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AAPL Down With Tech
The Dow is in positive territory as we head into another big weekend for Euro leaders on the Greece debacle. Shares of AAPL, however, are off with the rest of tech. Investors continue to be focused on iPhone adoption; update to the iPad; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as Siri, iAd, iBooks and social (Ping). Shares of Apple trade at 9.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Analyst Raising Smartphone Estimates, Apple And Samsung Clear Winners (Barron’s)
Barclays Capital analyst Jeff Kvaal increased his smartphone estimate for the quarter to 155 million units from 151 million. His estimate for the year goes to 660 million from 669 million and his 2013 estimate goes to 862 million from 845 million. And the overall trend is that Apple and Samsung are gaining share and everyone else trying to cope with that.
Apple Is Crushing Amazon (Business Insider)
Morgan Stanley analyst Scott Devitt says Amazon’s poor results in the fourth quarter can be attributed directly to Apple’s excellent results. He writes, “Apple’s strength in iPhone and iPad sales are negatively affecting Amazon.com by accelerating the company’s transition from physical to digital media sales (which has effects on sales, margins and ROIC) as well as impacting Electronics & General Merchandise (“EGM”) growth.” In the long term, Devitt believes Amazon comes out stronger. In the short term, he’s expecting pain.
Apple’s Smartphone Market Share In China Slips In The Fourth Quarter (TechCrunch)
As Apple claimed the top spot as the world’s biggest smartphone vendor in the last quarter, it actually slipped in the rankings in China and is now in fifth position after ZTE. According to regional figures from Gartner, in China, Apple accounted for 7.5% of sales in the holiday quarter, down from 10.4% the quarter before. And there’s a reason for that. Apple only kicked off sales of the iPhone 4S in China this January. We saw this kind of trend in the third quarter in the U.S. While not likely a longer-term issue, it remains to be seen if this market will gravitate to local brands and cheaper devices.
Apple Launches OX X Mountain Lion, The Mac Gets More iPad Like (Scoople, Business Insider)
Apple took the wraps off its newest operating system for Macs called OS X Mountain Lion. The company is shifting to a new release schedule for the software that powers its Macs. Instead of making you wait two or three years between versions, you’ll get a new one just about every year. It’s very similar to the iOS release schedule for iPhones and iPads. Here are the most important features:
- Airplay on the Mac
- Twitter integration (sorry Facebook)
- iMessage (iChat is dead)
- Desktop notifications
- Game centre
iPad Market Share Hurt By iPhone 4S, Not Rival Tablet Makers (IHS iSuppli)
According IHS iSuppli, Apple’s fourth quarter iPad market share suffered less so from rival tablet manufacturers than from its very own iPhone 4S. Apple’s worldwide tablet share dropped to 57% last quarter from 64% the previously. iSuppli believes that Apple’s market share loss wasn’t due to the competition, but a result of consumers reserving for the long-awaited iPhone 4S. If that’s the case, the iPad 3 launch next quarter could see even more demand.
Tim Cook Says Microsoft Puts No Competitive Pressure On Apple (The Next Web)
The Wall Street Journal spoke with Apple CEO Tim Cook at the launch of OS X Mountain Lion and perhaps the most revealing part of the interview had nothing to do with the OS at all. It was Cook’s response when pushed on whether the company has adapted its strategy in response to pressure from other software companies and device makers, most notably Microsoft: “I don’t really think anything Microsoft does puts pressure on Apple.” Ouch! Apple builds the best quality products it can and remains “self-induced.”
The iPad Is Saving Trees, Printer Use Down (AppleInsider)
Morgan Stanley issued a report that the rapid ascent of tablets for business use has adversely affected printing by more than it had originally predicted. Last February, the investment bank predicted an 8-15% decline in printing, but a new survey shows cuts as deep as 16% due to increased tablet use combined and company measures to curtail printing. In a survey of 700 tablet users in the U.S., 46% of respondents said they printed less, with 13% indicating that they printed 16% less after owning a tablet.
The iPad Is Taking Over The Medical Field (TUAW)
According to a new survey of physicians by Manhattan Research, 26% of 1,207 practicing physicians in Europe said that they own an iPad and spend 27% of their work online time using the iPad. The study also found that 40% of doctors surveyed plan to purchase an iPad within the next six months. Doctors are using them primarily to browse medical articles on the web, watch videos, look up information and “to manage and educate their patients.”
Samsung Not Worried About The Imminent Apple TV (Pocket-Lint)
Samsung was the number one flat panel TV vendor in 2011 and despite a seemingly imminent threat from Apple, the company is not concerned. Samsung’s AV product manager Chris Moseley explained that TV sales are driven for the most part by picture quality and in that respect, Samsung can’t be touched. “We’ve not seen what they’ve done but what we can say is that they don’t have 10,000 people in R&D in the vision category,” Moseley said. “They don’t have the best scaling engine in the world and they don’t have world renowned picture quality that has been awarded more than anyone else.” We’ll see.
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