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AAPL Up With Market
Markets are rebounding after five straight days of loses. Shares of AAPL are up with the rest of tech. Apple will report calendar first quarter earnings on Tuesday, April 24 at 5:00pm ET. Additionally, Tim Cook will be the keynote speaker at the D10 Conference on May 29. Investors will be looking for the new iPad adoption; iPhone penetration, especially in China and emerging markets; market share growth of the Mac business; the evolution of Apple TV; and platforms such as Siri, iAd, iBooks and Ping. Shares of Apple trade at 12.1x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Amazon Adds In-App Purchases To Compete With Apple (BusinessWeek)
Amazon will start letting users make purchases within the applications sold in its online store, matching a feature offered by rivals Apple and Google. The new software enables developers to charge for digital content and subscriptions. “Allowing for in-app transactions is now basic functionality for app stores, and this is necessary to help Amazon even the playing field,” said Colin Sebastian, an analyst at Robert W. Baird & Co. in San Francisco, who expects Amazon shares to outperform peers. “Without this, I think Amazon’s app store would be at a disadvantage.”
Analyst Says Because Handsets Will Be Commoditized, Apple Stock Should Be $270
ACI Research analyst Ed Zabitsky says Samsung will be the smartphone leader in the first quarter with 40 million smartphones. That far exceeds what analysts are looking on the high end for Apple. He has a Sell on Apple stock with a price target of $270. He believes that the mania on Wall Street is creating the Internet bubble 2.0. He sees increased competition and as things move to the web you will see commoditization of the handsets. The only question is how long will it take for Google, Facebook and Amazon to take back their customers. Ok Ed.
The iPad Is Becoming A Serious Gaming Device (Business Insider)
What is becoming clear is that it’s time to stop suggesting that the iPad is only for playing casual games. It’s not. A lot of the games built for iOS devices offer gameplay experiences that are just as good as the ones on home consoles, and they do it for a lot cheaper too. Gaming consoles like the Xbox are not dead but, they do have some friendly competition from mobile devices like the iPad, iPhone, and Android devices. Need proof? Just ask Toys ‘R’ Us.
Apple’s Valuation Hits $600 Billion Briefly (CNN)
Apple’s rocket trip into the stock-market stratosphere took it to a lofty new height yesterday morning, when Apple’s valuation briefly crossed the $600 billion mark. That’s a milestone only one other company has ever achieved. Microsoft’s market cap topped $600 billion in late 1999, at the height of the dot-com bubble. Microsoft now trades at a valuation of around $260 billion. Apple shares reached a record high of $644 yesterday intraday, nudging the company just past the $600 billion line. The stock ended up closing down on the day.
Global Tablet Units Set To Double This Year (Gartner)
Worldwide sales of tablet computers will nearly double to 118.9 million units in 2012, compared with 60 million units in 2011, according to Gartner. Apple will continue to dominate the global market, with a 61.4%, despite the arrival of rival devices from Microsoft and Amazon. Tablets running Google’s Android operating system will have a 31.9%, while those powered by Microsoft’s Windows 8 will account for 4.1% of the market, Gartner forecast. By 2015, about 35% of tablet sales will be for business use.
Android Still The Dominant Mobile Platform In China (Reuters)
Android was the top smartphone platform in China last year, growing its market share by about 35% in the world’s largest market for mobile phones, according to Analysys International. At the end of 2011, Android had 68.4% of the smartphone OS market by the number of smartphones sold, up from 33.6% at the end of the first quarter of last year. Apple posted a modest growth in 2011, with the market share of its iOS operating system rising from 4.1% in the first quarter to 5.7% at the end of the fourth quarter.
The New iPad Accounts For 10% Of All iPad Traffic (Chitika)
According to ad network Chitika, it took Apple’s new iPad just three weeks to account for 10% of all iPad traffic across the network. The new iPad’s share of iPad traffic peaked at 16.2% on the morning of April 8th, and the full-day average for the new iPad’s traffic share reached 10% for the first time that day. “The 10% threshold is much more than an indicator of adoption,” according to Chitika’s Gabe Donnini. “The new iPad stands as a prime example of what any company could hope for.”
Apple Accused Of Avoiding Taxes In The U.K. (AppleInsider)
Apple is the latest technology company accused of avoiding U.K. taxes. The company is said to have paid £10 million in corporation tax last year on estimated sales of £6 billion. Apple has a major operation based out of Ireland to take advantage of its low tax rate. The tax rate in Cork is just 12.5%, or about half the 24% corporate rate in the U.K. The attention on Apple’s taxes comes as rival Amazon is under investigation after it was discovered that the online retailer did not pay any British corporation tax in 2010 or 2011, after switching its European headquarters to Luxembourg. Speaking of taxes, Apple just poached Symantec’s CAO.