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AAPL Up Against Weaker Markets
Despite relative strength in early action, tech has been imbued by broader market weakness. Shares of AAPL, however, are up 1%. 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 refreshed Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).Verizon Willing To Play The Game, Wants CDMA Exclusivity Says Analyst (The Wall Street Journal)
Shaw Wu at Kaufman Bros. says the Verizon iPhone “closer to reality.” Here are a couple of his more interesting thoughts:
- Verizon appears more willing to accept terms as AT&T has gained share the last two quarters against Android.
- Verizon does not want iPhone available on T-Mobile or Sprint and may be willing to pay for exclusivity to itself and AT&T.
Verizon will likely pay a hefty subsidy per iPhone, which could crimp profit margins; especially for exclusivity against other carriers. Something investors expect to be partially offset by the higher revenue per user.
The Mac Store To Be Launched Ahead Of Schedule And Ahead Of Christmas (Appletell)
Apple is rumoured to launch its Mac App Store on December 13, in time for Christmas shopping and ahead of schedule. The Mac App Store, announced in October, will likely follow the same path as other App Stores for the iPhone and iPad; offering free and paid applications. The company is rumoured to hold a media event in the coming days to announce the ability to subscribe to publications on the iPad through an iTunes account.
Acer And HP Seeing Drops In Notebook Shipments Due To iPad Effect (Digitimes)
Both Acer and HP are still seeing drops in notebook shipment numbers owed in part to the ongoing iPad effect, Taiwan-based component makers claim. The companies were originally slated to have shipped 3.6 and 4 million notebooks each in November but have reportedly scaled back to maximums of 3 and 3.4 million, a reduction of 600,000 below what each had originally thought. Customers continue to trend towards lightweight computers like the iPad and MacBook.
iPad Interest Only Getting Stronger With Competition (Seeking Alpha)
Using Compete data, the week the iPad was available for purchase, online interest in the tablet was the most researched Apple product ever at nearly 3 million consumers. More importantly, interest in the Samsung Galaxy and interest in the iPad at Verizon is additive to interest to the iPad at Apple. These new products and channels are expanding the pool of potential table shoppers, rather than stealing shopper interest away from the iPad. Looks like Apple is shaping up to have a monster holiday quarter as it approaches 10 million iPads sold (in total).
Apple And Magazine Publishers At A Standoff (All Things Digital)
Apple and magazine publishers remain far apart on bringing subscription versions of their product to the iPad. Publishers are holding out for credit-card numbers and other information on any iPad subscribers they get. Apple won’t go along with providing credit card info at all, but has offered to give subscribers the option of providing basic information such as name and e-mail address. Another sticking point continues to be the 30% that Apple wants for each subscription sold.
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