despite a strong sales outlook, there will inevitably be consolidation in the years ahead."
It is expected that there is still "plenty of potential in the broader Bluetooth headset market," due to low penetration and an install base that remains small. According to Ville-Petteri Ukonaho, Associate Director at Strategy Analytics, "less than one in ten people own a Bluetooth headset globally, so there is still significant room for growth." In addition to this, as vendors move away from bundling wired headsets with new smartphones, Strategy Analytics foresees considerable growth potential in the market.
Apple will soon require iPhone, iPad, and Apple TV app developers to request permission from users to collect their random advertising identifier (known as the "Identifier for Advertisers" or "IDFA"), which advertisers use to deliver personalized ads and track how effective their ad campaigns were. Specifically, users will be presented with a prompt to allow or deny tracking as necessary when opening apps on iOS 14, iPadOS 14, and tvOS 14, as part of Apple's App Tracking Transparency ("ATT") policy.
In response to this upcoming change, Google today announced that it will stop collecting IDFAs for the "handful" of its iOS apps that currently use it for advertising purposes once Apple's new policy goes into effect. As a result, Google said it will not need to show Apple's tracking permission prompt in its iOS apps.
In a blog post, Google said that app developers may see a "significant impact" to their Google ad revenue on iOS after Apple's new policy takes effect:
Apple's ATT changes will reduce visibility into key metrics that show how ads drive conversions (like app installs and sales) and will affect how advertisers value and bid on ad impressions. As such, app publishers may see a significant impact to their Google ad revenue on iOS after Apple’s ATT policies take effect. To help improve iOS monetization rates, we encourage developers to upgrade to version 7.64 of the Google Mobile Ads SDK for new features like SKAdNetwork support.
Google has a support document with more information on how developers can prepare.
Apple has also required developers to fill out a privacy label when submitting new apps and app updates to the App Store since December 8. Google added that it is "working hard to understand and comply with Apple's guidelines" for all of its apps in the App Store, and ensured that its iOS apps will be updated with privacy label information as necessary when new features or bug fixes are introduced. Many of Google's most prominent iOS apps have yet to display this privacy information, including the main Google app, YouTube, Gmail, Chrome, and others.
Facebook has criticized Apple's new policy, claiming that it will hurt small businesses who benefit from personalized advertising. In response, Apple said users deserve transparency and control. "We believe that this is a simple matter of standing up for our users," said Apple, adding that "users should know when their data is being collected and shared across other apps and websites — and they should have the choice to allow that or not."
Today we're tracking a collection of discounts on Apple's MacBook family, 21.5-inch and 27-inch iMacs, and ongoing low prices on iPad keyboards. These sales are located on Amazon and B&H Photo, with discounts automatically applied across the board, so you won't need any specific coupon codes to see discount prices.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
MacBook Pro
In terms of the 16-inch MacBook Pro, you can get the 512GB model for $2,099.00, down from $2,399.00 on Amazon this week. This isn't quite the lowest price that we've ever seen for this version of the MacBook Pro, but it is among the best online and the most consistent sale we see for it among the major Apple resellers online. It's being matched at B&H Photo as well.
Likewise, the 1TB 16-inch MacBook Pro is being discounted to $2,499.00, down from $2,799.00 on Amazon (matched at B&H Photo). Apple introduced this MacBook Pro in November 2019, and it has a large 16-inch Retina display, slimmer bezels than previous generations, an updated keyboard with a scissor mechanism instead of a butterfly mechanism, and AMD Radeon Pro 5000M Series graphics cards.
iMac
B&H Photo today introduced a new deal on the 27-inch iMac from Mid 2020 (3.3GHz 6-Core, 8GB RAM, 512GB SSD), discounting the computer to $1,799.00, from $1,999.00. This is now the best price that we've seen for this model of the 27-inch iMac. It's being matched at Amazon, but shipping is delayed into February.
This sale now joins a group of discounts that we saw emerge last week on a few 21.5-inch iMac models, which are still ongoing. You can get the Quad-Core 21.5-inch iMac (256GB) for $1,219.00, down from $1,299.00 at Amazon and B&H Photo, as well as the 6-Core 21.5-inch iMac (256GB) for $1,349.00, down from $1,499.00 at Amazon and B&H Photo.
iPad Keyboards
You can also get a few discounts on Apple's keyboards for the iPad Pro and iPad Air, including an ongoing best-ever deal on the Magic Keyboard for 11-inch iPad Pro at $199.00, down from $299.00. This is the lowest price that we've tracked to date for this Magic Keyboard, which can also be used with the fourth generation iPad Air.
Additionally, the Magic Keyboard for the 12.9-inch iPad Pro is on sale, but this discount isn't quite as steep. It's priced at $329.98, down from $349.00. Both versions of the Magic Keyboard provide a full keyboard with a trackpad, backlit keys, and a new floating cantilever design that lets you adjust the iPad Pro to find the best viewing angle.
Another keyboard that's on sale is the Smart Keyboard Folio for the 12.9-inch iPad Pro, priced at $149.00, down from $199.00. While a simpler alternative to the Magic Keyboard, this accessory still provides a full-size keyboard, front and back protection for the iPad Pro, and allows for a few convenient viewing angles.
Keep up with all of this week's best discounts on Apple products and related accessories in our dedicated Apple Deals roundup.
A case accessory from Cyrill, a sub-brand of Spigen, for Apple's long-rumored AirTags has been listed online for pre-order with a shipping date of "late October."
The storefront listing, spotted by iMore, is for a case accessory titled "Basic Leather - Black" and said to be "for AirTag." Listings for the same product in alternate colors have also been added to Amazon. The accessory is priced at $19.99 and the page lists a number of product features:
Stylish and classy vegan leather strap case perfect accessory for minimalist
Firm button clasp keeps your AirTag securely
Hang your AirTag on your bag, key, wallets, clutches with stylish gold clip-on carabiner
Wireless charging compatible.
CYRILL Basic Leather strap case for Apple AirTag (2020)
The AirTags' 2020 model year is an obvious error, as the product has yet to be released in early 2021. However, this may add credence to the rumor that AirTags were originally planned to launch in 2020 before being delayed until March 2021. Indeed, the "late October" note on the listing could be referring to October 2020, rather than October 2021, if it is as outdated as the model year suggests.
While it is difficult to learn much new information about the design of AirTags from the product listing, the images seem to meet the speculation of previous rumors that the AirTags will feature a slim disc-like design and a white front. The leather portion of the accessory also seems to be very similar to leaked images of an alleged Apple-designed AirTag keychain accessory from last year.
This is not the first time that third-party AirTags accessories have come to light. Earlier this month, images of Nomad's AirTags Keychain and AirTags Glasses Holder accessories leaked online. Apple does not generally provide accessory makers with product specifications or details ahead of launch, so the product renders that Spigen and Nomad created are more likely based on rumors and not representative of the final AirTags design.
AirTags are expected to work similarly to other item trackers such as Tile, allowing users to attach them to various items like cameras, wallets, keys, glasses, and more, to be able to locate them if they are misplaced. Rumors indicate AirTags will feature a built-in U1 ultra wideband chip for accurate indoor positioning information that will also allow for augmented reality-based tracking functionality.
There have been signs of AirTags since iOS 13, and despite a multitude of rumors suggesting Apple was heading for a 2020 launch, the elusive product has yet to emerge. Earlier this month, Apple analyst Ming-Chi Kuo said that Apple will release AirTags at some point in 2021, though he did not provide more specific information.
Today marks the 11th anniversary of Apple co-founder Steve Jobs unveiling the original iPad at the Yerba Buena Center for the Arts in San Francisco.
"iPad is our most advanced technology in a magical and revolutionary device at an unbelievable price," said Jobs, in a press release on January 27, 2010. "iPad creates and defines an entirely new category of devices that will connect users with their apps and content in a much more intimate, intuitive and fun way than ever before."
The original iPad featured a 9.7-inch display, a single-core Apple A4 chip, up to 64GB of storage, 256MB of RAM, up to 10 hours of battery life, a 30-pin dock connector, and a headphone jack. Notably, the original iPad did not have any cameras. Pricing started at $499 for the Wi-Fi model and $629 for the cellular model in the United States.
We've recapped some of the bigger milestones in iPad history below:
March 2011: iPad 2 unveiled with thinner and lighter design, dual-core A5 chip, front and rear cameras, and new white color option
March 2012: Third-generation iPad introduced with a Retina display, 4G LTE support, and 1080p video recording
October 2012: Fourth-generation iPad switched to a Lightning connector
October 2012: iPad mini introduced with a smaller 7.9-inch display
October 2013: iPad Air unveiled with a 64-bit A7 chip, thinner and lighter design, and slimmer bezels
October 2014: iPad Air 2 ushered in Touch ID and a fully-laminated Retina display
September 2015: iPad Pro introduced with a large 12.9-inch Retina display, Apple Pencil and Smart Keyboard support, A9X chip, and four speakers
March 2017: Fifth-generation iPad introduced as an entry-level device with a $329 starting price and the same 9.7-inch display size as the original iPad
June 2017: Second-generation iPad Pro gained a ProMotion refresh rate up to 120Hz
October 2018: Third-generation iPad Pro marked a major redesign with slimmer bezels, Face ID, and a USB-C connector
September 2019: Seventh-generation iPad went from a 9.7-inch to 10.2-inch display and gained full-sized Smart Keyboard support
March 2020: Fourth-generation iPad Pro gained a LiDAR Scanner for AR
September 2020: Fourth-generation iPad Air redesigned to look like iPad Pro
Apple executive emails revealed in the Epic Games vs. Apple lawsuit highlight how the company came to its conclusion to take a 30% cut on all App Store transactions in a way that ensured it wasn't "leaving money on the table."
One email thread from 2011, spotted by The Verge, features Apple services chief Eddy Cue discussing the commission that the company should charge providers for content subscriptions accessed via Apple TV (an App Store on the set-top box didn't exist at the time.) Apple execs considered charging a 40% one-time cut, a 30% one-time cut, a 30% ongoing fee, or individualized deals with different providers.
Apple's team eventually decided to require the same 30% fees as it does on the iTunes Store and the App Store. Another email also discusses how Apple should negotiate referrals, where Apple TV apps link out to a provider's website for customers to subscribe directly to the service.
One executive said they wanted to ensure they protected the 30% fee that had long been enshrined in the App Store, but stated they would remain open to other deal structures.
"I don't want to do any deals where we get less than 30%. That is what it is on the app store and we can't be making a different deal here. If that is not possible than I want a one-time bounty but we need to very careful here so this doesn't spillover to the app store," one exec wrote. (The emails are threaded such that it's hard to tell who is replying to whom.)
Overall, the email thread appears to suggest that discussions evolved extemporaneously amongst Apple executives when it came to provider fees during the early development of the Apple TV platform, with maximum profit the main concern.
Amid increasing scrutiny over its App Store practices, Apple in November announced the Small Business Program, which saw App Store fees slashed to just 15% for developers earning under one million dollars per calendar year. The App Store commission remains at 30% for developers making over one million dollars per year.
The program has since received praise from many developers, but some larger developers including Epic Games criticized the move, saying it undermines the App Store's rules. Epic Games is ineligible for the reduced commission since it exceeds the $1 million earnings threshold. Apple said the program will benefit the "vast majority" of App Store developers.
Apple's market share in India increased from 2% to 4% in the quarter that ended in December, based on data collated by research firms Counterpoint and Cybermedia.
As reported by TechCrunch, Apple shipped more than 1.5 million iPhone units in India in the quarter, up 100% year-on-year, making this its best quarter in the country to date.
According to the data, Apple managed to double its market share thanks to improved sales of the iPhone 11, iPhone XR, iPhone 12, and the 2020 iPhone SE. Overall, Apple shipped more than 3.2 million iPhone units in India in 2020, up 60% year-on-year.
The results follow several recent moves by Apple in the country, including the launch of a regional online store in September 2020 and a Diwali promotion in October that offered free AirPods with every iPhone 11 purchase.
Apple has historically struggled to be competitive in what is the world's second largest smartphone market, in part due to the premium price tags of its iPhone models versus the low cost of rival handsets from the likes of Xiaomi, Oppo, and Vivo that have swamped the market.
However, Apple has taken advantage of the Indian government's Made in India initiative to increase its regional manufacturing base, which has allowed it to save import duty costs and pass on the savings to customers by reducing prices on older generation iPhone models.
Local production of newer iPhone models is next on Apple's agenda, and Apple supplier Wistron recently began trial production of the iPhone 12 at a new facility near Bengaluru, with full production set to begin in mid-2021. The iPhone 12 would be the seventh iPhone model to be manufactured in India, but the first high-end device to do so.
Apple is also planning to open retail stores in India in the near future, all of which suggests its strategy in the country is headed in the right direction. Apple is due to report its earnings on Wednesday, so expect India to be a highlight.
Apple in the iOS 14.4 update released today introduced a feature that sends a warning notification when the camera on an Phone 12 model is unable to be verified as a new, genuine Apple camera.
To accompany that warning, Apple has shared a support document that highlights the importance of getting an iPhone repaired by a trained technician using genuine Apple parts, with warnings on what can happen when a non-Apple camera is used.
Apple says that if an iPhone camera needs replacement, it's important to use a certified technician because repairs done by non-certified technicians could result in improper function or issues with image quality. Safety is also a concern, according to Apple, as improper repairs could potentially leave loose parts that could lead to battery damage.
A non-genuine camera component can lead to compatibility or performance issues, with Apple warning of several potential things that could go wrong.
Camera does not focus correctly or images are not sharp
When using Portrait mode, the subject might not be in focus or only partially in focus
A 3rd-party app that uses the camera might freeze or quit unexpectedly
Real-time preview in 3rd-party apps might appear blank or might get stuck
The non-genuine camera notifications that Apple introduced in iOS 14 will show up on an iPhone 12, 12 Pro, 12 Pro Max, or 12 mini if one of these devices is repaired with a non-Apple camera component.
If such a repair is done, users will see a warning under Settings > General > About that says "Unable to verify this iPhone has a genuine Apple camera." The warning will also show up on the Lock screen for the first four days after a repair, and in the Settings app for 15 days.
Apple's warning will not affect the ability to use the iPhone or to access the camera, and the iPhone will remain fully functional.
Apple recommends that those in need of camera repairs get the iPhone camera replaced at an Apple Store, an Apple Authorized Service Provider, or through Apple's mail-in support. Independent Repair Providers are also able to offer genuine camera repair parts for out-of-warranty replacements.
This is not the first time that Apple has introduced warnings when repairs are made to an iPhone using non-genuine parts. There are similar warnings that show up when a non-verified display is used for a repair, and when a repair facility uses a non-genuine iPhone battery.
Apple today sent out email invitations to developers inviting them to join various events focused on specific iOS, iPadOS, and macOS features like widgets and App Clips.
A widget-centric event called "Building Great Widget Experiences" is set to take place on February 1, 2021, and will provide developers with opportunities to learn new techniques for creating useful widgets for their apps.
We'd like you to join us for Building Great Widget Experiences on Monday, February 1, 2021. This event will be conducted online.
Useful and delightful, widgets let you elevate key content from your app and display it where users can see it at a glance on iPhone, iPad, and Mac. They can also help users personalize their Home screens in unique ways. Join us for an in-depth look at building great widget experiences.
There's a separate event on Monday, February 15 titled "Bring Your iPad App to Mac," and another event called "Building Great App Clip Experiences" that's focused on the App Clips feature introduced in iOS 14.
Developers who have been invited to these sessions are able to ask Apple employees questions, much like the online events that Apple held last year for WWDC.
Invites are also going out for “Bring Your iPad Apps to the Mac” and “Building Great App Clip Experiences”.
— Simon B. Støvring (@simonbs) January 26, 2021
Apple occasionally hosts these special session events focused on different iOS and macOS features. Last year, for example, Apple hosted an event focused on accessibility features.
Apple today released iOS 14.4 and the HomePod 14.4 software, with these two updates introducing improved Handoff functionality between the HomePod mini and the iPhone 11 and iPhone 12 models. In our latest YouTube video, we tested out the new functionality to see just how it works.
The HomePod mini, the iPhone 11 models, and the iPhone 12 models all have Apple's U1 Ultra Wideband chip, which allows the devices to more precisely locate and keep track of one another thanks to much improved indoor positioning and location capabilities.
When introducing the HomePod mini with U1 chip back in October, Apple explained that it would be used for more advanced Handoff features, with that technology now available. The HomePod and HomePod mini have always been capable of transferring songs from the iPhone to the HomePod and vice versa, but now the HomePod mini does it just a bit better.
If you're listening to a song on your iPhone 11 or iPhone 12 and bring the phone near the HomePod mini, there are now visual, audio, and haptic effects when the song transfers. As the iPhone gets closer to the HomePod mini's location, it begins a soft haptic touch rhythm that gets faster and faster as the iPhone continues to approach the HomePod mini. Eventually, the song transfer interface options up, and the song transitions from the iPhone to the mini.
Transferring a song is quicker and more reliable with these visual and haptic-based transfer cues, and there are some other useful changes enabled by the U1 chip too. When an iPhone is held near a HomePod mini, you'll see personalized listening suggestions and song recommendations.
More notably, when you hold an iPhone next to the HomePod mini the iPhone will display playback controls that you can access without unlocking your phone, giving you a quicker way to manually control content playing on the HomePod mini.
This new U1 chip functionality is limited to the HomePod mini because the standard HomePod does not have a U1 chip inside it. Using this feature also requires an iPhone with a U1 chip, and that's limited to iPhone 11 and iPhone 12 models.