THE APPLE INVESTOR: Apple Needs Verizon For The iPhone To Dominate

iPhone verizon

AAPL Up In Strong Market
After losing 6% on Friday, Apple stock is up strong today at $254, or 7%. iPad pre-orders internationally go on sale today. Potential future catalysts include monthly NPD data (Mac / iPod business); international launch of the iPad on May 28; and the launch of the next generation iPhone (likely June 7 at the Worldwide Developers Conference).  The stock trades at 21x estimated fiscal-year 2010 EPS and 11x Enterprise Value / Trailing Twelve Months Free Cash Flow.

Apple Needs Verizon Which Has All The Leverage Now Thanks To Android (Business Insider)
The balance of power in Apple’s relationship with Verizon has shifted again. Now it’s Apple that needs Verizon more than Verizon needs the iPhone. Apple has watched as Android has gained share quickly and significantly. Verizon, the biggest U.S. carrier with 80 million loyal customers, is playing a big role. Google’s phones are selling well now that Verizon is carrying two good Android-based phones (Droid and Incredible). While not as good as the iPhone 3GS (or the new iPhone launching this summer), these phones are “good enough” for Verizon users. For Apple to give its U.S. iPhone business a jolt, it needs to ditch its exclusive with AT&T and maximise distribution.

According to IDC, Apple Is Creeping Up On Research In Motion’s Smartphone Market Share (Seeking Alpha)

According to IDC data, Apple gained 5 percentage points to 16% of the smartphone market share in the first quarter 2010, up from 11% last year. That is a year over year increase of 132%. Nokia held its market share globally in the first quarter while RIM can hear Apple knocking, only 3 points of market share behind Apple. HTC gained thanks to Google and an arsenal of Android devices. Motorola improved market share as well with the launch of the Droid.

Apple Spends Half Of What Microsoft Does On Ads And They Actually Pay Off (Business Insider)

According to Kantar Media, Apple spends half as much on ads as Microsoft. Philip Elmer-DeWitt at Fortune points out that Apple actually spends relatively little on advertising for a company its size. As a percentage of revenue, Apple spends less than half on ads that eBay does but no where near the little amount Google spends.

Apple Is About To Officially Kill Adobe Flash (PC World)

Apple might be building its own alternative to Adobe’s Flash. Based on one Twitter message by Apple developer Jonathan “Wolf” Rentzsch, Apple is building Gianduia, a Web-based compilation of Javascript, HTML5, and CSS that, “essentially is browser-side Cocoa (including CoreData) + WebObjects, written in JavaScript by non-js-haters.” The war has already started, but this makes it that much more interesting.

Nokia Suing Apple Again, This Time For iPad Technology (The New York Times)
Nokia announced that it’s suing Apple again, this time over the iPhone and iPad 3G. The company said the gadgets infringe 5 patents which make voice and data communications more efficient, allowing the devices to be more compact.

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