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AAPL Up In Shaky Market
Stocks are mixed in early trading as GDP comes in below estimates. Shares of AAPL are up marginally with the rest of tech. 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).
Apple TV Should Surpass 1 Million Units This Week, Where’s The TV And App Store? (Apple)
It appears that the Apple TV is no longer a “hobby.” Apple announced that it expects sales of its recently redesigned Apple TV to top one million units later this week. By announcing sales of a million units in the space of three months, Apple is sending a very different message about the viability of this new generation of Apple TV. Because of the critical mass, Dan Frommer at Business Insider believes that there is an Apple TV App Store in the works. And Eric Savitz at Forbes wonders when Apple will come out with their own LCD TV? After all, that is a $100 billion market. And Apple is rumoured to be investing in a $1.2 billion LCD manufacturing facility with Sharp.
Verizon Itching For iPhone To Stave Off Declining Android Momentum And Share Loss To AT&T (The Wall Street Journal)
Kaufman Bros tech analyst Shaw Wu is the latest analyst to report on the iPhone for Verizon. His checks indicate that Verizon is hoping to launch iPhone in the first half of 2011. In doing so, the nation’s largest carrier will combat slowing Android momentum and market share losses to AT&T. Sounds like Verizon needs the iPhone as much if not more than perhaps Apple needs Verizon. Which means there will likely be plenty of customer subsidies / incentives to buy the Verizon iPhone, paid for by Verizon.
Apple Looking To Take On Google’s Speech Recognition Lead (9to5Mac)
Four new job listings that appeared on Apple’s website earlier this week and suggest the company is looking forward to implementing more speech recognition features in future versions of iOS, a sign that Apple is willing to catch up with Android. Speech recognition features on iOS are limited to Voice Control and a few other apps that come with their own speech technologies.
Seventeen per cent Of iPad Owners Have A Second Tablet (YouGov)
A study released polled 1,667 tablet owners about their devices. In total, 782 of the sample size owned an iPad and 17% of those owned “two or more” tablets in their home. About 68% who own more than one iPad bought the second tablet because the iPad gets constant use from someone in the household other than themselves. Owners who only had one tablet but are planning to buy a second device, 69% of them would choose an iPad, well more than the 24% that would opt for a Kindle.
Apple’s Social Music Network Ping On Worst Of 2010 List By NPR (NPR)
In spite of Apple’s attempts to socialize, Ping is struggling to take off. And it has been added to the NPR list of “worst ideas of 2010.” NPR calls Ping a “weakened” version of Twitter only meant to drive sales to the iTunes Store. Well, duh. Ping is clearly not a massive hit out of the gate, but it has room to grow.
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