Apple posts solid Q3 profit, but iPhone sales don't wow

Apple posts solid Q3 profit, but iPhone sales don't wow
Apple posted good, but not great results in the quarter ahead of its anticipated iPhone launch. The Cupertino, Calif., electronics giant on Tuesday reported earnings in the fiscal third quarter that topped Wall Street expectations, but iPhone sales, revenue results, and fourth-quarter guidance weren't quite the blowout analysts had hoped for. It also reported disappointing iPad sales for the second period in a row. Apple CEO Tim Cook didn't mention the iPad during his comment in the company's press release but said "revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters."For the current quarter, which ends in September, Apple expects revenue of $37 billion to $40 billion, slightly less than the $40.44 billion projected by analysts. It also anticipated a gross margin of 37 percent to 38 percent. Analysts often look at fiscal fourth-quarter guidance as a sign for what sort of iPhone launch Apple anticipates, and it appears the company is staying conservative. The iPhone, which contributes to more than half of Apple's total revenue, serves as the lynchpin to its overall growth, particularly as the market awaits the widely speculated iWatch and as the iPad struggles against lower-cost rivals and larger phones. Apple iOS 8 at WWDC 2014 (pictures)See full gallery1 - 4 / 17NextPrevThe fiscal third quarter is an "off period" in between product announcements. Many market watchers expect Apple in September to introduce two new iPhone 6 models with display sizes of 4.7 and 5.5 inches, though some recent reports speculate one device could be released at a later date. Apple has asked manufacturing partners to produce 70 million to 80 million units of its larger screen iPhones by Dec. 30, The Wall Street Journal reported Monday. That's up from its initial order of 50 million to 60 million units of the iPhone 5S and 5C, the paper said."Tonight's conference call is of much less significance than past quarterly reports, as we believe investors are more focused on the 'Fab Fall' launch," said Cantor Fitzgerald analyst Brian White.Apple sold 35.2 million iPhones during the fiscal third quarter, helping the device remain its biggest moneymaker. Analysts, on average, had expected Apple to sell 35.9 million iPhones in the period, according to a calculation by Fortune. Apple sold 31.2 million iPhones in the year-ago period.It also sold 13.3 million iPads in the most recent quarter, down 9 percent from a year ago. Analysts expected the company to sell about 14.4 million iPads, Fortune said.Apple in June split its stock 7-for-1 to make its shares more accessible to a larger number of investors. The move caused the company to adjust its previous financial results for comparison. Before the split, shares were trading around $650, and the stock, when adjusted for the split, has jumped about 25 percent since Apple announced the move during its last earnings report in April. Shares closed Tuesday at $94.72 and slipped half a percent to $94.24 in after-hours trading.See alsoWWDC set the stage. Now Apple needs to deliverWith no 'amazing' devices due at WWDC, Apple's Tim Cook feels the heatApple WWDC 2014: Heavy on apps, services, and tweaksApple’s iPad sales are not so magical after allApple CEO defends iPad sales, but admits softer demandApple's results have been fueled by the iPhone for the past several years, but the company is facing more competition than ever before. Samsung and others are pressuring the company at the high end, while Apple is largely missing out on the low end of the market. That's a big concern as more and more mobile sales come from emerging markets like China, where inexpensive phones from companies such as Huawei and ZTE are popular.So far, though, Apple's customers have remained loyal, and it's attracting buyers despite offering devices that are nearly a year old. In April, Apple said it had nearly 800 million iTunes accounts, a number that Cook described at that time as "staggering." About a year earlier, Apple announced it had 575 million accounts.By comparison, Samsung earlier this month said its second-quarter operating profit likely fell about 24 percent from the previous year to 7.2 trillion won ($7.12 billion). It also said sales likely totaled 52 trillion won, a 9.4 percent decline. Both figures fell short of analysts' projections for the June period. The results would be Samsung's worst in about two years and the third straight quarterly profit decline. Samsung didn't disclose how many devices it sold, but it blamed its weak results on a slowdown in overall smartphone market growth and a strong Korean won.Even though Apple's iPhone sales have been holding up, the pressure is on for Apple to release new devices that prove it still has that magic touch. Cook has promised several times over the past year that Apple would enter "exciting new product categories" in 2014. And Eddy Cue, head of iTunes and the man behind Apple's $3 billion acquisition of headphone and streaming service Beats, in May upped the ante by boasting that the consumer electronics giant is working on its "best product pipeline in 25 years." Until those items hit the market, Apple will need to keep pushing its current devices.Michael Obuchowski, Apple shareholder and chief investment officer of Merlin Asset Management, called the fiscal third quarter "pretty amazing, considering the competition is shipping better phones every few months.""They are able to squeeze more out of their current devices -- after all that is what Tim Cook is best at," he told CNET News. Apple earlier this year started selling the iPhone through China Mobile, the world's biggest wireless carrier. And in September, it introduced two new versions of the iPhone for the first time ever, including the less-expensive but more colorful iPhone 5C. Apple also rolled out the new iPad Air and iPad Mini with Retina Display the following month.Apple iPad AirSee full gallery1 - 4 / 14NextPrevOne weak area for Apple has been the iPad. Sales of the tablet fell short of analyst expectations in the fiscal second quarter, which Apple blamed on the number of devices held in channel inventory (which means it's either sitting in stores or on trucks). But even after adjusting for inventory differences, iPad sales still declined by more than 3 percent, analysts said. And the drop continued in the fiscal third quarter. Apple likely has been hurt by a few factors that could continue to plague iPad sales. It's easy for people to pass older tablets to relatives or friends when they upgrade. People also don't have the two-year upgrade incentive that smartphones get from wireless carriers, and Apple hasn't made big enough changes to the iPad to compel even their most ardent fans to immediately buy the newest model. In addition, most people who crave a tablet likely already have one, and Apple is going up against dozens of new, inexpensive devices that run Google's rival Android mobile operating system.Cook on Tuesday said while iPad sales fell short of analysts' expectations, they met Apple's internal projections. He again blamed the weakness on inventory issues but also said demand was soft in some regions, such as the US and Europe. However, Cook said the iPad "did extremely well" in the so-called BRIC countries of Brazil, Russia, India, and China. In China alone, iPad sales rose in the 50 percent range, and sales jumped in the 60 percent range in the Middle East. Cook said he's "bullish" about Apple's prospects in the tablet market. "We still feel the category as a whole is in its early days, and there's still significant innovation that can be brought to the iPad and we can do that," he said.Cook expects Apple's recently announced partnership with IBM to also help iPad sales. The two companies will work together on pushing Apple devices and iOS apps with business users. "I honestly believe the opportunity is huge," Cook said.Apple's iPad Air hasn't sold as well as hoped in recent months.Josh Miller/CNETMeanwhile, Apple reported Mac unit sales rose 18 percent to4.4 million. Analysts polled by Fortune expected sales of 3.9 million units. Apple now generates less than 15 percent of its total revenue from Macs, but the devices help Apple build its ecosystem. The company at times has posted strong Mac sales in periods the rest of the PC market has struggled, but it also has had troubles of its own in recent quarters.Cook on Tuesday, though, said the Mac boosted Apple's results, and it saw strong sales in some regions weak for other PC makers. The US, for instance, was a "very, very" strong market for the Mac in the quarter, he said.iPod sales, which have been falling sharply in recent quarters, actually increased sequentially to 2.9 million from 2.8 million in the fiscal second quarter. However, they still tumbled 36 percent from the same period a year ago. For the fiscal third quarter, Apple posted earnings of $7.75 billion, or $1.28 a share, up from $6.9 billion, or $1.07, in the year-earlier period. Per-share earnings were better than the $1.23 projected by analysts.Sales for the period ended June 28 rose 6 percent to $37.4 billion, in line with what Apple estimated but a little lighter than analysts' forecast. Apple in April had projected third-quarter revenue of $36 billion to $38 billion. Analysts, meanwhile, estimated revenue would total $37.99 billion.Apple's gross margin rose to 39.4 percent from 36.9 percent in the year-ago quarter. The company in April projected a gross margin of 37 percent to 38 percent. Apple's gross margin, a measure of sales after removing costs like manufacturing, has fallen since its high of 47.4 percent in early 2012 as customers opt for lower-cost devices.But RBC Capital Markets analyst Amit Daryanani called the margins in the third quarter "impressive."Updates, 2 p.m., 3:20 p.m., and 4:30 p.m. PT: Adds additional details and comments from conference call throughout.


Mac OS X Lion first take- Apple's next big cat

Mac OS X Lion first take: Apple's next big cat
The next feature in Lion will be the Home Screen feature called the Launch Pad. This looks like a merge between the current Dashboard and the iPhone home screen, and it will show you the available applications on the system, which can be launched with a single click. Like the current Dock, you can create folders for applications, but the larger screen real estate allows for more to be viewed at once, and be better organized not only in folders but also on multiple screens. This addition makes us wonder whether or not Apple is going to be replacing the Dock with this new feature. Beyond home screens, as with iPhoto and recent releases of Safari, Apple is concentrating on full-screen and has options for supporting applications that can be viewed in full screen, allowing users to take their own full workspace but also be flicked off the screen with a multitouch gesture. Apple is also working on implementing auto-save features for applications in OS X Lion, which has been a lacking option for many applications including Apple's own, since the implementation has been up to individual developers. This should also be a welcomed addition to the program. Finally, Apple is trying a new approach to Expose, Dashboard, Spaces, as well as the new full-screen application support in Lion, which is to merge them all into a single view called Mission Control. This will show all running applications, with individual windows for each application being lumped into stacks called "clusters." This will likely be a huge relief for those who keep many windows open at once and get lost when Expose is invoked. It might have been nice to see a cover-flow feature implemented in Expose, but the clusters view looks like it will suffice. Mission Control allows you to see all running applications on your Mac, lumping respective windows into "clusters" and showing full-screen applications in a separate section along the top.AppleWhen Mission Control is invoked, not only are applications lumped together, but full-screen applications are shown in a separate section, allowing you to quickly switch between them as well. It looks like Apple is ironing out some of the clutter that can happen in multitasking environments, and Mission Control seems so far to be a good enhancement to previous multitasking management options. These new features in Lion do bring up a few unanswered quiestions, such as what will happen to the Dock, or the Command-Tab switching abilities prior versions of OS X? Additionally, since many of these implement multitouch gestures, will they require the use of a multitouch input device? Many systems that should support Lion have limited multitouch options, so hopefully Apple will implement options for these systems. Apple has just given us a preview release of Lion, and many of these answers will come over the next few months as Apple rolls out new information about Lion. The OS is on track to be released sometime in the summer of 2011, and if Apple sticks to its past reputation, that means it will likely be released in late September or early October. Meanwhile current and future information about OS X 10.7 "Lion" should be available on Apple's "OS X Lion" Web page.Questions? Comments? Have a fix? Post them below or e-mail us!Be sure to check us out on Twitter and the CNET Mac forums.


Apple's in-app purchase settlement faces approval

Apple's in-app purchase settlement faces approval
SAN JOSE, Calif. -- The settlement that will give some iTunes customers a refund for in-app purchases made by minors marched one step closer to approval today.The two sides met in a federal courthouse here to hash out some final details before it's passed along to a judge for approval early next week.As part of the proposed settlement, Apple will be required to pay out $5 in iTunes creditto those who say purchases were made on their device by a minor, and without them being aware of it. The company plans to send notices to more than 23 million iTunes account holders who bought something from within one of of the "qualified apps." During today's hearing, Apple attorneys noted that the company believes the actual number of affected customers to be much smaller, given that the purchases would have needed to been made by minors, and without permission. The company also said that the "vast majority" of purchases were under $5. Customers who spent more than $30 or who no longer have an iTunes account can choose to get a cash refund, as long as they meet a handful of requirements, including filling out a form that details what apps the charges originated from. U.S. District Court Judge Edward Davila today raised some concerns with how much effort would be needed by consumers to track down purchase information. "It seems like you're asking the plaintiffs to do a lot,"Davila told both sides, pointing to the fact that users would need to seek out their purchase history in the event that they were filing for something besides the $5 iTunes gift card that will be offered. "Apple has this information," he continued. "They're in the best position to retrieve this information."Apple's attorney countered by noting that users could quickly find their entire iTunes purchase history, as well as search for the apps in question, using an online tool that will be included on the settlement Web site when it goes live. Related stories5-year-old sorry for racking up $2,500 iPad bill in 10 minutesShould Apple countersue parents for neglecting their kids?Parent sues Apple for in-app buying policyJudge Davila also raised concerns about the plan to send out notices digitally, saying the U.S. postal service could benefit with the business. Both sides successfully made the case that the digital nature of the in-app purchase issue would bring about a high response by e-mail, and that notices would be sent by mail for any addresses that bounced.The 2011 suitstemmed from parents who complained that it was far too easy to buy digital goods in apps and games without the need to re-enter an Apple ID password. In practice, this meant that a parent could download a free or paid title using their password, then the child (or someone else) could proceed to make purchases without those credentials, as long as it was within a certain time period.Apple changed that behavior as part of a system software update in March 2011, but not before some parents were hit with massive bills. A report from the BBC earlier today noted that it's still possible to rack up charges, given the case of a 5-year-old from southwest England who spent more than $2,500 in purchases on his parents' iPad without the password, an amount that was reportedly refunded by Apple. The parties plan to file a finalized version of the settlement on Monday. A final decision on the settlement from Davila is expected in the coming weeks.


Super 8 app shoots awesome home movies

Super 8 app shoots awesome home movies
Now this is how you do a movie tie-in.Super 8, a new app named for the eponymous J.J. Abrams flick that opens June 10, isn't some lame collection of teaser clips or a slapped-together game. Rather, it's a full-featured video recorder designed to emulate Super 8 film cameras.In other words, it's like a Wayback Machine for your iPhone and iPad 2, allowing you to record home movies with a decidedly '60s flair. The only thing it's not is new: apps like 8mm Vintage Camera and Silent Film Director have offered this capability for a while.Ah, but Super 8 is free--and it's mighty slick. The entire interfaced is modeled after a Super 8 case, complete with vintage instruction manual, Super 8 "cassettes" (i.e. your library of recordings), and the camera itself.The camera comes with your choice of seven photorealistic "lenses," including color, sepia, negative, and even infrared. For any of them you can toggle a scratch-and-dirt overlay and a frame-shake effect; the latter literally makes the frame jump based on movement of the iPhone. (This effect is probably incomprehensible to anyone who's never watched old home movies--but it's seriously cool for those of us who have.)After you've shot some "film," you can organize (but not edit) your clips, then add titles and credits, insert an authentic-looking Super 8 film leader, and "develop" the movie for viewing with Super 8's "projector." (The attention to detail here is terrific: you have to pull down the "screen," and there are Reverse and Forward buttons you can hold to shuttle the playback in real-time.)When you're done, you can e-mail your movies to friends or copy them back to your PC via iTunes. Alas, there's no way to share via Facebook or YouTube.That's about the only thing wrong with this clever and entertaining app. It may lack a few of the features found in its aforementioned predecessors, but it's really a blast to play with--and you can't beat the price. For a limited time, Super 8 is free.


Is dynamic range compression destroying music-

Is dynamic range compression destroying music?
Dynamic range compression isn't new, it's been used by recording, mixing, and mastering engineers for many decades. A little bit of compression is fine, but over-compression can sound downright ugly. Most of today's music, whether it's on LP, CD, the radio or iTunes is over-compressed. Most remastered CDs are over-compressed.Before we go any further, I'm not referring to the lossy compression used in MP3s, or lossless compression used in Apple Lossless. They've got their own set of problems, but dynamic range compression is a very different predicament. To the casual listener compression can sound "good," mostly because it makes the music seem louder and punchier, and once music's natural soft-loud dynamic shifts are squashed flat music is easier to hear in noisy environments like cars or over iPods. Compression reduces the need to adjust playback volume--because it's always nearly the same volume--loud.Engineers worry that if they don't compress their recordings the music would seem too soft and low. That is, if a music listener went from really loud, compressed music to quieter, uncompressed music they probably wouldn't like uncompressed music--unless they turned it up! That way they would hear the music's natural soft-loud dynamics.Unfortunately, that's not an acceptable scenario to most engineers or record labels. They're addicted to over-compression, it's a hard habit to break. But the unnatural onslaught of compressed sound obliterates musical nuance, delicacy and emotional power. Compression's loud-all-the-time nature sucks the life out of music.Here's a great video that demonstrates the evils of compression.Well, it's one thing to describe the ill-effects of over compression in words; this excellent "Loudness War" YouTube video adds a visual perspective to make compression's destructive properties easier to understand. Like most things on YouTube there's a bunch of videos that explore the evils of compression, but "Loudness War" is one of the better ones.


Apple wins patent for 4G MacBook connectivity

Apple wins patent for 4G MacBook connectivity
A new patent Apple has been awarded seems to hint that the company is considering bringing 4G connectivity to its MacBook line.The U.S. Patent and Trademark Office (USPTO) today published a patent Apple won related to the way in which a 4G antenna is housed in a laptop. The invention describes how a 4G antenna can be hidden in a "conductive cavity" located behind the upper bezel around the computer's screen.Apple argues that the placement of the antenna at the top of the computer can enhance the likelihood of securing a strong signal, though the company did leave it open to placing the antenna in other cavities around the device.Patently Apple was first to report on the patent.Related storiesThe wait for a Mac with 3G/4G continuesApple wants its 3G MacBook prototype backApple secures 25 patents, including iMac, iPad Smart CoverApple wins patent for iTunes Store user interfaceFor years now, rumors have suggested that Apple is at least considering bundling mobile connectivity with its notebook line. Last year, a North Carolina man came across an Apple prototype notebook featuring an antenna that allowed users to connect to 3G networks. Soon after trying to sell it on eBay, Apple demanded its prototype back, prompting some to wonder if mobile connectivity would indeed make its way to its MacBook line.Although the patent might lend some hope to those who believe Apple will launch 4G connectivity in the MacBook, patents are by no means a smoking gun. Major companies like Apple file for a host of patents every year, and in many cases, never end up using the technology they develop. This could very well end up in that bin.Beyond that, Patently Apple found that the iPhone maker secured a host of other patents today, including one related to event processing of Web pages in iOS. Apple also was awarded six design patents related to an iPad keyboard dock, the iPad Nano's display module, and others.Apple declined CNET's request for comment on the patent.


Apple wins design patents for slide-to-unlock, original iPhone

Apple wins design patents for slide-to-unlock, original iPhone
Apple was granted design patents today for the contentious slide-to-unlock user interface asset and the design for the original iPhone. The U.S. Patent and Trademark Office approved Apple applicationNo. D675,639 for "ornamental design for a display screen or portion thereof with a graphical user interface," which includes illustrations of the familiar horizontal bars with rounded corners found at the bottom of locked iOS screens since the original iPhone's debut in 2007.Slide-to-unlock functionality has become a major sticking point with handset makers. Apple, which was granted a patent for the feature in 2011, has charged both Motorola and Samsung with violating patents related to the functionality.Apple pressed the patent against Samsung's Galaxy Nexus in January 2012, only to discover that Google had filed a patent application in 2010 that described a manner in which users interact with a smartphone -- or PC -- to unlock the device and perform at least one command.An Apple patent infringement lawsuit filed in Germany against Motorola over the function was backburnered last March. The judge in that case said he wanted to wait until the German Patent and Trademark Office heard Apple's case before his court continued.Illustration accompanying Apple's design patent for the iPhone's appearance.Apple Apple was also granted approval for design patent No. D675,612, which covers the "ornamental design of an electronic device" -- specifically the rounded corners found on the iPhone. The design feature is key to Apple lawsuits against Samsung. A judge with the U.S. International Trade Commission, a federal agency with the power to block imports of devices found to infringe on U.S. patents, ruled last October that Samsung had violated Apple's iPhone design patent covering the look and feel of the smartphone's exterior. That ruling is currently under review, and a decision is expected next month.(Via PatentlyApple)


Apple wins 41 new patents, including hand-gesture controls

Apple wins 41 new patents, including hand-gesture controls
Apple has won 41 new patents from the U.S. Patent and Trademark Office, including one that could eventually deliver Kinect-like functionality to Macs.According to Patently Apple, which obtained a copy of the patents Apple was awarded on Tuesday, the company has won intellectual property that will allow it to transfer user input from a keyboard and mouse to sensors that would be placed around a display.Related storiesPatents suggest stylus; Mode-based interface customizationKodak patent complaints target Apple, RIMCNET News Daily Podcast: Tech industry opens wallets for HaitiApple files patents to manage home energyApple seeks ban on U.S. Nokia importsThe technology, which in some ways dovetails on the technology found in Microsoft's Kinect, will automatically determine if a person is up close enough to a screen to use the mouse and keyboard or if they've moved away. In the event they've moved away, the computer automatically switches from mouse control to gesture control.Interestingly, Apple points to the technology's use in both desktops and televisions, further prompting questions over whether the company has plans for gesture control to be baked into any television it might be working on. The feature could ostensibly also find its way to iPhones and iPads.When gesture control is entered, the user can perform all kinds of actions, according to the patent, including scrolling, zooming, and selecting items. The option can work across the operating system and active applications, according to the filing.


Apple wins 39 new patents on Smart Cover, pinch-to-zoom

Apple wins 39 new patents on Smart Cover, pinch-to-zoom
Apple has won dozens of new patents across a wide array of technologies, including how pinch-to-zoom works in software and its iPad Smart Cover's attachment features.Perhaps the most important patent is one that relates to how a touch screen reacts to a person's thumb and index finger during a pinch-to-zoom gesture. Sensors within the touch display change in size and shape based on the gestured detected by those fingers. If a thumb and forefinger start to move together, the sensory panels change around that. When they move apart, the sensors once again adapt. Other sensors around the screen, however, are not modified.The technology allows for pixels to change in size, as well, essentially creating more accurate representation of the person's touch-screen gesture.The Patently Apple blog site was first to report on the patents.All told, Apple was awarded 39 patents today. According to Patently Apple, three of those patents related to the way in which the iPad's Smart Cover attaches to the tablet. All three of those patents describe a method in which a magnet is attached to the slate to protect its screen and provide other benefits.The other patents Apple won today are decidedly less interesting. They describe everything from automatic audio adjustments to integrated noise reduction technology. Still, as the last few years of lawsuits have shown, they sometimes come in handy in legal battles.


Apple will unveil new iPad Air on Sept. 9, says analyst

Apple will unveil new iPad Air on Sept. 9, says analyst
Apple may not wait until October to introduce its new iPad Air. At least, that's the take from one analyst. In an investors note from KGI Securities released Thursday and picked up by AppleInsider, analyst Ming-Chi Kuo said he believes Apple will show off its new iPad Air at next Tuesday's launch event packed with several key new features. If true, that would mean a departure for Apple, which typically unveilsits new iPad in October. That would also lead to a crowded schedule as Apple is also expected to unveil the 4.7-inch and 5.5-inch editions of the iPhone 6 and potentially a wearable device on the same date. Would Apple really cram in all of these product announcements on the same day? It seems unlikely, but Kuo has been on the money with many of his past predictions. Feature-wise, the next iPad Air will adopt the same Touch ID fingerprint sensor that Apple added to the iPhone 5S last year, according to Kuo. That seems like a safe prediction as Apple would certainly want to expand the security feature to its popular tablet. Related storiesPhablets are going to be bigger than tablets, laptops, IDC saysHow to prepare your iPhone or iPad for iOS 8Apple iPhone 6 event officially set for Sept. 9 Further, the analyst said he believes the new iPad Air will come with an anti-reflective screen coating, a new gold casing, a fully-laminated touch panel, and a beefier A8 processor, AppleInsider said. But iPad Mini buyers looking for big changes in the next edition may be disappointed, at least based on Kuo's crystal ball. The analyst believes the new Mini "may" adopt the Touch ID sensor but might not see many other major improvements.Responding to a request from CNET, an Apple spokeswoman declined to comment on Kuo's prediction. CNET will also host a live blog of Apple's launch event on Tuesday, September 9. (Via AppleInsider)


Your Top Three: Best Comedy Sequels

Your Top Three is a series here at Movies.com where we choose a topic and you give us your top three picks. Currently Anchorman 2: The Legend Continues has a better Rotten Tomatoes score than the original. That;s weird, because most reviews I;ve seen say it;s not as good as the first one (I sort of agree but don;t feel I can properly say so for a few years). It would be a big deal if the new sequel were actually better than Anchorman: The Legend of Ron Burgundy, because it;s quite rare we see a comedy sequel improve upon its precursor. It;s rare enough we get a good comedy sequel at all. Unless maybe we go back to the classics, but even then we saw dwindling quality in sequels to The Thin Man and Father of the Bride. Not terrible, but lesser. I haven;t seen Harold Lloyd;s sound-era sequel The Sin of Harold Diddlebock -- in fact I only recently heard of it -- but there;s no way it;s as good as the movie it follows, silent comedy classic The Freshman. Many old comedy franchises were basically just sitcoms before TV existed, and they were about as up and down as television comedy series would be. I;m not sure if some comedy sequels should count. Gremlins 2: The New Batch, for instance, is a hilarious sequel to a movie that isn;t quite a comedy. We may as well count Superman II in that case, as well as many modern superhero and action movies. Back to the Future Part II meanwhile is technically a comedy sequel, but we tend not to recognize it as such. And are Abbot and Costello movies connected in a way that qualifies them as sequels? Do animated films work? Do the Toy Story sequels count? One thing I want to point out before getting to my selections is something interesting I just noticed. The Muppets movies have taken us to California and England and another was set on Christmas. Same with the Vacation movies. Why haven;t they completely matched up? We obviously need a Vegas Muppetsmovie and a NYC Vacation movie. My Top Three Favorite Comedy Sequels: 1. After the Thin Man One of the few sequels to better the original, and in the case of The Thin Man, that wasn;t an easy task. Yet the second pairing of William Powell and Myrna Loy as Nick and Nora Charles was a more straightforward detective story, which also added to the character development of this alcohol-loving couple based on a work by Dashiell Hammett. Plus it gave us one of James Stewart;s first great appearances.  2. The Great Muppet Caper I grew up favoring this second Muppet movie over the first, partly because I was oddly a humongous Charles Grodin fan as a young child (though that originated with the combo of this and the same year;s The Incredible Shrinking Woman). I don;t know that it tops The Muppet Movie as a whole, but it;s also totally different in a way the subsequent installments haven;t figured out how to do. It;s almost not a follow-up unless you really think about it, and then it;s a weird sort of sequel.  3. Christmas Vacation I;ve thought of including some other sequels that thankfully went in a new direction from their precursor(s), such as Harold and Kumar Escape from Guantanamo and Bill and Ted;s Bogus Journey, but neither is also as hilarious as this third Vacation movie. This time the Griswold family don;t go on a trip, which gives this installment a freshness that the go bigger sequel European Vacation (as much as I do enjoy it) didn;t have. I think of all the Vacations, I laugh the hardest still with this one.   Your Picks (the top 3 being Christmas Vacation,A Shot in the DarkandClerks II):    Naked Gun 2 1/2, Harold and Kumar 2, NL Christmas Vacation. RT “@thefilmcynic: POLL: What are your top 3 comedy sequels?” — FirstTimeWatchers (@1sttimewatchers) December 20, 2013    @thefilmcynic Christmas Vacation, Shrek 2, Clerks 2 — Rob X (@Robxisabeast) December 20, 2013    A Shot In The Dark, Goldmember, Xmas Vacation @thefilmcynic: POLL: What are your top 3 comedy sequels?” — allflicker (@allflicker) December 20, 2013    @thefilmcynic Christmas Vacation, Grumpier old men & Clerks 2 — Aaron Jungling (@Ajungling) December 20, 2013    @thefilmcynic nah. oh god book 2, oh god you devil, fierce creatures — john lichman (@jlichman) December 20, 2013    @thefilmcynic Three is easy - A Shot in the Dark, Christmas Vacation, & Toy Story 2 — Kyle Ailinger (@KAilinger) December 20, 2013    @thefilmcynic One would definitely be A SHOT IN THE DARK, closely followed by THE PINK PANTHER STRIKES AGAIN. — randomcha (@randomcha) December 20, 2013    @thefilmcynic The Spy Who Shagged Me, Ace Ventura: When Nature Calls, and yes, Anchorman 2. — Logan Noble (@logan_noble) December 20, 2013    @thefilmcynic #1 is ;Bill & Ted;s Bogus Journey;, one of the best sequels of all time. — Don Swaynos (@donswaynos) December 20, 2013    @thefilmcynic HOT SHOTS PART DEUX — Point de vues (@Pointdevues) December 20, 2013