Inside Apple - February 2nd, 2018 |

Inside Apple (Feb 2nd, 2018)

Biggest quarter ever / HomePod functionality / YouTube TV

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$AAPL (2:47 p.m. EST): $162.00 (-3.47%) // More info  

In its earnings report Thursday, Apple reported its biggest quarter ever — earning $88.3 billion in revenue for the quarter that ended Dec. 31. Its revenue was up 13 percent from the same quarter a year ago. Apple said 65 percent of the quarter's revenue was attributed to international sales. “We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November," CEO Tim Cook said. The company sold 77.3 million iPhones, 12.3 million iPads and 5.1 million iMacs in the quarter. In the same quarter a year ago, the company sold 78.3m iPhones, 13m iPads and 5.3m Macs. — CNBC

A week before launch, Apple is clearing up confusion about some of its HomePod smart speaker functionality. The $349 device likely will allow users to play songs from apps such as Spotify, but without voice command. But even though the device has Bluetooth 5.0 connectivity inside it, Bluetooth isn't supported. For full music functionality, Apple says a subscription to Apple Music is necessary. You'll also need an iOS device running iOS 11.2.5 or later to set up the HomePod. — THE VERGE

Don't look for "grand slam" products from Apple anymore, Citi analyst Jim Suva says. "It's gone from hitting home runs of products of, 'wow we've got to have this,' to, 'hey these are very good products, let's keep owning them and upgrading them,'" he said in an interview on CNBC's "Squawk Box." With the smartphone industry "maturing" and less exciting products, Suva says the periods of "supercycles" of Apple devices are gone. "Most people in developed countries do have smartphones, and so we think the days of double digit growth for the industry are far behind us." — CNBC

Sonos intends to stay in the smart speaker fight by working with multiple devices, the company's CEO said. “There were a lot of people, back when we started, saying, ‘There’s no way you could ever compete with Bose and Sony,’ the heavyweights of audio at the time. And here we are. I was joking with the team, the reward for having disrupted the space over the last decade is to get to compete with Apple and Google and Amazon," CEO Patrick Spence said of the 16 years Sonos has offered wireless speakers. Spence said he is transparent about his company's desire to not lock into an agreement with one provider. “This is a difference versus the mobile space, where it’s a very personal device, you’re going to use one set of services that matter to you. We know, in the home, there’s multiple music services used. My spouse uses a different one than I do, my children use a different one. With voice services, I see it developing very similarly," he said. — RECODE

YouTube's streaming live television service now is available on Apple TV. YouTube, owned by Google, announced the surprise update on Thursday with a tweet: "Hey @AppleTV users, check the app store." YouTube also made the service available for Roku users. For $35, YouTube TV subscribers can view premium cable channels in a move similar to Sling and Playstation's Vue. — THE VERGE

App of the Day Tracker 

Apple's highest editorial/curatorial standard is its coveted "App of the Day." We've heard from many investors, developers, and entrepreneurs that they watch these obsessively to spot trends and rising companies. We're going to keep a running list of the prior week's apps that Apple has featured. Here's the latest list:

2/2: Tasty: BuzzFeed food and video recipes (food and drink; free to download, in-app purchases)

2/1: Zen Brush 2: Drawing app focused on East Asian ink brush (entertainment; $2.99)

1/31: Elbi: Democratise philanthropy (social networking; free to download, in-app purchases)

1/30: Capitol Call: Find and contact your legislators (news; free to download, in-app purchases)

1/29: Khan Academy: Instruction and learning videos (education;  free to download, in-app purchases)

(no App of the Day on Sundays) 

1/27: Mimo  Learn to code  (education; free to download, in-app purchases)

1/26: Freshly: Meal kits (food & drink; free to download, in-app purchases)

1/25: Udacity: Nanodegree programs (education; free to download, in-app purchases)

For more, check out our public App of the Day tracker.

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