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AAPL Up Strong
Shares of AAPL are up strong as the market pushes forward on encouraging corporate results, including strong bank earnings out of Europe. Future catalysts for Apple stock include monthly NPD data (Mac / iPod business); iPhone unit updates and AT&T exclusivity expiration; iPad shipment ramp and international expansion; new content revenue streams such as video and books; and possible entry into the TV market with a refresh of Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow.Android A Long-Term Threat To Apple (Barron’s)
Bernstein Research analyst Toni Sacconaghi sees only modest risks for Apple near-term from Android, but inevitably a more serious clash to come a few years out as the iPhone is expensive to carriers. He says that a head-on collision between Apple and Android still seems inevitable, given that the two sides together would have a combined 60% of the market in 3 years if they each grow 50% faster than the market.
Apple Blowing A Huge Opportunity By Staying With AT&T (The Motley Fool)
By allowing Android to gain a base, Apple’s giving developers a reason to create a large catalogue of apps. Apple’s allowing Google to build unchecked on three of the nation’s largest networks. It’s in Apple’s best long-term interest to capitalise now while buyers are favouring Apple as the superior option. If not, the company is leaving profits on the table and allowing a rival to grow; a decision that might come back to haunt them.
Apple Has Gone From Darling To Bad Seed (The Motley Fool)
Known for being obsessed with every little detail of its products and churning out devices that offer the best user experience in their segment, recent iPhone 4 issues may impact the reputation of Apple. It seems that the company’s status has been reduced from a religion to a punching bag for the media. What does that mean for the stock? It could be range-bound until signs that the back-to-school season is proving wildly positive.
Apple’s Value Hiding In Plain Sight (Investopedia)
Apple may be the one tech play that provides a great blend of both value and growth. It’s a virtual certainty that the company’s best gains have come and gone forever. However, over the next few years Apple shares could still deliver double-digit annual returns with the iPad and iPhone products. It still may be time to jump on the bandwagon.
Who Will Win The Ebook War? Analyst Says Amazon (CNBC)
Apple may have a popular device with the iPad, but Jim Friedland of Cowen and Company thinks Amazon will sell the most electronic books thanks to its Kindle e-reader and Kindle application. He believes Amazon has a “much better” book store with greater selection and lower prices. Amazon is speeding up the process of making the e-reader a commodity and as a result, pricing comes in and margins are compressed. He thinks it has been aggressive on pricing, so more consumers will buy the Kindle.
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