25 Years of the Mac | 1984 – 2009

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

To celebrate the Mac’s 25th anniversary, we’re offering an additional 10% off all items on clearance for one week only. Most of these items have already been steeply marked down, with some listed below cost.

You can see “all clearance items by clicking here.”:http://www.smalldog.com/category/x/x/x/Clearance

We have iPod accessories, hard drives (including premium Glyph and G-Tech drives), books, notebook cases, software, games, Mac parts and much more listed.

To get the additional 10% off, simply add any clearance items to your cart and then enter coupon code *10percent* in the shopping cart.

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!

_Dear Friends,_

It is snowing out and the temperatures have warmed up from well below zero for a couple days. We have a Siberian air mass headed our way with the severe cold coming back this weekend. Things just seem to break when it gets this cold for an extended period of time.

On Monday when it was -25 here at the office, we had a series of weather-related failures. The hot water stopped working until I found a portable heater to put in the closet where the instantaneous hot water heater was located to thaw out the pipes. Grace’s car just stopped working and was left stranded in a cell-phone dead zone. Worst of all, the furnace failed in the warehouse and the crew down there tried to put up a brave face and continue working as the temperatures dipped but ultimately we had to give up our conference room for Mac repairs.

The cold weather does make for interesting noises from the crunch of the cold snow beneath your feet to the creaking of the house as it contracts and expands from the cold outside and the heat inside. The roads tend to be more slippery during very cold weather because road salt doesn’t work at those temps. Fan Tail likes the cold and snow and she will just roll around in it and run on the trails from our snowshoes. On the other hand, Hammerhead needs to be coaxed to even step one paw out the door.

It has been a historic week. We had the inauguration playing on many of the Macs in our offices and stores, and pretty much everything stopped as we watched the 44th President of the USA inaugurated in front of a couple million friends. It is simply amazing and encouraging to realize that just 40 years ago we were working for basic civil rights in voting, housing and schools, and that less than 150 years ago, slavery was still common. In 1977, when Vermont was still a sovereign country, our state constitution outlawed slavery, becoming the first country to do so and later, the first state to outlaw it altogether. We now we have an African-American President of the USA. I was so proud to be an American, so proud of my country, and so proud of my President.

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

*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*