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AAPL Down With Markets
Stocks are week mid-week as European markets get slammed after the mediocre Spanish bond auction. Shares of AAPL are down after highs yesterday. Apple wil report calendar first quarter earnings on Tuesday, April 24 at 5:00pm ET. 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).Apple Ax Says Market Cap Going To A Trillion (CNNMoney)
Piper Jaffray analyst Gene Munster raised his quarterly iPhone estimate to 33 million and set a new 12-month price target of $910 per share. He also laid out a roadmap for Apple’s market capitalisation to $1 trillion by 2014. That would be a first. So where does Apple get the next $400-plus billion? Half from more money pouring into tech stocks and half from money continuing to drain from the market cap of Apple’s major competitors, who have roughly $1 trillion between them. Munster also says that Research In Motion is going out of business.
Another Analyst Agrees With The Ax (Bloomberg)
Apple will see its stock price reach $1,001 within 12 months, lifted by growth in China and the debut of a new television product, according to Topeka Capital Markets analyst Brian White. The gains will be fuelled by demand for the next iPhone, in addition to the expansion into China and the TV market. “Apple fever is spreading like a wildfire around the world,” in an initiation piece that White issued with a Buy recommendation. Would you invest in Apple at these levels?
Another Analyst Raises Estimates And Price-Target (AppleInsider)
J.P. Morgan analyst Mark Moskowitz raised his year-end price target for Apple from $625 to $715 and also raised its unit shipment estimates for the company on better than anticipated sales of the iPhone and iPad. Moskowitz says, “We are not trying to inflate expectations ahead of the [March quarter] print. Our intent is to communicate the incremental delta in our new and old estimates as identified by our recent research.”
Apple TV Unlikely To Get Different Programming (VentureBeat)
Barclays media analyst Anthony DiClement said a Apple-branded TV set could look like a “large-scale iPad” with internet connectivity and the ability to sync with the company’s iOS platform. What it won’t have, however, is a radically different selection of content subscription options. Most of this comes down to the large affiliate fees that cable TV providers pay to individual channels. DiClemente also indicated that the TV set won’t hit retail shelves in 2012, will likely use Siri technology for remote control functionality and start at a base price of $1,500.
iPhone 4S Remains Top Phone In U.S. In March (BGR)
The iPhone 4S retained its position atop the smartphone ranks in the U.S. last month according to Canaccord Genuity analyst Mike Walkley. Through channel checks his team found that Apple’s latest iPhone was the best-selling smartphone at Verizon Wireless, AT&T and Sprint in March. “Our March channel checks indicated stronger sell-through trends versus February levels with sales rebounding after a slow start to 2012,” Walkley says. “During March, our checks indicated the iPhone 4S remained the top smartphone in the U.S. market and Samsung gained share as smartphone penetration grows in U.S. prepaid channels.”
Is The iPhone 5 Coming This Summer After All? (AppleInsider)
TV Tokyo’s World Business Satellite show broadcast a report that included footage of a personnel recruitment office for Apple manufacturing partner Foxconn saying that the iPhone 5 “will come out in June.” That puts the iPhone back on it’s original launch track aside from last year’s late launch in October. The comment still remains highly questionable. It’s unclear how a low-level employee within the company would already know Apple’s release schedule when the iPhone maker is notorious for its high level of secrecy. Do you think the new iPhone will launch in June?
Android And iOS Take 80% U.S. Smartphone Platform Share (comScore)
comScore released its data of the top smartphone platforms and OEMs in the U.S. Android was up 17-percentage-points from a year ago with 50.1% of the U.S. smartphone market followed by Apple at 30.2%, an increase of 5-percentage-points. In terms of manufacturers, Samsung is the largest with 25.6% share followed by LG at 19.4% and Apple at 13.5%. So, Android might be winning, but the phone makers aren’t
Apple Changing Employee Hours To Fit Demand (ifoAppleStore)
Demand for Apple’s products has resulted in greater visitor traffic at the company’s retail stores, with some locations reporting a doubling of their traffic over the past four years. As such, Apple’s stores are reportedly “changing weekend work requirements, and increasing the mandatory minimum hours for part-timers,” a new policy that hasn’t gone over well with some employees. Current full-time workers are reportedly now “required to work at least one weekend day each week.” Good news for investors as an indication of demand levels.
Rich People Own iPhones (Luxury Institute)
Wealthy smartphone users are more likely to own an Apple iPhone and less likely to play games or post on Twitter than average users. According to research from The Luxury Institute, 62% of U.S. consumers earning at least $150,000 per year own a smartphone. Of that bracket, 45% of people own an iPhone, 35% use an Android-powered device and 25% have a BlackBerry.
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