Apple Vision Pro First Thoughts

So we have Siri and I’ve been playing around with Alexa (don’t tell Grace!) but now I have Dora, too. Dora is the computer from Robert Heinlein’s Time Enough for Love, The Number of the Beast, The Cat Who Walks Through Walls which were some of my favorite Sci-Fi as a kid.

I was helping a customer that has pretty bad arthritis and struggled to use the keyboard. I was straightening out her email and getting her off of AOL (something we do often!) and noticed how difficult it was to type a simple email. So, I showed her dictation on the Mac and wow, it was like a light just got switched on. Dictation has come a long way and if your are on Mavericks, Yosemite or El Capitan, Apple’s enhanced dictation works wonderfully.

Dictation will not be a satisfying experience for you if you have a lot of noise in the room, i.e. other people talking, music, etc, but if you are working alone in a relatively quiet environment it can be a great tool not only for dictating that email but you can also use spoken commands to direct your Mac to take action.

Setting up Enhanced Dictation

* Open System Preferences, then click on Dictation & Speech. Turn on Dictation and set up your options.

* Click *Use Enhanced Dictation*. This will download a 1.2GB file so that you can dictate without internet connection.

* Choose your language and dialect. Some languages, such as English, have multiple dialects.

* Choose the keyboard shortcut you will use to signal that you’re ready to start dictating. The default is pressing the function Fn key twice, which I find convenient but you can customize it.

* Choose your preferred microphone from the pop-up menu below the microphone icon. Normally, you use the internal microphone but if you are using a headset or external microphone you can choose that.

Using Dictation

* Go to a document or other text field and place the insertion point where you want your dictated text to appear.

* Press the keyboard shortcut for starting dictation. The default shortcut is Fn Fn (press the Fn key twice). Or choose Edit > Start Dictation. When your Mac is listening, it displays a microphone with an input meter that rises and falls as you speak.

* Speak the words that you want your Mac to type. Use dictation commands to add punctuation, formatting, and more.

* To stop dictating, click Done below the microphone icon, or press Fn, or switch to another window.

The more you use Dictation, the better it understands you. Dictation learns the characteristics of your voice and adapts to your accent.

I will go into some of the more enhanced features like Dictation Commands in next week’s Kibbles & Bytes but I can tell Dora to Open an App, select text, move up or down and much more. I think you will like dictation on the Mac, give it a try!

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!