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AAPL Up As Market Rises
The market is up after a wild ride of swings this week as retail sales for July posted their biggest gain since March, tempering fears that the U.S. might be slipping back into recession. Shares of AAPL are up modestly while the rest of tech is trading sideways. Catalysts include the next iPhone launch this fall as well as a possible iPad 3 ahead of the holidays; continued adoption in China and other emerging markets; iCloud rollout and adoption; the continued evolution and next generation of Apple TV; and new platforms such as books / publishing and social (Ping). Shares of Apple trade at 9.3x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
Apple’s Mac And iPhone Market Shares Could Double Or Triple (AppleInsider)
Sterne Agee analyst Shaw Wu suggests that Apple’s Mac and iPhone market shares could double or even triple in the next few years. He said there’s “plenty of headroom” for growth in the enterprise and consumer markets, and he thinks Apple can take advantage of “secular mega trends” including the mobile internet, cloud computing and the consumerization of technology. He notes that current market share in mobile is 4-5% (12-13% including the iPad). He particularly sees growth coming from China.
Verizon Caught Off Guard By Late iPhone Launch (All Things Digital)
Like almost everyone else, Verizon CFO Fran Shammo expected Apple’s iPhone 5 to launch in June, not October. “Obviously we’re disappointed that the iPhone 5 didn’t come out in June,” Shammo said, echoing comments made by Verizon CEO Lowell McAdam earlier this summer. Verizon had expected about half of its customers to be smartphone owners by the end of the year, but that now was more likely to occur early into 2012.
What If Samsung Stopped Making iPhone Components? (The Economist)
A solid chunk of every iPhone is built out of components supplied by Samsung. Businesses are good at compartmentalising, and so while Apple and Samsung may be at each other’s throats in the courts over intellectual property issues, that may not affect the production side of things at all. Especially on news that LG will miss its iPad display demands and Samsung is the fallback. Thankfully, there’s no sign Samsung is ready to walk away from one of its biggest customers. But with Apple winning injunctions left and right against the Galaxy Tab, you can’t help but wonder, what if?
Apple Is Also Going After Motorola Xoom (Various via iDygest)
Court documents from Apple’s recent preliminary injunction win against Samsung in Europe reveal that the company has also filed a claim against the Motorola Xoom. Foss Patents unearthed a paragraph from the Samsung complaint which mentions that Apple also filed a complaint against Motorola, related to the design of the Xoom tablet.
IBM Agrees That PCs Are Toast (Cult Of Mac)
The engineer who helped created the first IBM PC 30 years ago, marked the upcoming anniversary by announcing his “primary computer is a tablet.” Mark Dean, now IBM’s Chief Technology Officer for the Middle East and Africa, writes PCs are going the way of the vacuum tube and typewriter. Even Apple’s COO, Tim Cook, acknowledged during the company’s last earnings conference the effect of the iPad on the company’s own desktop products. Microsoft tends to take a more optimistic view.
iOS And Android Swallow Up Smartphone Market (TechCrunch)
Gartner released its new mobile device sales for the second quarter, and notes that Google and Apple are the “obvious winners” in the smartphone ecosystem. The combined share of iOS and Android doubled nearly 62% in the second quarter of this year, up from just over 31% in same quarter last year. Apple increased it’s share from 14% to 18%. Smartphone sales grew 74% as consumers looked to entry-level and mid-range Android handsets over feature phones.
Daily Trader: Sell What You Will, Don’t Sell Apple (CNBC)
While the market turmoil has taken some high-growth stocks to the woodshed, there has been one relative beacon of strength: Apple. The stunning sell-off has left the NASDAQ ~5% lower on the year, but amid all the turmoil, shares of Apple are actually up ~13% year-to-date. So what’s behind the resilience? “From a valuation perspective, the stock is downright cheap,” said BGC Partner’s Collin Gillis. Apple trades at 13x next year’s earnings, while large-cap rivals Google and Amazon trade at 15x and 82x, respectively.