The Apple Investor: Tim Cook Speaking Today But Won't Say Anything Interesting

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Tim Cook Giving Keynote At Goldman Sachs Conference Today But Won’t Say Anything Interesting
(Apple)
Apple’s COO, Tim Cook, will be speaking in San Francisco at the Goldman Sachs Technology and Internet Conference this afternoon at 1:10 PT / 4:10 ET.  As most executives adhere to the Regulation Fair Disclosure standard, Tim probably won’t say anything interesting. He will likely discuss trends for the various product lines, the upcoming iPad launch, as well as focus on mobile device strategy.  [webcast here]

Apple Has Big Edge Over Amazon In The Coming Battle For The E-Textbook Market
(TBI Research)
Analyst Rory Maher made calls to universities that have been evaluating various e-readers and e-book formats and found that most expect to partner with Apple’s iPad, not Amazon’s Kindle.  There are three main reasons for this: 1) Apple already has a massive infrastructure built to promote and distribute its products to universities and it will take time for its competitors to replicate that, 2) Amazon and Sony have improved their devices in recent releases but universities are still not satisfied and 3) The iPad appears to solve the portability issues and lack of features many universities have cited for not embracing Amazon and Sony readers.

Plenty Of Pent-up Demand For The iPad And No Pricing Issues, Says RBC Analyst
(CNBC)
In a proprietary report out by RBC, analyst Mike Abramsky states there is actually demand for the iPad at current pricing if you look at it versus the 2007 iPhone launch (which is likely the only data he has to benchmark it against). The report states that 13% of respondents are interested in purchasing an iPad (pre-launch 2010) which was above the 9% interested in iPhone (pre-launch 2007). On the pricing front, only 8% appear unwilling to pay Apple’s indicated iPad prices, below the 28% who balked at initial iPhone pricing (which inevitably led to the September 2007 iPhone price cuts). For calendar year 2010, he estimates 5 million iPad units at an accretive EPS range of $0.07-$0.59 based on other product cannibalization sensitivities. You could drive a truck through that range.

Apple And Others Waging A $1B War Against Stalwart Intel
(The New York Times)
A new report suggests that Apple has likely incurred an investment of about $1 billion in bypassing its traditional go-to Intel and creating its proprietary ARM-based processor, the 1-GHz A4 chip. “Even without the direct investment of a factory, it can cost these companies about $1 billion to create a smartphone chip from scratch,” reports The New York Times’ Ashlee Vance. Apple’s $278 million acquisition of semiconductor manufacturer PA Semi certainly looks like a steal. With Apple’s processor, the company promises it will help preserve the iPad’s battery for up to 10 hours of active use and one month of standby. Let’s hope future releases of the iPhone incorporate this as well.

Apple Not Stopping With iPad, Plans To Bring iPhone OS To New Gadgets
(Computer World)
Looks like the iPad will not be Apple’s last non-iPhone device to run, what we think of now as, the iPhone OS. On its company job board, Apple says it is looking to hire a “manager to lead a team focused on bring-up of iPhone OS on new platforms.” The touchscreen OS would not likely work on Apple TV as it stands today, but maybe there is a product overhaul in the works. MacBook Air pricing could decline if it were to include Apple’s proprietary processor and run the iPhone OS. Perhaps we will see iPads in multiple sizes? Let the rumours begin!

A First Look At Apple’s Massive Data centre Aimed At Taking Over Cloud Computing
(Data centre Knowledge)
Apple’s new $1 billion data centre in Maiden, North Carolina, is 500,000 square feet in size and is widely considered a major part of the company’s cloud computing rollout. Apple’s recent acquisition of Lala (music service) signals a cloud-based music world where its 125 million iTunes users would be able to access their accounts online. Because of the magnitude of the facility, there is also speculation that the company could enter the online video space. Or the facility could be building out its proprietary A4 processors. Whatever it’s for, it’s doubtful anyone will likely get close enough to the facility to tell for fear of being roughed up.

Apple’s Absurd Double Standard: Sex Apps Are Fine When Big Media Makes Them (The New York Times)
Apple’s Philip W. Schiller, head of worldwide product marketing, has admitted that Apple’s porn police are ridding the App Store of all those involving indiscreet content with the exception of those produced by its friends in Big Media. The double-standard likely has something to do with Apple’s desire to have big Sports Illustrated Swimsuit Editions and Victoria’s Secret catalogues for the iPad.

 

 

The Apple Investor is a daily report from TBI Research. You can sign up here to receive it by email.

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