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AAPL Up With Markets
Markets are booming out of the gates as the jobs report crushes expectations. Shares of AAPL are up with the rest of tech. Investors remain focused on the revamped iPhone 5 launch next month; iPad proliferation and the rumoured launch of the “mini”; market share growth of the Mac business lines; the introduction of the anticipated Apple TV set and related products; and evolution of platforms such as Siri, iAd and iBooks. Shares of Apple trade at 10.0x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Apple Is Losing In China (Business Insider)
“Apple is under performing in China. They are actually losing market share in the smartphone market.” said Shaun Rein, managing director of the China Market Research Group. “Samsung is taking share at the high-end while Chinese phone maker Xiaomi is taking share at the low end.” What Apple needs is:
- A lot more retail stores
- To partner with the right carrier, China Mobile
- And to stop treating Chinese consumers like an afterthought
Fixable, but they’d better do it quick.
Why Apple TV Just Became Apple’s Most Important Product (Gizmodo)
There are coincidences in this world, and then there’s say, three heavy hitter holdouts all hopping on Apple TV within two days of each other. Maybe, it’s a sign that something major’s in the works. Hulu Plus, Amazon Instant Video and Sky Now TV (UK) are all now available on Apple TV. So what gives? This is a major change in attitude for Apple. The company is laying the groundwork for it to finally have apps. Think it’s still a hobby? Apple sold more Apple TVs in the last nine months than it did iMacs and Mac Pros. Combined. What’s more, it seems the whole world has forgotten about Apple’s alleged plans to make a television set.
If You Were Wondering Where Apple’s Profits Come From… (Business Insider)
It’s the iPhone. Apple’s profits are much more dependent on it than most people probably think. This means that the company’s financial and stock performance over the next couple of years will be highly correlated to the iPhone. If Apple’s iPhone 5 is a monster hit, Apple has room to blow away Wall Street’s current forecasts, especially in 2013. If Apple’s iPhone 5 is a dud, Wall Street may have to cut its Apple estimates. And the difference between a “hit” and a “dud” iPhone 5 would likely be hundreds of dollars per share.
Amazon Revamps Cloud Player To Take On iTunes (The Register)
One year after it introduced online music locker Cloud Drive, Amazon has revamped its built-in streaming service Cloud Player with a raft of features to take on iTunes. This includes iTunes Match-like “Scan and Match” storage, cross-device support and an upgrade to the audio quality. Most importantly, it includes the music licensing Amazon originally eschewed when it launched Cloud Player. Amazon might be “taking on” Apple, but it couldn’t have done so without using the exact same behind-the-scenes dealing with record labels that’s helped make iTunes number one.
Sharp Will Start Shipping iPhone 5 Screens (Reuters)
Sharp will start shipping screens destined for a new Apple iPhone that is widely expected to be released in October ahead of the pre-Christmas shopping season. “Shipments will start in August,” Sharp’s new president, Takashi Okuda, said at a press briefing in Tokyo on Thursday after the company released its latest quarterly earnings. He declined to give a more specific date for shipments beyond this month. Someone needs to tell this man that Apple doesn’t exactly like anyone, no less a partner, divulging such information.
The iPad Still Dominates The Tablet Market (BI Intelligence)
The iPad accounted for ~65% of tablet shipments last quarter. Android tablets were 22% of global shipments, their highest share since the first quarter of 2011. They should be further boosted in the third quarter by the successful release of the Google Nexus 7. The other big story last quarter was the collapse of forked Android tablets, the Kindle and the Nook. Together they combined for only 13% of the market last quarter, down from 40% in the fourth quarter of last year.
Chart Of The Day: Apple Is Now The iPhone Company (Business Insider)
Make no mistake about it, Apple is now the iPhone company. Based on information from Apple and estimates from Henry Blodget, gross profit from the iPhone has exploded since it was introduced in 2007. It basically overshadows profits from all other divisions at Apple. Blodget estimates gross profits will be $67 billion in 2014, up from an estimated $44 billion this year. And the iPhone accounts for almost two-thirds of Apple’s profits.
AMD Poaches Apple’s Chip Guy (MacNN)
Jim Keller, a veteran chip designer who started with Digital Equipment Corporation’s Alpha processor before eventually starting P.A. Semi and subsequently joining Apple, has left the company to join AMD. Keller will help lead the company in an effort to develop lower-power but more-efficient processors based on the ARM design. Keller was the founder of P.A. Semi, which was purchased by Apple and brought in-house in 2008 for $278 million. Apple might have to look for a new chip expert to continue work on the next A-series processors.