Apple reports record quarter, stocks plummet

Sales of Macs down 18 per cent, iPad sales up nearly 50 per cent, iPhone sales up 30 per cent.

Apple's released its quarterly earnings yesterday, and they weren't great. Although, in Apple's case, "not great" still means that revenue grew 18 per cent year on year to $54.5bn, profits hovered at $13.1bn, and its financial year 2012 is the largest corporate earnings year in history. Twitter loves to talk about first-world problems — this is "biggest-company problems" of the highest order.

Sales of Macs were down 18 per cent, but iPad sales had grown by nearly 50 per cent, and iPhone sales by almost 30 per cent. The iPhone 5 was the best-selling smartphone worldwide, and the astronomical mark-up on it — it generates a 55 per cent profit margin for the company — means that it will be jealously guarding that market for some time.

Still, the narrative is that Apple's had a bad quarter (because they really ought to own a small country by now, and their failure not to do so is frankly embarrassing), and so in after-hours trading, stocks were down 10 per cent.

The diagnosis seems to be that a hefty chunk of the decoupling of revenue and growth was down to the much-reduced profit margins of the iPad Mini. Apple's profit from sales of the 7 inch iPad is much lower than it gets from sales of the full-size one (although that hasn't stopped people arguing that it's making a mistake to charge so much for it, or not to put a vastly expensive retina display on it), so to the extent that its growth is because of entering that new market, its profit share will fall.

Worse for the company is that there is some evidence the mini is cannibalising sales of the full-size iPad. Certainly, respected bloggers like Marco Arment and John Gruber report preferring their minis to their old iPads, and they would seem to be the target market for the full-power device.

But if its problems stem from a growing presence in low-margin markets, then it's rather odd that the proposed solutions are… growing their presence in low-margin markets. Apple regularly comes under pressure for their low and declining share of the smartphone market — currently at around 20 per cent — with the implication that its strategy of chasing profit over raw sales is wrong. Reports that the company is attempting to build a low-price iPhone which would debut in late 2013 suggest that the company is taking the recommendation to heart.

But it seems that if it does bring out a successful low-margin entry level device, it will be slammed for declining profit; if it doesn't, it will be slammed for declining market share. Meanwhile, whatever the company does, it will be raking money in hand-over-fist. Maybe the problem lies with the people doing the slamming?

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Show Hide image

France’s burkini ban could not come at a worse time

Yet more legislation against veiled women can only further divide an already divided nation.

Since mayor of Cannes David Lisnard banned the full-body burkini from his town’s beaches, as many as 15 French resorts have followed suit. Arguments defending the bans fall into three main categories. First, it is about defending the French state’s secularism (laïcité). Second, that the costume represents a misogynistic doctrine that sees female bodies as shameful. And finally, that the burkini is cited as a threat to public order.

None of these arguments satisfactorily refute the claims of civil rights activists that the bans are fundamentally Islamophobic.

The niceties of laïcité

The Cannes decree explicitly invokes secular values. It prohibits anyone “not dressed in a fashion respectful of laïcité” from accessing public beaches. However, the French state has only banned “ostentatious” religious symbols in schools and for government employees as part of laïcité (the strict separation between the state and religious society). And in public spaces, laïcité claims to respect religious plurality. Indeed, the Laïcité Commission has tweeted that the ban, therefore, “cannot be based upon the principle of laïcité”.

While veils covering the entire face such as the burqa or niqab are illegal, this is not to protect laïcité; it is a security matter. The legal justification is that these clothes make it impossible to identify the person underneath – which is not the case for the burkini.

 

By falling back on laïcité to police Muslim women in this way, the Cannes authorities are fuelling the argument that “fundamentalist secularism” has become a means of excluding Muslims from French society.

Colonial attitudes

Others, such as Laurence Rossignol, the minister for women’s rights, hold that the burkini represents a “profoundly archaic view of a woman’s place in society”, disregarding Muslim women who claim to wear their burkini voluntarily.

This typifies an enduring colonial attitude among many non-Muslim French politicians, who feel entitled to dictate to Muslim women what is in their best interests. Rossignol has in the past compared women who wear headscarves through choice to American “negroes” who supported slavery.

Far from supporting women’s rights, banning the burkini will only leave the women who wear it feeling persecuted. Even those with no choice in the matter are not helped by the ban. This legal measure does nothing to challenge patriarchal authority over female bodies in the home. Instead, it further restricts the lives of veiled women by replacing it with state authority in public.

Open Islamophobia

Supporters of the ban have also claimed that, with racial tensions high after recent terrorist attacks, it is provocative to wear this form of Muslim clothing. Such an argument was made by Pierre-Ange Vivoni, mayor of Sisco in Corsica, when he banned the burkini in his commune. Early reports suggested a violent clash between local residents and non-locals of Moroccan origin was triggered when strangers photographed a burkini-wearing woman in the latter group, which angered her male companions. Vivoni claimed that banning the costume protected the security of local people, including those of North African descent.

Those reports have transpired to be false: none of the women in question were even wearing a burkini at the time of the incident. Nonetheless, the ban has stood in Sisco and elsewhere.

To be “provoked” by the burkini is to be provoked by the visibility of Muslims. Banning it on this basis punishes Muslim women for other people’s prejudice. It also disregards the burkini’s potential to promote social cohesion by giving veiled women access to the same spaces as their non-Muslim compatriots.

Appeals to public order have, occasionally, been openly Islamophobic. Thierry Migoule, head of municipal services in Cannes, claimed that the burkini “refers to an allegiance to terrorist movements”, conveniently ignoring the Muslim victims of recent attacks. Barely a month after Muslims paying their respects to friends and family killed in Nice were racially abused, such comments are both distasteful and irresponsible.

Increased divisions

Feiza Ben Mohammed, spokesperson for the Federation of Southern Muslims, fears that stigmatising Muslims in this way will play into the hands of IS recruiters. That fear seems well-founded: researchers cite a sense of exclusion as a factor behind the radicalisation of a minority of French Muslims. Measures like this can only exacerbate that problem. Indeed, provoking repressive measures against European Muslims to cultivate such a sentiment is part of the IS strategy.

Meanwhile, the day after the incident in Sisco, riot police were needed in nearby Bastia to prevent a 200-strong crowd chanting “this is our home” from entering a neighbourhood with many residents of North African descent. Given the recent warning from France’s head of internal security of the risk of a confrontation between “the extreme right and the Muslim world”, such scenes are equally concerning.

Now more than ever, France needs unity. Yet more legislation against veiled women can only further divide an already divided nation.

The Conversation

Fraser McQueen, PhD Candidate, University of Stirling

This article was originally published on The Conversation. Read the original article.