The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Flat Against Tech
The market is mixed as consumer sentiment rose more than expected, jumping to its highest level since January 2008. Shares of AAPL are flat. Upcoming catalysts for Apple include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion (Verizon); new content revenue streams such as video, books, newspapers and social (Ping); moving iTunes into the cloud; and the uptake of the new Apple TV. Shares of Apple trade at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Analysts Jump On The Verizon iPhone Band Wagon And Raise Price Targets (Fortune)
Let the guessing game begin:
- Doug Reid at Stifel Nicolaus raised his price target to $390 noting an increase in confidence that the Verizon iPhone will ship in early 2011 with a mid-February launch. Reid is only estimating 800,000 additional iPhone sales for the year despite diversifying carriers. So he’s essentially saying having Verizon won’t help sell more iPhones. Craziness.
- Scott Craig at Bank of America Merrill Lynch increased his price target to $420. As he expects the Verizon iPhone to be introduced early next year as well. Craig believes that Apple will gain an extra 6 million phones through the country’s largest network.
Apple Working On Peer-To-Peer App Sharing Capability (Patently Apple)
Apple is working on a way for peers to share or introduce applications to peers; an app-driven vision for life in the clouds. Two iPhone users can share apps on a peer-to-peer basis according to a new patent, and if payment is required the receive can pay later. The giver could also receive incentives for sharing apps. Extend these concepts to the Mac App Store and we could really experience a software sales explosion.
The iPad Is Gradually Making Its Way To A Company Near You (Citrix)
Citrix posted the results of a survey of over 4,900 people: customers who are interested in the iPad or using the device already.
- 62% say they will buy the iPad for work. However, 57% said their companies aren’t buying them. It’s all about the consumer.
- 91% of respondents said they will use the iPad primarily for productivity applications and another 69% cited collaboration as the primary use.
- Email was the primary use for the iPad by far at 95%.
- 45% of respondents said the iPad is convenient for work, but they haven’t used it a lot. While 42% said that they are more productive and use the iPad daily.
- 72% of respondents said their companies will give them access to corporate resources on their personal iPads.
- 28% said their companies are shutting out the iPad.
The iPad Will Generate More Than 2% Of All Internet Traffic By The End Of Next Year (All Things Digital)
According to Chitika, by the end of 2011 the iPad will generate more than 2% of all North America Internet traffic. The research firm has been tracking iPad adoption rates on its ad network (three billion ads served monthly across more than 100,000 sites). Currently, the iPad accounts for 0.83 per cent of all traffic on Chitika’s network. At current growth rates, it should hit 2.3% by the end of next year.
Costco And Apple Break Ties (Seattle Times)
During Costco‘s fiscal first quarter earnings call, CFO Richard Galanti confirmed that the company is in the process of phasing out Apple products. The split is apparently mutual, however Costco can’t be happy about it. Although, the wholesale retailer was never allowed to sell Apple’s products through its own online store. Shoppers will just have to go to Sam’s Club, Wal-Mart or Target.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.