“I don’t even know what it says.”
Carl Icahn just appeared on CNBC’s Halftime Report and said, basically, he can’t even with The Wall Street Journal’s report that Apple is not making a TV.
On Monday night, WSJ’s Daisuke Wakabayashi reported that Apple has “quietly shelved” plans to make a TV.
Earlier in the day, Carl Icahn published a letter to Apple CEO Tim Cook, which among other things argued the company’s stock was undervalued because of its cash position and its future pipeline of products, including a television.
Apple had searched for breakthrough features to justify building an Apple-branded television set, those people said. In addition to an ultra-high-definition display, Apple considered adding sensor-equipped cameras so viewers could make video calls through the set, they said.
Ultimately, though, Apple executives didn’t consider any of those features compelling enough to enter the highly competitive television market, led by Samsung Electronics Co. Apple typically likes to enter a new product area with innovative technology and easier-to-use software.
Icahn’s confusion surrounding Wakabayashi’s report, however, was a line from the report itself, where Wakabayashi acknowledged that Cook has said in the past that he has a “grand vision” for the television.
“The headline [of the WSJ article], I think, is relatively misleading,” Icahn told CNBC’s Scott Wapner.
Moreover, Ichan still thinks there will be an Apple TV. “I read the article,” Icahn said, “not what Tim Cook said or didn’t say, but the whole thing is ridiculous … I’m not backtracking in anyway. I believe they will do a TV. That’s my belief.”
In related Apple TV news, Piper Jaffray Apple analyst Gene Munster finally threw in the towel on Apple TV, admitting that despite his own insistance that Apple will build a TV, the WSJ report has ended this phase of his Apple coverage.
“Based on this report, we no longer expect a television to launch indefinitely,” Munster wrote.
In his letter to Tim Cook on Monday, Icahn said that Apple is worth $US240 per share. Icahn’s maths to get to this number involves making some earnings assumptions, adding a higher multiple to Apple shares, and then adding back the cash the company is sitting.
But long story short, Icahn added $US0.87 worth of earnings per share due to Apple TV in 2016.
And so using his maths, which we broke down here, Apple shares are now worth $US224.78 per share.
Apple shares were trading at around $US130 on Tuesday afternoon.