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AAPL Up With Market
Stocks opened higher this morning on positive earnings. The S&P 500 is climbing led by gains in tech. Shares of Apple are trading up over 0.70%. 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 Is Going To Continue To Dominate In The Tablet Market (AppleInsider)
PC sales are growing, but at a slower pace than expected, according to Deutsche Bank analyst Chris Whitmore. He cut his PC unit growth (excluding tablets), for 2011 to 4% from 9% year-over-year. That said, he boosted his 2011 tablet sales forecast to 45 million, up from 40 million. Whitmore sees the lion’s share of those tablets (35 million) being sold by Apple. He also increased his price target on the shares to $450 and reiterated his Buy rating.
Don’t Forget The MacBook Air, It Could Make Apple Over $2 Billion In Annual Revenue
With all the chatter over the iPad 2, the iPhone 4 and its successor, it’s easy to forget that Apple has another ultra-portable device that’s doing quite well: the MacBook Air. And the second-generation is proving to be a strong seller; one that could bring the company $2.2 billion in annual revenue if the current pace keeps up, according J.P. Morgan analyst Mark Moskowitz. The Air is also becoming a bigger player in the Mac lineup, representing more than 10% of Mac units in the fourth quarter, and 15% of total notebook unit sales versus the 5% from the year before.
Apple Wins The Teen Audience (Apple Insider)
Piper Jaffray analyst Gene Munster surveyed 4,500 high school teens found that Apple continues to dominate the teen market and has driven surprisingly quick adoption of tablets by teens. Apple has achieved a record 17% iPhone market share among teens with an additional 37% of respondents indicating interest in buying an iPhone in the next 6 months and 20% are planning to buy a tablet; which probably means the iPad. Read more at Business Insider.
Consumer Reports Says iPad Will Continue To Lead On Quality And Price (Boy Genius Report)
“So far, Apple is leading the tablet market in both quality and price, which is unusual for a company whose products are usually premium priced,” said Paul Reynolds, Electronics Editor at Consumer Reports. That said, there will undoubtedly be more competitive pricing as tablets continue to hit the market. Consumer Reports has taken an odd stance on Apple’s mobile products in recent history, particularly where the iPhone is concerned, so this is a positive turn.
Apple’s Developer Experience Is Easy Compared To Android’s Fragmentation (Fortune)
According to a new survey, the overwhelming majority of developers for Google’s Android see fragmentation as a problem for the platform. Many prefer to see a more unified, single store experience like Apple’s App Store. Only 14% of the 250 developers surveyed didn’t see fragmentation as an issue, while 57% either saw it as a “meaningful” or a “huge” problem. Many also found iOS easier to code for than Android, and thought it was considerably easier to get app exposure and proper pay on iOS than on Android.
Apple Weight Gets Cut In NASDAQ Rebalance (The Wall Street Journal)
NASDAQ announced that it will adjust the weighing of several companies in the NASDAQ-100 index to better reflect market capitalisation. Given the fact that shares of Apple have quadrupled in value over the past two years, Apple’s share of the index will go from 20% to 12%. Re-balancing is relatively rare, but not unheard of. Apple shares could get whacked though as many hedge funds follow to the index. Read more at Business Insider.
Apple Off the Hook For $625 Million In Patent Infringement Case (Bloomberg)
Apple won’t have to shell out $625.5 million to a company called Mirror Worlds after all a new ruling in a patent dispute case. The trial focused on the Spotlight, Time Machine and Cover Flow features in Apple’s Mac operating systems. A jury last October found Apple was infringing three patents, but U.S. District Judge Leonard Davis reversed ruling and stated that Apple didn’t infringe on patents owned by Mirror Worlds and closed the case in Apple’s favour. That’s a good chunk of change saved. Read more at Business Insider.
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