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AAPL Down As Stocks Waver
An extension of tax cuts sent stocks higher in early trading but the market is now experiencing a sell off. Shares of AAPL are off with the NASDAQ. 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 Predicts Apple Will Have Nearly $100 Billion In Cash By Sept 2012 (Barron’s)
Gabelli & Co. analyst Hendi Susanto initiated coverage of Apple with a Buy recommendation and a price-target of $450. The analyst is predicting the company will end its fiscal year in September with $98 billion in revenue, or about $10 billion more than the consensus. Hendi is focused more on content and the Apple ecosystem than on devices and believes by September 2012 Apple should have ~$97 billion in cash which will bring pressure for buybacks or a dividend.
Google’s Android-Based Tablets Will Catch Up To iPad In 2011, Says Munster (eWeek)
Apple will command 44% of the total tablet market by 2012, with tablets based on Google’s Android operating system nipping at its heels with 39%, according to Gene Munster at Piper Jaffray. That’s compared to Apple’s domination at ~90% market share this year and Android’s ~11%. Munster expects Android tablets to take off in 2011, when machines running the next-generation Android 3.0 operating system (Honeycomb) arrive. That said, he also believes Apple will rocket to $200 billion in sales in the next five years.
Apple’s Success Is Laser Focus On Complementary Product Lines (The Motley Fool)
Apple’s success is largely the result of its tight focus on a small number of product lines that are complementary to one another. For example, the iPad was little more than a larger iPhone upon its launch. Apple’s genius was that it was the first company to understand what customers wanted in the nascent tablet market. The company then delivered with an easy-to-grasp user interface at the right tablet size and was able to expand its iOS operating system to a whole new growth avenue.
Apple Looking To Deliver Navigation Apps Rather Than Relying On Google (PC World)
According to job postings, Apple is looking for engineers with “experience developing navigation software.” Matt Rosoff at Business Insider believes this could mean that Apple is building turn-by-turn voice navigation into a future version of iOS, rather than relying on Google to provide it. Including turn-by-turn directions in the iPhone would knock off one of the last remaining justifications for buying a standalone GPS device, which could spell more trouble for manufacturers like Garmin.
iPad Not Likely To Drop In Price Much Even With iPad 2 Early Next Year (TabletPCReview)
David Mercer at Strategy Analytics believes that two-thirds of possible iPad buyers from the U.S. and Europe want to pay less than the iPad’s current going price. Even though tablet competition is only going to get thicker, Apple isn’t expected to budge much on the pricing until the iPad 2 launches early next year. And even then, the iPad probably won’t see a significant price drop.
Microsoft And Apple Duke It Out For Fastest Selling Consumer Electronics Product Ever (The Next Web)
Apple and Microsoft have been competing for decades. Though Kinect and the iPad are vastly different devices, the pair are the two fastest selling gadgets this year. The Next Web put together an interesting iPad versus Kinect chart that compares the number of units sold and the estimated revenue for each device. It suggests the Kinect will outsell the iPad in terms of the total number of units sold, but Apple will generate almost 4 times the revenue of the Kinect after the second quarter of sales.
Apple And Sharp rumoured To Be Launching $1.2 Billion LCD Manufacturing Facility (AppleInsider)
Apple is rumoured to partner with another company for LCD manufacturing, but this time the company is Sharp, not Samsung. Apple will reportedly be responsible for a “large portion” of the $1.2 billion facility and will buy “most” of the panels produced by Sharp. The new production lines will allegedly manufacture small and mid-size LCD panels, and Apple is said to purchase the bulk of the displays for the iPhone.
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