The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Keeps Dropping
Stocks are up to end the week as GE tops estimates while McDonald’s falls in-line. Shares of AAPL are down again on earnings fears (see below). 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 are 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 11.6x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Next iPhone Will Likely Come Out This Fall, Don’t Freak Out (BusinessWeek)
The next iPhone is likely to be introduced in October and will feature a new body design and work with faster wireless networks, according to Piper Jaffray analyst Gene Munster. He had originally expected an August release for the iPhone 5 but wrote that October is more probable after chip maker Qualcomm announced it is having trouble meeting demand for components that he expects to be included in a new iPhone. Everyone took the chip maker’s comments to mean Apple won’t be able to release the iPhone 5 this fall. They’re wrong.
If Verizon Is Any Indication, Apple Will Miss iPhone Estimates (Business Insider)
Apple’s stock got absolutely mauled yesterday. People blamed Verizon’s earnings report. Apple sold 3.2 million iPhones at Verizon, which is pretty good. It was more than half of all smartphone sales at Verizon. However, it was a 24% drop on a quarter over quarter basis. If iPhone sales overall fell by 24%, then Apple would have only sold 28 million iPhones. Analysts are calling for 30 million+ units sold.
Despite The Drop In iPhone Sales At Verizon, It’s Impressive None The Less (All Things Digital)
Apple’s iPhone continues to sell well at Verizon. Of the 6.3 million smartphones sold, 3.2 million were iPhones and represent more than half of Verizon’s smartphone business. And consider this, Verizon sold just 2.1 million 4G LTE-enabled smartphones during the same period. That’s a million less than the iPhone, which is still 3G.
One Analyst Says iPhone Sales Will Slow Until The Next One Is Released (BGR)
Despite raising his price target on shares of Apple stock to $740 and reiterating his Buy rating, Mike Walkley of Canaccord Genuity says “Our recent channel checks indicate modestly slowing iPhone 4S sell-through trends in developed markets. We have lowered near-term iPhone unit estimates, but we have increased our F2013 iPhone estimates as we anticipate very strong demand for an LTE iPhone 5 ramping during the December quarter.” Basically, what happened last year is going to happen again.
Apple Tells The DOJ To Bring On The eBook Trial (Apple Insider)
Apple will challenge the U.S. Department of Justice’s lawsuit over alleged eBook price fixing, asking for a trial at the first hearing in Manhattan federal court. The company wants to defend itself against allegations that it colluded with publishers to fix the price of eBooks provided through the iBookstore. “Our basic view is that we would like the case to be decided on the merits,” said Apple lawyer Daniel Floyd to U.S. District Judge Denise Cote. “We believe that this is not an appropriate case against us and we would like to validate that.”
The iPhone Launches On Five More Carriers (9to5Mac)
The iPhone has launched on five new regional carriers. Alaska Communications, Appalachian Wireless, GCL, Cellcom, and nTelos now support Apple’s smartphone. This support makes it possible for people who live in more rural or remote areas to use an iPhone, and they get the device at a discount; the 4S is $50 less that usual and the iPhone 4 checks in at $99.
Tim Cook Named One Of Time’s Most Influential People In the World (Time)
Apple Chief Executive Tim Cook has been named to Time’s list of the 100 Most Influential People in the World. Current Apple board member Al Gore describes Cook as a “soft-spoken, genuinely humble and quietly intense son of an Alabama shipyard worker and a homemaker.” Acknowledging the difficulty anyone would have following Steve Jobs, Gore says, “He has indelibly imprinted his leadership on all areas of Apple — from managing its complex inner workings to identifying and shepherding new ‘insanely great’ technology and design breakthroughs into the product pipeline.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.