Apple reported their 1st Quarter financial results on Wednesday after the market closed. Reporting for the Oct-Dec 2008 period, Apple posted the highest revenue and profit in the company’s history! I have run out of verbs to describe Apple’s performance, as quarter after quarter, year after year, they post record sales and profits. In the midst of the worst economic crisis in generations and a horrible retail environment, Apple continues to innovate and sell while the management team leads Apple to financial success.

Apple posted revenue of $10.7 billion and a net profit of $1.61 billion for the 3 months. If you count iPhone and Apple TV revenue that Apple spreads over 24 months, Apple had $11.8 billion in sales and a $2.3 billion profit. These are simply amazing numbers in good economic times; in the current climate, they are unprecedented. It was the first time ever that Apple posted quarterly revenue in excess of $10 billion. Apple now has $28.1 billion in cash and short-term securities and is not seeking a government bailout.

Earnings per share were $1.78, which was well above Apple’s guidance of $1 and well above the “whisper” number of $1.36. Apple provided optimistic guidance for the next quarter while cautioning that their crystal ball is a bit foggy given the economic climate. They are projecting revenue of $7.6 billion to $8 billion with earnings in the neighborhood of $1/share.

Here’s some other highlights:

*The Mac Business*

* Apple sold an astounding 2.5 million Macs, 728,000 desktops and the balance MacBooks and MacBook Pros. This is a continuation of a trend from desktop to laptops that we have seen over the past few years.
* Apple saw declines in the educational market due primarily to the poor economy.

During the analyst call Tim Cook was skeptical about netbooks because of the slow processors, cramped keyboards and displays, but continue to watch the space and has ideas.

*Apple TV*

There was a lot of speculation about the Apple TV over the past few months, but Tim Cook reported that Apple TV sales were up 300% and that Apple will continue to invest in the product but still considers it a “hobby.”

*iPhone*

* Apple sold 4.3 million iPhones, easily surpassing their goal of 10 million for calendar year 2008. This represents 88% growth in units and 417% (!!) growth in revenue year over year.

In response to questions about competition, Tim Cook said that Apple is suited up and ready to face competition, and that they welcome it. He went on to say that Apple will fiercely protect its intellectual property in a not so veiled threat to Palm and the Palm Pre.

*Apple Retail*

* Apple’s retail stores continue to mirror our experience in that about 1/2 of the sales of Macs are sold to new to Mac customers (“Switchers”).
* 515,000 Macs were sold at Apple retail, and while year-over-year, revenue per store was down for the quarter, Apple retail stores are averaging $7 million in quarterly revenue.
* Apple plans to open 25 stores worldwide in 2009 and half of those will be outside the USA.

*iPods and iTunes*

* 22,727,000 iPods were sold, an all-time record for Apple.
* Apple retains 73% of the MP3 player market and remarked upon the huge success of the App store on iTunes.

In other news, Microsoft posted quarterly results that missed expectations and will lay off 5,000 employees. They said they could no longer offer profit forecasts for the rest of the fiscal year.

For Apple, the news is quite different. Exceptional products, exceptional management, exceptional performance and a laser-like focus on innovation and quality have put Apple in this enviable position. This greatest story in American business continues!

View specials while on-hand supplies last. Please note that some specials may not be available in our retail stores; check for availability.

See all specials on our “Specials Page.”:http://www.smalldog.com/specials

On January 24, 1984, a then 28-year-old “Steve Jobs”:http://en.wikipedia.org/wiki/Steve_Jobs and 33-year-old “Steve Wozniak”:http://en.wikipedia.org/wiki/Steve_Wozniak (nicknamed “Woz”) introduced the very “first Macintosh”:http://en.wikipedia.org/wiki/Macintosh_128K — a computer “for the rest of us.” __(Note the friendly, cursive “hello” they included on-screen to attract non-corporate types.)__

At the time, IBM dominated the PC scene, and computers were viewed as devices that were too complicated for the average person. The Macintosh changed that forever.

With a unique all-in-one design that would later become a staple feature of the Macintosh line, the Macintosh (later dubbed the “Macintosh 128K” after future versions were released) was successful from the get-go at a pricetag of just under $2,500.

Though sales dropped after the initial introduction period, Apple had success with future models and upgrades, and it paved the way for further innovation–for Apple itself as well as serving as the inspiration for Microsoft Windows. (For more on this, see “Related” below for a link to __Pirates of Silicon Valley__)

*Original Macintosh Specs and Features:*

* 128 KB RAM
* 64 KB ROM
* 3.5″ 400 KB floppy drive
* size: 13.6″ H x 9.6″ W x 10.9″ D
* weight: 16.5 lb.
* 1-bit 512 x 342 pixel B&W monitor
* mouse and attached keyboard (with a coiled telephone-like cable)
* System 1.0 (including the first System and Finder apps) software, MacWrite and MacPaint applications
* Beige Plastic enclosure (yes, it was still beige… it would be 14 more years–and after Steve Jobs’ departure and subsequent return to Apple–before we would see bright colors introduced into the Mac line)

Technology has come a long way since then, giving us far more powerful computing systems and devices for a much lower cost. We have a lot of respect for Apple, and we’re proud to be in the Mac industry.

So here’s to the Mac’s 25th anniversary! Thanks for the memories. We look forward to many more years of innovative, creative and useful products!

Have a favorite Apple product from years past? Let us know!

*More:*

* “View the February 1984 cover of Byte Magazine here.”:http://blog.modernmechanix.com/mags/qf/c/Byte/2-1984/lrg_cover.jpg
* “Read the review of the original Macintosh here.”:http://www.aresluna.org/attached/computerhistory/articles/macintoshbytereview
* “See the iconic 1984 ad here.”:http://www.youtube.com/watch?v=OYecfV3ubP8 __(Trivia: The commercial first ran during the third quarter of Super Bowl XVIII on January 22, 1984, and it was available for purchase 2 days later)__

*Related:*

* “Read about __Pirates of Silicon Valley__,”:http://en.wikipedia.org/wiki/Pirates_of_Silicon_Valley the movie that “documents the rise of the home computer (personal computer) through the rivalry between Apple Computer and Microsoft.”
* “View Apple’s timeline of Steve Jobs.”:http://www.nytimes.com/interactive/2009/01/22/technology/20090122_JOBS.html?th&emc=th (Thanks, Katie!)

__Sources:__
“http://lowendmac.com/compact/original-macintosh-128k.html”:http://lowendmac.com/compact/original-macintosh-128k.html
“http://en.wikipedia.org/wiki/Macintosh_128K”:http://en.wikipedia.org/wiki/Macintosh_128K

Apple quietly changed the specs of the entry-level white MacBook this week. The upside is that it now ships with 2GB of RAM (instead of 1GB), and features NVIDIA 9400M integrated graphics with 256MB of shared DDR2 SDRAM; an improvement over the previous Intel GMA X3100 graphics card.

The downside about the new machine is that it now ships with a 2.0GHz processor (instead of the previous 2.1). However, the frontside bus on the new MacBooks has been boosted from 866 MHz to 1066 MHz. That should more than make up for the processor “downgrade.”

The price is unchanged at $999.99, the standard drive remains 120GB, and there is now an option to upgrade to a 320GB drive. The new MacBooks ship with iLife ’09 installed.

Some will grumble about the downgrade of a 2.0 GHz processor from a 2.1 processor, but in my opinion, the much improved graphics, faster bus, and doubled RAM more than make up for it. Indeed, the faster bus should negate the processor difference.
Also, I would much rather have the NVIDIA 9400M graphics over the Intel GMA X3100 graphics.

We are accepting pre-orders now, with deliveries expected next week. See the new machine “by clicking here.”:http://www.smalldog.com/product/73058

Times are tight right now, but Small Dog Electronics vows to make this a productive and successful year.

We are hoping to expand soon with new retail locations, and Don was recently interviewed by the Burlington Free Press about our plans for the future.

“Read the whole article here!”:http://burlingtonfreepress.com/article/20090119/BUSINESS/90118012&referrer=FRONTPAGECAROUSEL

*At right: Don photographed in our South Burlington store last week.*
__Photo credit: Glenn Russell, Burlington Free Press__

*START SOAPBOX*

These words are sometimes referred to as a curse; however, we certainly are living in extraordinary times. The change that occurred this week was a complete shift in the political paradigm. As I was watching Barack Obama give his inaugural speech and saw the millions of smiling, hopeful faces waving flags, I called my mom who has witnessed many more historical moments than I have. She was overcome with emotion and crying in joy about these interesting times. She said that she has not ever seen anything like this.

The change transcends simply a new President and a different party in control. This is a change that is all about hope and a celebration of our country’s political system. It is a tribute to some revolutionary folks who got together a few hundred years ago and formulated a government with the people as holders of the true power. President Obama tapped into this source of power, utilized his gift of eloquence and combined it with a modern network of email, text messages and internet presence to launch a new era of hope.

I am not naive enough to think that Barack Obama has super powers and that magically all problems will disappear. However, if this new paradigm means that we come together rather than split apart and work together to solve problems, I do not think any problem is too big to solve.

For too long, there have been two Americas. One was comprised of the privileged, wealthy and powerful, and the other was made up of the powerless and disenfranchised. The mosaic of faces that I saw at the inauguration–black, brown, white, young and old–waving flags and smiling and crying in joy gives me hope that President Obama can truly lead us to recover that greatness that makes the USA so unique.

The most poignant part of this change was captured by President Obama in his speech when he said:

“This is the meaning of our liberty and our creed–why men and women and children of every race and every faith can join in celebration across this magnificent Mall, and why a man whose father less than sixty years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.”

It is fitting that a black man was able to stand proudly and take the oath of office of the most powerful position on earth at the same Mall where Dr. Martin Luther King, Jr. moved a nation with his “I have a dream…” speech.

In MLK’s timeless words:

__I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.__

This was a day of change not only for our nation but an inauguration for the world.

*END SOAPBOX*