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AAPL Reaching Highs Into Earnings
The futures markets are taking on the jobs miss. Apple will 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 12.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
iOS Fragmentation Versus Android Fragmentation, There’s No Comparison (pxldot)
Industrial and graphic designer Chris Sauve recently did an interesting study on platform fragmentation. “iOS 5 captured approximately 75% of all iOS users in the same amount of time it took Gingerbread to get 4% of all Android users,” he says. “Even more astounding is that 15 weeks after launch iOS 4 was at 70% and iOS 5 was at 60% while Ice Cream Sandwich got to just 1% share at the same age.” Sauve continues that “iOS devices have, on average, reached 10% version share 300 times faster than Android versions, 30% share 19 times faster, and 50% share 7 times faster.” Check out the post for the pretty charts.
Apple’s TV Called The ‘iPanel’ To Launch This Year, Says Analyst (Barron’s)
Jefferies & Co.’s Peter Misek was the latest analyst to raise his price target on Apple stock to $800 from $699. He has “increased confidence” the company will introduce a television set, leading him to raised his fiscal (September) 2013 estimate to $214 billion, well above the Street consensus of $187 billion. Additionally, he believes “the iTV could be called ‘iPanel’ as it is far more than a TV.” The “iTV” name is owned by the U.K. company of the same name, which has global rights, “and won’t sell them based on recent checks.” With billions on the balance sheet, if anyone could convince them to sell, it would be Apple.
Apple Seeing Lower Than Expected Mac Sales Due To Late Refresh (AppleInsider)
Apple is seeing a decrease in year-to-year Mac sales due to a later than usual refresh cycle for its popular MacBook Pro line of notebooks, but analysts expect iPhone and iPad sales to offset the drop. Morgan Stanley says that although the U.S. retail market improved in March, Apple’s shipment growth atrophied, falling 4% sequentially due to a lack of new hardware. Huberty notes Apple refreshed its major notebook line this time last year, which is in line with the release model the company has traditionally followed. The lines of computers aren’t rumoured to be out until June.
Apple Becoming A More Viable Option In The Enterprise (WSJ)
Apple is seeing a bump in the number of businesses issuing Macs to their employees but the actual number of workers per company who are issued the computers is still a small percentage of the overall enterprise market. According to CBS Interactive CTO Peter Yared, the cost of rolling out an enterprise Mac solution is becoming a more viable option. About 100-150 Macs are being brought in to select CBS brands each quarter to replace older Windows PCs for roughly 2,500 employees. The halo effect might be in force at some smaller startup companies, though cost structure is making the Mac more attractive for large multi-nationals.
High School Students Keeping Apple In Business, 34% Own An iPhone (MacRumors)
Piper Jaffray analyst Gene Munster issued a report earlier this week, his latest semi-annual survey of U.S. teenagers. The results of the extensive survey of 5,600 U.S. high school students show that 34% of surveyed students now own an iPhone, an all-time high in the survey and double the percentage seen just a year ago. Furthermore, 40% of surveyed students indicated that they intend to purchase an iPhone within the next six months.
Apple Expanding Customer Reach With Rural Wireless Carriers (MacRumors)
Apple plans to expand its customer reach. The iPhone 4S and iPhone 4 will launch on a number of small, regional CDMA wireless networks in the U.S. later this month. The soft launch expands Apple’s original foray into regional carrier partnerships which began last October with C Spire in Southeastern United States. Now at least four additional regional CDMA carriers across the U.S. have announced plans to carry the iPhone including: nTelos, Alaska Communications, Appalachian Wireless, and Cellcom.
Ways To Backdoor Apple Stock, Play The Supply Chain (Business Insider)
For those who want “exposure” to Apple, but are afraid of buying into a stock on a parabolic run, Credit Suisse presents the Apple Supply Chain Basket. The list is comprised of companies with a high two-year correlation to Apple and also a meaningful supply chain relationship to Apple. Some on the list, like Toyota, we don’t really get, but it’s still interesting. Of course, if Apple implodes, probably a lot of these Apple-related stocks will be in trouble as well. And earlier too.
Apple Ready To Fight The DoJ On Publishing Model (BusinessWeek)
Apple and two publishers are preparing to fight the U.S. Justice Department in court if necessary over pricing agreements for digital books. rumour has it Apple has been siting out of the settlement talks. The DoJ is seeking an antitrust settlement that would allow Amazon and other retailers to return to a wholesale model, where retailers decide what to charge customers. A settlement could also void so-called most-favoured nation clauses in Apple’s contracts that require book sellers to provide the maker of the iPad with the lowest prices they offer competitors.