The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
Photo: By brandon king on flickr
AAPL Dragged Down With Tech
Consumer inflation lifted as expected in March, but underlying inflation pressures remained contained adding to early trading market gains. Shares of AAPL are down with the rest of technology on disappointing Google earnings. Upcoming catalysts for the stock include results of its second fiscal quarter on Wednesday, April 20 at 5:00 p.m ET; any update regarding Steve Jobs‘ healthy return; the WWDC starting June 6; monthly NPD data to gauge Mac / iPod businesses; iPad 2 sales updates; iPhone sales updates, the push in China, as well as the launch of the iPhone 5 (whenever that may be); new revenue streams such as video, books / publishing and social (Ping); moving iTunes into the cloud; and the continued evolution and adoption of Apple TV. Shares of Apple trade at 13x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).Apple To Launch Into Smart TVs In Time For The Holidays? (SoftPedia)
Analyst Brian White at Ticonderoga Securities has been telling investors to expect an HDTV from Apple by the year’s end. Apparently he found evidence of a Smart TV actively being developed by Apple with a potential release to the public by the end of the year. An analyst at Jefferies has been kicking around the same idea, that Apple could possibly launch a new video streaming platform and maybe even a new set-top box or TV this year. Of course, Gene Munster at Piper Jaffray has been saying this for years.
The iPad Could Very Well Top Estimates (Apple Insider)
Ticonderoga Securities analyst Brian White says component suppliers in China and Taiwan believe Apple will sell far more iPads than expected. Brian has been quite vocal as of late, hasn’t he? Sales of the iPad in 2011 could exceed some of the highest expectations, as overseas component makers have indicated that Apple could sell 45 million of its touchscreen tablet this year. DigiTimes also recently cited industry sources, suggesting Apple would ship 40 million iPads in 2011.
Apple Not Sinking With The Rest Of The PC Ship (MacRumors)
For the first time in 6 quarters, worldwide shipments of personal computers declined during the first quarter. Low prices haven’t been enough to continue to attract consumer PC spending as tablets and other mobile devices have increasingly captured consumer attention. Apple, however is bucking the trend, demonstrating year-over-year Mac sales growth while the rest of the industry has been mired in a slump.
Apple Poaches Microsoft’s Data centre General Manager For Cloud Ops (Data centre Knowledge)
The man who helped build data centres for Microsoft’s cloud operations is said to have left the Redmond to work for the enemy. Apple has hired Kevin Timmons, formerly the general manager of Microsoft’s data centre group. Apple’s new billion-dollar data centre in North Carolina has been a recurring topic of interest among tech sites for quite some time now. The massive facility is thought to be a hub that will power Apple’s next generation of cloud-based services. Read more at Business Insider.
Daily Trader: AAPL Is Worth Owning Because Of The iPad (Barron’s)
There is unusually high visibility into numbers for most Apple devices, according to Gene Munster at Piper Jaffray. But for the iPad 2, the persistence of a dramatic supply constraint means the demand for the device far exceeds the supply, making reported numbers irrelevant. He states, “the takeaway likely will be that iPad was supply-constrained and has an open growth opportunity in calendar 2011 and calendar 2012.” And that means an undervalued stock.
White iPhone Finally To See The Light Of Day (Various via iDygest)
Citing sources familiar with Apple’s plans, white iPhone 4 will be available on both AT&T and Verizon Wireless by the end of the month. Apple’s Phil Schiller said in March that the white version of the iPhone 4 is coming “this spring.” Apple has finally overcome the problems with the manufacturing process of the white iPhone. My question is: who will buy this version when the iPhone 5 is just around the corner? Read more at Business Insider.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.