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Tuesday, April 28, 2015

Google Unveils Project Fi: A Network for the Nexus 6

Today Google officially announced their previously rumored entry into the world of wireless service. This new endeavor is known as Project Fi, and it's exclusive to owners of the Nexus 6 who live in the United States. While carriers have offered branded mobile devices at times, the entry of a company making mobile phones into the business of providing the wireless service for their own devices is unprecedented. But unlike Google Fiber, Project Fi is not Google's attempt to build a new wireless network in the United States. Rather, they will be acting as a Mobile Virtual Network Operator (MVNO) running on the T-Mobile and Sprint networks, as well as piggybacking off of open WiFi hotspots.
On a typical carrier you will pay for some bucket of data alongside your calling minutes and texts, and if you don't use all that data during the month then it disappears. Some carriers like T-Mobile USA have played with this by allowing data to roll over to another month, much like how many prepaid carriers allow minutes to roll over to the next month if they are unused. But in general, you often end up paying for more data then you actually need to avoid overage charges. With Project Fi, Google starts plans at $20 per month for unlimited domestic calling and unlimited domestic + international texting. On top of that you can select how much data you believe you will need, with the cost being $10/GB.
The unique aspect of Project Fi when compared to other network operators is how Google is changing the situation with unused data. Rather than rolling it over or having it disappear, Google simply credits you for the difference. For example, a user who pays $30 for 3GB per month may only use 1.4GB that month. In that situation, Google will credit them $16 for the data they did not use. Effectively, this means that Google only charges users for the data they use, but not at the typically ridiculous rates for pay as you need data on other carriers. What I don't understand is why Google even has data tiers in the first place. Given the rounding, they might as well just charge $1 for every 100MB used, as any overages are charged as the same rate as the data in the plan itself.
Google is also taking much of the pain out of roaming in other nations. The data you purchase for your Project Fi plan is usable in 120 different countries, although it's limited to a speed of 256Kbps. Google's network also extends beyond cellular carriers, with Google's network configured to automatically utilize public hotspots as part of the network itself. WiFi calling is supported, and so the transition between cellular and WiFi should be seamless in theory. Google is also promising that information will be encrypted so that users can have their privacy preserved when using public WiFi.
The last really interesting part of Project Fi is how it will be able to integrate with Hangouts. Since your phone number "lives in the cloud", Google can push texts and phone calls to any devices that have the Google Hangouts application installed. This extends from your Nexus 6, to your Chromebook, to your iPad, to your Windows PC.
Project Fi is currently beginning as an early access program. Users who are interested and who own the Nexus 6 can check out Google's sign up page to apply to be one of the first users of this new network. Google's blog post in the source below has a bit more information as well as a video about this new project

Apple Releases FY 2015 Q2 Earnings Results: Strong Growth In China Fuel Large Sales

Today Apple announced their earnings for their second quarter for fiscal year 2015. Once again, iPhone dominated their revenue stream, with 40% more units sold and 55% more revenue than the same period last year. Total revenue for the quarter came in at $58 billion, which is up 27% year-over-year. Gross margin for the quarter was up too, coming in at 40.8% for this quarter. Net income was $13.6 billion, which works out to $2.33 per share.
Apple Q2 2015 Financial Results (GAAP)
 Q2'2015Q1'2015Q2'2014
Revenue (in Billions USD)$58.010$74.599$45.646
Operating Income (in Billions USD)$18.278$24.246$13.593
Gross Margin (in Billions USD)$23.656$29.741$17.947
Net Income (in Billions USD)$13.569$18.024$10.223
Margins40.8%39.9%39.3%
Earnings per Share (in USD)$2.33$3.08$1.66
Almost 70% of Apple’s revenue came from international sales, but China was the big market for Apple this quarter. Sales in Greater China were up 71% year-over-year, to $16.8 billion for this quarter. This is even a 4% rise over Q1, which was the launch quarter for the iPhone 6 series. China is now the second biggest market for Apple, closing in on the Americas where sales this quarter were $21.3 billion.
iPhone sales kept up their torrid pace. In Q1, Apple sold almost 75 million iPhones, and while there is traditionally a drop in the quarter succeeding the launch of the phone, they still managed to sell over 61 million iPhones for Q1. Year-over-year, this is a 40% increase in devices sold and even better for Apple’s bottom line, revenue was up 55%. With Apple, there really is iPhone, and everything else. iPhone accounts for 69.4% of all of Apple’s revenue. They are top heavy in this one product, but it seems to be a product that just keeps giving returns.
Mac sales were also up, with a 10% increase in units sold as compared to Q2 2014. Revenue for Mac also increased, but only 2%. Unit sales were 4.5 million devices, which accounted for $5.6 billion in revenue. This works out to an Average Selling Price of $1230.55 per Mac computer. Macs have once again surpassed iPad sales to become the number two device at Apple. For Q1, and the launch of the new iPad Air 2, iPad sales briefly retook the lead, but Mac sales have surpassed iPad again.
iPad sales have continued to struggle. What was once thought to be the next iPhone has certainly struggled to maintain the trajectory it first had. Sales for Q2 were 12.6 million units, which is down from the 21.4 million last quarter (when the new products were launched) and also down significantly year-over-year from the 16.35 million in Q2 2014. That is a 23% decline in sales, and it resulted in a 29% reduction in revenue, with iPad now coming in at $5.4 billion.
Apple Q4 2014 Device Sales (thousands)
 Q2'2015Q1'2015Q2'2014Seq ChangeYear/Year Change
iPhone61,17074,46843,719-18%+40%
iPad12,62321,41916,350-41%-23%
Mac4,5635,5194,136-17%+10%
Services however did not suffer such a fate, and at $4.996 billion in revenue, iTunes, the App Store, and other Apple services are now almost a $5 billion per quarter business. Revenue was up 4% since Q1 2015, and up 9% from a year ago.
The final segment Apple reports on is “Other Products” which include iPod, Apple TV, Beats, and accessories. Revenue for this segment was $1.69 billion, down from $1.88 billion a year ago, and $2.69 billion in Q1. This is a year-over-year decrease of 10%. Much of that would be iPod sales which only two quarters ago were still listed in their own category, but have been falling for several years now as they have been superseded by smartphones.
Apple Q2 2015 Revenue by Product (billions)
 Q2'2015Q1'2015Q2'2014Revenue for current quarter
iPhone$40.282$51.182$26.06469.4%
iPad$5.428$8.985$7.6109.4%
Mac$5.615$6.944$5.5199.7%
iTunes/Software/Services$4.996$4.799$4.5738.6%
Other Products$1.689$2.689$1.8802.9%
As part of their announcement, Apple is also expanding their capital return program. What was first going to be a $90 billion share repurchase program is now up to $140 billion. There is also going to be an 11% increase to the quarterly dividend, which will now be $0.52 per share, payable on May 14th to all shareholders of record as of May 11th. Since the creation of their capital return program, Apple has paid out over $112 billion to shareholders, with $80 billion of that being share repurchases.
For Q3, the forecast is revenue of $46 to 48 billion, with margins between 38.5% and 39.5%.
To a certain extent, we have become numb to the record breaking numbers every quarter, but really it is impressive that they have been able to sustain this for so long. For Q2, they once again set records for iPhone and Mac sales, and the App Store had an all-time record quarter. They have some new products in the market now with the MacBook and the Apple Watch, so it will be interesting to see the Q3 numbers

The LG G4 Day Live Blog (11AM ET Start)

11:49AM EDT - That's a wrap. Time for some hands on
11:47AM EDT - Looks like we're wrapping up, it's the final summary
11:46AM EDT - test
11:46AM EDT - 4000 people will be invited to take part in a user experience
11:43AM EDT - Another video about users having some time with the phone
11:42AM EDT - G4 coes with QuadBeat 3 headphones
11:42AM EDT - VW drivers can use Mirror Link to display the phone in the car
11:41AM EDT - 15GB+100GB of Google Drive for 2 years
11:41AM EDT - Google Docs, Sheets and Slides are preinstalled
11:40AM EDT - Smart Notice
11:40AM EDT - Gallery seems to do dynamic showing, giving previews of 100s of photos at once
11:40AM EDT - Does a gallery mode on your photos based on time and location, doesn't have to upload to cloud to do so
11:39AM EDT - UX 4.0 Software
11:38AM EDT - Looks like for a teardown, the display lifts out to replace it
11:38AM EDT - Another video
11:37AM EDT - Totals 11% lower power consumption
11:37AM EDT - Sends notices about Apps drawing power when the display is off
11:37AM EDT - smart power saving UX as well
11:37AM EDT - new structure of liquid crystal in the display
11:37AM EDT - Special memory for a display that is showing a still image, allowing the CPU to sleep
11:36AM EDT - embedded In-Cell Touch tech
11:35AM EDT - due to IPS display
11:35AM EDT - more reds than sRGB screens
11:34AM EDT - Talking about DCI color expression standards
11:33AM EDT - Now onto user experience
11:33AM EDT - I keep writing selphie and having to correct my spelling. FF8 players know what I mean
11:33AM EDT - open hand-fist-open hand-fist for four selfies in eight seconds
11:33AM EDT - use a gesture to set a timed photo
11:32AM EDT - Gesture Interval Shot
11:32AM EDT - 8MP
11:32AM EDT - Now talking selfies
11:31AM EDT - Another video, with a professional photographer and the G4
11:29AM EDT - Adjust shutter speed up to 30 seconds
11:28AM EDT - Allows saving in RAW + JPG in the same shot
11:28AM EDT - Similar control to DSLR level, including RAW formats
11:28AM EDT - Simple, Auto and Manual modes in the camera software
11:27AM EDT - adjusts flash temperature and white balance as you take the photo
11:27AM EDT - Reads RGB and IR
11:26AM EDT - reads an objects exact color
11:26AM EDT - 2nd sensor on back is a color spectrum sensor
11:25AM EDT - OIS 2.0 has extended range to 2 degrees in x and y
11:24AM EDT - sensor on G4 is 1/2.6"
11:24AM EDT - i.e. you want a low F stop and a large sensor size
11:23AM EDT - 'To take photographs well, you need to allow as much as light as possible'
11:22AM EDT - 'Understanding the essence of the camera'
11:22AM EDT - launch the camera in 0.6 secs
11:22AM EDT - 276ms for laser focus
11:21AM EDT - 'Moved from megapixels to fast auto focus'
11:21AM EDT - Now on to the camera
11:20AM EDT - video about leather making now
11:20AM EDT - Normal ceramic back if you don't want leather
11:20AM EDT - 'That's what differentiates the G4 most from other smartphones'
11:20AM EDT - Still going on about leather
11:19AM EDT - Images look like they're hand made, they're probably not
11:19AM EDT - Vegetable tanned, full grain leather
11:19AM EDT - Back is leather
11:17AM EDT - removable battery
11:16AM EDT - 'so 20% better durability'
11:16AM EDT - so it's angled on the table
11:16AM EDT - they're not expaining it
11:16AM EDT - 3000R arc, whatever that means
11:15AM EDT - 'Slim Arc;
11:15AM EDT - 'Smartphones have become uniform slabs of metal'
11:14AM EDT - Human Centric UX
11:14AM EDT - Great Visual Experience
11:14AM EDT - Comfortable Elegance
11:14AM EDT - Focus on three key values
11:13AM EDT - Andrew Coughlin, Head of LG UK Mobile
11:13AM EDT - Quick shot, shoot instantly from off screen with the rear button
11:12AM EDT - Gesture Interval shot
11:12AM EDT - 3000 mAh battery
11:11AM EDT - OIS 2.0
11:11AM EDT - 20% wider color range
11:11AM EDT - Another video
11:10AM EDT - 'Collaboration with Qualcomm was deep and unique'
11:09AM EDT - 'superior camera functionality, 4K video capture, Adreno 400 series, Quad HD display'
11:09AM EDT - Cat 6 LTE
11:09AM EDT - That's dual core A57 and quad core A53
11:08AM EDT - Snapdragon 808 and X10 LTE
11:08AM EDT - starring Qualcomm
11:08AM EDT - Another video
11:08AM EDT - "Experience the G4"
11:07AM EDT - LG UX 4.0
11:07AM EDT - IPS Quantum Display
11:07AM EDT - Laser Cam F/1.8
11:07AM EDT - Camera technology is second to none
11:07AM EDT - Camera technology is second to none
11:04AM EDT - Video for the G4 now
11:04AM EDT - "Innovation for a better life"
11:04AM EDT - "The purpose should not be just for technology, we must understand the user and the benefits"
11:03AM EDT - "We develop more professional features for the G4"
11:03AM EDT - "We use our strengths to meet customers requirements"
11:03AM EDT - President of LG Europe, Brian Na
11:02AM EDT - She's a TV/sports presenter
11:02AM EDT - Gaby Logan, presenter on stage
11:01AM EDT - "LG G4"
11:01AM EDT - very colorful
11:00AM EDT - It's starting. A video
10:58AM EDT - We're a couple of minutes away from the official start, in a church in London. We're sitting in pews, but I have a good view
10:57AM EDT - We're in London for LG's launch of the G4. The wifi / my hotspot isn't that good, but the event starts soon. Read as much as we can post!