Dear Friends,

The trip up the the Everglades was pretty uneventful although we did see alligators and eagles as we were watching nature go by. Grace wants to go back up for an airboat ride so we will have to put that on the list.

I am very happy to report that Small Dog Electronics now offers Go-Pro cameras and accessories. It took us many tries but I was able to meet with someone that could make a decision at CES in Las Vegas so we are now all set and Go-Pro should be in all of our stores. We’ll feature skiing and motorcycling kits up in the Green Mountains and some surf-oriented bundles down in Key West.

I guess this should be in a soapbox but I just want to make a quick statement that I feel that Tim Cook and Apple are 100% correct in resisting the government’s attempt to force them to create software to defeat the encryption inherent in the iPhone. One of Apple’s most valuable commodities is safety. You know when you buy an Apple product that your data is safe. Safe from most viruses, malware, ransomware and also that your private data remains just that…private. While I certainly sympathize with those investigating the horrible San Bernadino terrorist actions, I do not feel that we should pay an even higher price and sacrifice our liberty and privacy as a result. Bravo to Tim Cook and Apple.

This week’s Kibbles & Bytes exclusive is the Tempus Pro Weather Station. This complete wireless weather station has been one of out best selling devices. It combines an indoor monitoring station with an outdoor instrument and an iPhone or iPad App to give you complete weather information. It includes sensors for indoor and outdoor temperature, humidity, barometric pressure, rainfall and wind speed. It is simple to install and works by Bluetooth between the outdoor and indoor sensor and Wi-Fi to your iPhone. This is normally $159.99 but for this week for Kibbles & Bytes readers it is $25 off at $134.99!

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  • Black History Month – Thurgood Marshall

    Way before Barack Obama broke the color barrier to become president of the USA, Thurgood Marshall broke that barrier for another of the most powerful and important positions in the country, that of Supreme Court Justice. After graduating from high school with honors he applied to the University of Maryland law school where he was not accepted because he was black. Instead, he went to Howard University and received his law degree in 1933.

    Before being appointed Supreme Court Justice, he had a stellar career from 1934 to 1961 as a lawyer for the NAACP where he won landmark civil rights cases. Beginning in 1940, Marshall won 29 of 323 US Supreme Court cases. One of his first big cases was Smith vs. Allwrite in 1944 which overthrew the South’s “White Primary”. The White Primary was a practice of excluding African Americans from the Democratic Party. It was most common in a state where that party controlled the state government.

    In 1954 Marshall achieved a landmark victory with the case of Brown vs. Board of Education of Topeka. This Supreme Court decision demolished the legal basis for segregation in the USA. It also made state-enforced racial segregation in public schools invalid.

    In 1961 he was appointed the the US Court of Appeals by President Kennedy. He was the first African American on the Court of Appeals and went on to be appointed to the Second Court of Appeals. President Johnson made him the Solicitor General in 1965 and later in 1967 President Johnson nominated him for the Supreme Court.

    On the Supreme Court he was a steadfast supporter of positive gender and racial action policies and in his 24 years on the court he became a vocal liberal on a conservative-dominated court. He was an ardent supporter of Constitutional protection of individual rights, in particular the rights of criminal suspect versus the government. Marshall’s backing of Affirmative Action led to his strong dissent in the Regents of the University of California vs. Blake in 1978. Justice William Brennan was Marshall’s most reliable confederate who voted with him against the death penalty.

    Citing poor health, Thurgood Marshall stepped down from the court in 1991 and remained a vocal critic of the court until his death in 1993 at the age of 84.

  • The Most Profit Ever in a Single Quarter

    Apple posted record earnings and profit for the holiday quarter disappointing those analysts that predicted less than stellar results. Of course, the realistic guidance for the next quarter sent Apple stock plummeting while those same analysts maintain a price target that is $40-50 higher than the current price of the stock. Okay, so Apple’s profit and revenue were all time records for the company but the remarkable tidbit is that no public corporation ever has posted that much profit in a single quarter. Let’s see how Apple did that.

    First of all, Apple sold 74.8 million iPhones in the quarter. Not too shabby and that revenue is nearly 70% of Apple’s total. The average sales price (ASP) for the iPhone was up to $691 which also led to slightly higher gross margin. To put that is some perspective that is an average of 34,000 iPhones sold per hour 24/7 for 13 weeks.

    They finished the quarter with about $215 billion in cash which represents about $39/share. Macs sales were down a bit at 5.3 million units and the iPad continues to do moderate in sales with sales dropping year on year from 21.4 million units to 16.1 million units.

    Currency “headwinds” have caused some of these results to be muted. With the exceptionally strong dollar it is more difficult to export US goods and sales suffer a bit. The Euro and British Pound were down double digits and the Canadian and Australian dollars were down 20% or more. It gets worse. The Russian Ruble is down by 50% and Brazilian Real is down 40%. Apple estimated that if it were not for these global currency fluctuations that their revenue would have been over $80 billion representing an 8% increase. But despite those headwinds, Apple posted their best quarter ever.

    Other high points were service revenue which was the highest ever at over $6 billion. Wow, $6 billion in just iTunes, App store and a few other things. That is more revenue that quite a few well known companies and a 24% growth year over year. Other products which include the Apple TV, Beats and Apple Watch also were strong with $4.5 Billion in sales.

    In another milestone that just points to the success of the services side of Apple’s business Tim Cook announced that they now calculate that there are more than 1 billion Apple devices in use worldwide which is up 25% year over year. That is simply incredible considering that there are only 7.4 billion people on the planet!

    What sent Apple stock down was Apple’s realistic prediction that iPhones sales in their 2nd fiscal quarter would decline year over year by as much as 15-20%. Last year’s 2nd quarter was strong because of supply issues that moved some revenue from the 1st to 2nd quarter and the impact of the global currency situation has caused some price adjustments. Apple remains very bullish on the iPhone market and pointed to the fact that in China over 50% of the iPhones sold were to people buying their first iPhone. Apple pointed out that the growth of the middle class in China is unprecedented with the middle class comprising about 50 million people in 2010 and now it is projected to be $500,000,000 by 2020.

    Even if Apple sells “only” the 40-45 million iPhones in this quarter that would still be more revenue that most companies earn overall in a single quarter. To put this in perspective, Apple books more revenue at strong margins, than Amazon, Facebook, Google or Microsoft generate from all of their operations.

    All in all the financial results that Apple announced were an incredible testament to the quality and innovation of Apple products and of a company doing things right. Congratulations to the entire Apple team!

  • New Urbanears Active Headphones

    So by now, it might be clear that I am a bit of a headphone junkie. I’ve come to the conclusion that I can collect and use headphones like I do bags and purses! In my world I can never have enough, so I jumped on the opportunity this week to test our the new “**Hellas**”:http://www.smalldog.com/wag900002177 and “**Reimers**”:http://www.smalldog.com/wag900002181 from Urbanears.

    The Hellas are an over the ear bluetooth headphone. It took a few minutes to get them paired with my computer. My only complaint about these headphones is that I found the touch-less buttons to be a bit clunky to use. The sleek design means you can’t physically see the buttons, so it take some practice and time to learn where the buttons are. However, there are a ton of other features with these headphones that make them extremely appealing. They are incredibly lightweight, comfortable to wear and they have good sound to them. I think my favorite feature about these is that the fabric on the headband and the earpieces are machine washable. You can actually wash the fabric and return your headphones to new condition. As I just started to use these the other day I have not actually tried to wash the fabric, but as more and more people are working out with over the ear headphones this is a huge selling point. Another hidden feature is that there is a built in microphone, so if you are using these with your iPhone, you can take calls without having to remove your headphones.

    Also part of the active line are the Reimers. They deliver on fit and comfort while providing some great sound! I am impressed with how far ear buds have come over the years. What’s interesting about these headphones is that while they are in the active category, they are actually a wired set of headphones. However, Urbanears added several great features to ensure these headphones can stand up to the intensity of any workout. They have two clips for securing them to your clothing and they feature reflective cabling to light up during early morning or late evening runs. They use a new earlock technology that ensures they stay in during your workout, so no more fears of them falling out during sit-ups, push-ups and the like. I admit I am just a runner, so some of the more intense workouts I’ve not tried these, but judging by how well they stayed in for runs I am confident in saying they will stay put! Last but not least, they feature standard iOS controls we have all grown to expect out of headphones.