On Monday after the market closed, Apple announced their fourth quarter results and they were spectacular, beating even the most optimistic of the analyst’s predictions. Apple posted a $8.5 billion profit on sales of $42.1 billion or about $1.42 per share. For the full fiscal year, Apple generated $182.8 billion in sales which is record annual income and a profit of $38.5 billion.

While Apple’s revenue and profit was primarily driven by iPhone sales, with a record of over 39 million iPhone sold during the quarter, Mac sales were also a surprising high point for the quarter. Apple sold a record 5.5 million Macs during the quarter even though there was no major product changes. Back in 2011, with new product introductions, Apple sold 4.9 million Macs so this was a significant increase. This represents a 46 percent increase in Mac sales for the quarter and propelled Apple marketshare to the highest point since 1995.

These results only included about a week of iPhone 6 and 6 Plus sales and Tim Cook said that they are selling every iPhone they can make with demand far outstripping supply for these new iPhones. Tim said that when it comes to supply and demand for the new iPhones “we’re not even on the same planet”.

Despite returning $17 billion to shareholders through buybacks and dividends during the quarter, Apple ended the quarter with $155.2 billion in cash and acquired 20 companies during this period.

While Apple saw declining iPad sales, new models were introduced last week and begin shipping this week. Apple’s partnership with IBM to develop new iOS-based mobile solutions will begin rolling out in November with a concentration on banking, government, insurance, retail, travel, and telecommunications. While it is difficult to quantify this partnership, it is clear that it is a significant advantage in the marketplace.

Apple’s iTunes business was up 22 percent year-over-year and generated $5.4 billion in revenue, which a pretty strong business on its own. Apple will begin to report their results a bit differently going forward. iPods, Apple TV, Apple Watch and Beats will be included in “Other Products”. Retail sales will be included in “Regional Sales” and Apple Pay, iTunes, software, and other services will be lumped together in “Services”.

Looking forward, Apple gave very strong guidance for the holiday quarter, predicting sales of between $63.5 and $66.5 billion and declared a dividend for shareholders of $0.47 per share.

The hottest brand on the planet is continuing to crank out the best products on the planet and the sales are the proof. Tim Cook wrapped it up by saying:

bq. ??With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.??

Working from my home office down here in the Keys is quite different from being in the office at Small Dog HQ, but it does allow me to concentrate on some of the important work we have to do as we get ready for the holidays. We have a steady stream of visitors coming over the next few weeks and I did install a Belkin WeMo camera at my house on Prickly so I can watch the snow pile up this winter.

Thank you so much for reading this issue of Kibbles & Bytes!

Your Kibbles & Bytes team,

_Don & Mike_

2014 marks the 30th anniversary of the most important technological development of all time: Tetris. There are probably many of you out there that will insist that the Macintosh computer was the most important tech release of 1984, and I will grant that it is a close second, but I am still standing behind the classic tile-matching puzzle video game.

For those of you who don’t know, Tetris is a very simple game in which any of seven different blocks, which are every possible combination of four smaller square blocks that have adjoining sides, fall from above and your job is to move them side-to-side and/or rotate them in order to complete horizontal lines which disappear when completed. The ultimate move is to leave only one vertical line incomplete and drop the “line” piece in to complete four horizontal lines at once. This is a Tetris and you will be rewarded with big points, flashing graphics, sound effects, and the satisfaction of a job well done.

Tetris was originally developed by Alexey Pajitnov in the Soviet Union, and was the first video game exported from the USSR to the US. Its popularity skyrocketed when a version was released for the Nintendo GameBoy in 1989, and versions have since been released for just about every console, operating system, personal electronic device, and has even been played by using the windows in a large building as the blocks.

While the 8-bit NES version will always be my favorite, I have been playing a new version on my iPhone: “*Tetris Blitz by Electronic Arts.*”:https://itunes.apple.com/us/app/tetris-blitz/id632827808?mt=8&at=11lb7k This version takes the classic gameplay and condenses it into a two-minute speed round in which the goal is to score maximum points. They have added a number of power-up blocks which trigger different actions, such as lasers that burn up several lines for you or masses of blocks that drop all at once. You can play in single player mode, head-to-head against strangers or your FaceBook friends, as well as in special tournaments which often have different rules or game mechanics for added variety. This app is free, but employs what has come to be known as the freemium model, which means that there are a fair number of in-app ads and in-app purchases that are available. If you can learn to ignore these, this app is a fun addition to the Tetris family and only -wastes- uses two minutes at a time.

The best part? Tetris is good for you! According to research, playing half-an-hour a day for three months boosts general cognitive functions such as critical thinking, reasoning, language and processing and increases cerebral cortex thickness. It has also been shown to be a potential therapy for preventing PTSD as well as a way to help quit smoking. “*See here for more information.*”:http://en.wikipedia.org/wiki/Tetris#Effect_of_Tetris_on_the_brain

“*Download Tetris Blitz for iOS FREE here!*”:https://itunes.apple.com/us/app/tetris-blitz/id632827808?mt=8&at=11lb7k