Apple Introduces AppleCare One for Multi-Device Coverage

_Dear Friends,_

Baseball season is almost upon us as spring training wraps up and the real games begin next week. The hopes for the Chicago Cubs have never been higher with a great line-up and pitching. Could this be our year? To help matters along, Apple and MLB announced this week that they have struck a multi-year deal to supply 12.9 inch iPad Pros with special STM team-logoed cases and a custom app called MLB Dugout. This app will help managers see performance statistics, check videos from games and analyze how pitchers and hitters are likely to perform against each other.

Baseball has become a game of statistics and until this deal laptops, iPads and iPhones were banned from dugouts. That ban is gone as iPad Pros will replace the notebooks and photographs in big binders. Each team’s data will be downloaded to the iPads before the games. I can see this really speeding up the research about how to play a certain batter or what kind of stuff a pitcher has. Cubs manager, Joe Maddon, is not so sure “This might sound nuts to you, bit it might slow down the process. If there’s that moment that permits time to look up something, it might be OK, but I think thats where the piece of paper has it all over the computer–in that moment.” Well, Joe you are a hell of a manager but I’ll put the iPad Pro up against your binder any day! Fortunately, MLB didn’t ban paper so Joe is all set.

I have talked many times about being a socially responsible business but this week we saw the power for good that businesses can use. While not yet successful in overturning the North Carolina law that legalizes discrimination against LGBT people, business pressure stopped a similar law in Georgia and the list of businesses lining up for repeal in NC is impressive. It was business that turned the tide when civil unions were first introduced in Vermont and it can be business again that dope-slaps some sense into these backwards legislatures, too.

This week’s Kibbles & Bytes exclusive features the iPad mini 4 in Space Gray. This 64GB model features Wi-Fi and Cellular and comes with the AppleCare+ protection plan that increases the hardware warranty from 1 to 2 years, technical support from 90-days to 2-years and provides for accidental damage coverage. This is the latest iPad mini that features the Retina display. With 64GB of ram and cellular capability you will never be out of touch. Normally, this bundle is $730 but this week exclusively for Kibbles & Bytes readers you get the “**iPad mini 4 64GB Wi-Fi and Cellular with AppleCare+ for $50 off**”:http://www.smalldog.com/wag900002186 at “**$679.99!**”:http://www.smalldog.com/wag900002186/

_Dear Friends,_

I have become super aware of mosquitos with all the news about the Zika virus. For some reason biting insects just love me whether they are super tiny no-see-ums here in the Keys or slightly larger ones in Vermont they seem to be attracted to me. The first thing that I noticed about the mosquitos down here is that they are tiny compared to the ones that come out every year in Vermont. Seriously though, this Zika virus seems like a very serious health epidemic with the World Health Organization calling it a crisis. They have a pretty serious mosquito control program down here with guys that go door to door to look for standing water and spraying year around.

Apple announced their holiday quarter financials and they beat the estimates on the street and posted the most revenue and profit ever for Apple and in a truly remarkable factoid, the most profit generated in a quarter by any public corporation, EVER. I will talk about the financial results below but let’s just say if Apple has reached a plateau it sure is a lofty one! Just to contrast that a bit against the other guys, Samsung reported a 40% decline in profits. They posted about a $15.8 billion profit for the entire year which Apple crushed in a single three month period!

This week’s Kibbles & Bytes exclusive features the “**Apple Certified Reconditioned 21 inch iMac**.”:http://www.smalldog.com/wag900002135/special-apple-certified-reconditioned-21-5in-imac-2-7ghz-w-applecare-for-1099 This iMac is configured with a 2.7GHZ i5 processor 8GB of ram and a 1 TB hard drive. This model has the latest 802.11ac wireless protocol and comes with the same 1 year warranty as new iMacs. We are bundling it with Applecare so instead of a 1 year warranty you get 3 years and instead of 90 day days of free Apple technical support you get 3 years too. Kibbles & Bytes readers can purchase this special bundle for “**$1099!**”:http://www.smalldog.com/wag900002135/special-apple-certified-reconditioned-21-5in-imac-2-7ghz-w-applecare-for-1099 That’s the lowest price ever for a warrantied iMac with Applecare!

_Dear Friends,_

Definitely some weird weather in Vermont. One day it is below 0 F and the next day it is in the 40’s and raining. It makes for some tricky driving as wet pavement can hide some black ice. Hopefully as we enter March there will be some snow because the ski areas and local merchants are suffering from the weird weather. We can take a lot of snow and freezing temperatures but this freeze/thaw cycle is just annoying.

Apple has very strong hardware sales but their hidden gem may be the recurring revenue streams that they develop. Of course, we know about the 11 million+ subscribers to Apple Music that pay a monthly fee and the iCloud storage fees but there are other much larger streams that provide Apple with consistent revenue. The iPhone is a big one that has two parts to it – on the one hand, people want to upgrade to the latest iPhone and that upgrade business is huge. There is also Apple’s new financing of iPhones that spreads the cost of the iPhone over several months and allows much easier iPhone upgrades. The carriers are also offering these easy upgrade programs which enhances the recurring revenue stream. It is sort of like printing money.

This week’s Kibbles & Bytes exclusive features the “**Apple Factory Reconditioned 21.5-inch iMac**”:http://www.smalldog.com/wag900002159 with 2.7GHz i5 processor, 8GB of ram and a big 1TB drive. We are bundling this with the AppleCare Protection Plan which extends Apple’s 1-year warranty to 3-years and extends your 90-days of free technical support from Apple from 90-days to 3-years. To complete this bundle because we always want you to have a backup of your personal data, we are including the Apple Factory Reconditioned 2TB Time Capsule. The Time Capsule is the combination of an Airport Extreme base station and 2TB hard drive. Because you are buying it at the same time as the iMac it is also covered for 3-years by AppleCare! Normally, if you bought this bundle new it would cost $1769, bought normally as Apple Refurbished it would be $1399 but this week for Kibbles & Bytes readers you can get this great deal on an iMac with Time Capsule and AppleCare for only “**$1299.99!**”:http://www.smalldog.com/wag900002159

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!

For more than half a century, Riley B. King – better known as B.B. King – defined the blues for a worldwide audience. Since he started recording in the 1940s, he has released over fifty albums, many of them classics. He was born September 16, 1925, on a plantation in Itta Bena, Mississippi, near Indianola. In his youth, he played on street corners for dimes, and would sometimes play in as many as four towns a night. In 1947, he hitchhiked to Memphis, TN to pursue his music career. Memphis was where every important musician of The South gravitated, and it supported a large musical community where every style of African American music could be found. B.B. stayed with his cousin Bukka White, one of the most celebrated blues performers of his time, who schooled B.B. further in the art of the blues.

B.B.’s first big break came in 1948 when he performed on Sonny Boy Williamson’s radio program on KWEM out of West Memphis. This led to steady engagements at the Sixteenth Avenue Grill in West Memphis, and later to a ten-minute spot on black-staffed and managed Memphis radio station WDIA. “King’s Spot,” became so popular, it was expanded and became the “Sepia Swing Club.” Soon B.B. needed a catchy radio name. What started out as Beale Street Blues Boy was shortened to Blues Boy King, and eventually B.B. King.

In the mid-1950s, while B.B. was performing at a dance in Twist, Arkansas, a few fans became unruly. Two men got into a fight and knocked over a kerosene stove, setting fire to the hall. B.B. raced outdoors to safety with everyone else, then realized that he left his beloved $30 acoustic guitar inside, so he rushed back inside the burning building to retrieve it, narrowly escaping death. When he later found out that the fight had been over a woman named Lucille, he decided to give the name to his guitar to remind him never to do a crazy thing like fight over a woman. Ever since, each one of B.B.’s trademark Gibson guitars has been called Lucille.

B.B. was inducted into the Blues Foundation Hall of Fame in 1984 and into the Rock and Roll Hall of Fame in 1987. He received NARAS’ Lifetime Achievement Grammy Award in 1987, and has received honorary doctorates from Tougaloo(MS) College in 1973; Yale University in 1977; Berklee College of Music in 1982; Rhodes College of Memphis in 1990; Mississippi Valley State University in 2002 and Brown University in 2007. In 1992, he received the National Award of Distinction from the University of Mississippi.

B.B. King came to Vermont many times and I had the pleasure of being at several of his concerts. He died last year at the age of 90 and was performing to sold out crowds right up until he died. B.B. King is gone but the –The Thrill is Gone- lives forever.

Motorcycling down here is sort of boring. I have my bike all tuned up but there is literally only one road and the fastest speed limit in Key West is 30mph. I think we may have to trade in Grace’s Vespa to get a real motorcycle for her so we can take some longer trips down here.

Pitchers and catchers reported for spring training and the Cubs Kyle Schwarber is already breaking windshields in Arizona at the Cubs park. Maybe this year?

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

Your Kibbles & Bytes Team,

_Don, Emily, & Hadley_