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AAPL Finally Deflating
The marketing selling off led by Apple as there seems to be some talk about possibly reducing AAPL’s weight in the NASDAQ-100 index, which would affect ETFs. Shares of Apple are down over 1%, more than the rest of the tech tape. Investors continue to be focused on iPhone adoption; update to the iPad; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as Siri, iAd, iBooks and social (Ping). Shares of Apple trade at 9.3x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
The Tim Cook Round Up: Everything Said At The Goldman Conference (Various)
In case you missed the SAI live blog of Tim Cook’s keynote at the Goldman Sachs Technology Conference, here are other highlights:
- He Won’t Let Apple Fall Apart (SlashGear): In a question related to maintaining all that is Apple, Tim Cook said “Apple is this unique company – unique culture that you can’t replicate. And I’m not going to witness or permit the slow undoing of it because I believe in it so deeply.”
- Tim Hints At The Coming TV (MacNN): In a question relating to TVs, Tim Cook said, “Despite the barriers in that market, for those of us who use it, we always thought there was something there. If we kept following our intuition and pulling the string, we might find something larger. We need something that could go more main-market.”
- Apple’s Approach To Cash (Cult of Mac): Cook called Apple’s spending “judicious” and “deliberate.” “We spend our money like it’s our last penny.”
- iCould Is A Long Game Strategy (The Next Web): Tim Cook announced that its syncing service iCloud now has over 100 million users. Just last month, Cook said that the service had 85 million users, making this a growth of 15 million users in 21 days.
- Worker Safety Is A Priority (9to5Mac): Cook talked about how aggressively Apple has sought to fix the supply chain worker conditions in China, including monthly Fair labour Association audits. He said, “Apple takes working conditions very, very seriously.” In a recent poll, 71% believe that audits will improve the conditions at Foxconn.
Apple Revamps iAd By Slashing Pricing (AdAge)
Apple has cut the price of a minimum amount it charges advertisers to run a campaign on its iAd mobile ad system down to $100,000. Previously, the minimum buy was $300,000. Before that it was $500,000 and before that it was $1 million. Apple’s iAd burst out of the gate with a lot of hype. It has since cooled. Apple has not reinvented the mobile ad industry like some had hoped it would. Let’s hope Todd Teresi can turn it around.
iPad 3 Will Run On AT&T’s And Verizon’s 4G / LTE Networks (WSJ)
AT&T and Verizon will both sell a version of the next iPad that can run on the carriers’ 4G LTE networks, confirming what has been widely reported. So far, Verizon and AT&T are the only two major carriers that offer LTE. They are also the only two carriers that sell the current 3G model of the iPad 2. The report not confirm whether or not other carriers such as T-Mobile and Sprint would sell the iPad 3.
Apple Orders 60-70% More Displays For The iPad 3 Than The iPad 2 (9to5Mac)
ChinaTimes said in a new report that Apple ordered a whopping 65 million 264PPI Retina displays from both LG and Samsung. Both have reportedly already begun production, as well. It is not clear if this number includes orders from Sharp, who is rumoured to be building displays from the iPad 3. For comparison, Apple ordered 40 million displays for the iPad 2. That’s a substantial 60-70% increase over iPad 2. If these reports are true, Apple is thinking big for its new tablet.
Apple Accounts For One Fifth Of All Consumer Electronic Sales (NPD)
NPD’s report of 2011’s trends in electronics sales shows that Apple accounts for nearly one fifth of all U.S. revenue in consumer electronics. HP is a distant second, having generated only about half as much revenue as Apple during the year. Results show shifting trends in the consumer electronics landscape. The share of overall sales revenue for PCs declined by 0.5 per cent year-over-year (a decline that would have been steeper without Mac sales). The overall share of TV and video game hardware sales also declined year-over-year.
Apple Ready To Quadruple Investment In Outsourcing To India (The Next Web)
At the end of January, Apple CIO Niall O’Connor visited India, meeting with two of the country’s biggest consultancy firms. Apple already contributes millions of dollars to both companies, but is reportedly ready to quadruple its investment in India thanks to its industrious workforces and lower outsourcing cost. Apple’s current India spend totals around $100 million, accounting for nearly a fifth of its global outsourcing spending.
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