The Apple Investor: 70% Of Corporations Now Testing Or Deploying iPhones

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

iPhone search screen

COO Tim Cook Didn’t Say Much At Goldman Conference Yesterday, Except That Apple Is Not Going To Make TV Sets  (Business Insider)
Tim spoke at the Goldman conference yesterday.  He didn’t say much new other than confirming that Apple currently has no interest in going into the TV-set business, the way Dell has.  Tim also mentioned one of the keys to Apple’s success: focus. “We say no to good ideas every day. We say no to great ideas in order to keep the amount of things we focus on very small in number, so that we can put enormous energy behind the ones we do choose.”

Bernstein Raises Apple Estimates, Calls The Street’s Expected Margin Collapse Silly

(The Fly on the Wall)
Sanford Bernstein analyst A.M. (Toni) Sacconaghi, Jr. raised estimates based on continued upward margin expansion from the mix shift to iPhones. He expects iPhone revenues to grow from 30% of total revenue to between 45-50% in fiscal 2011.  Assuming all else is equal (Average Selling Price, gross margin, etc.), this would elevate total gross margin by 4-5%. This is contrary to Street estimates which forecast Apple’s gross margin to decline by about 10 basis points over the next 2 years due to a drop in iPhone pricing and deterioration in margin. He rates Apple an outperform with a price target of $250.

Credit Suisse Says Buy Apple (AAPL) Because Of iPhone’s Acceleration

(Credit Suisse)
In a smartphone report out today, Credit Suisse analyst Bill Shope is advising investors to add to Apple positions, stating the stock is attractive at 14 times 2010 ex-cash EPS. He believes the stock is attractive and estimates could continue to rise given the iPhone’s significant profit and cash flow contribution; the iPad’s new profit stream; and the continued recovery of the Mac business. Looks like everyone is out today pounding the table. The main concern here is that there isn’t an Apple bear to be found.

Apple’s Premium Pricing Gives The Company 10%+ Dollar Market Share, Says Needham
(Apple Insider)
In a note out yesterday, Charlie Wolf of Needham & Company highlighted that while Apple’s market share of the home PC market in the holiday quarter was just 5% on a unit basis, the company’s higher pricing granted it 10.5% of the market’s dollar share.  (We’re not sure that this is a positive: If Apple wants to grab major unit share, it will need to cut prices, which will bring the unit and dollar shares closer in line).  Also encouraging was that Mac shipments increased 32%, nearly double that of the entire PC market.  This momentum is likely to continue through the first calendar quarter. Additionally, the company continues to increase share of the educational market which the iPad release is speculated to aid as well. 

Tim Cook: iPad Interest High And 70% Of Companies Testing Or Deploying iPhones
(Mac World)
As mentioned, Tim Cook didn’t offer any new news during his keynote with analyst David Bailey at the Goldman Sachs Tech Conference. However, he highlighted that the company has seen significant interest in the iPad so far and does not anticipate any meaningful cannibalization from the launch. On the iPhone side, Apple sees positive momentum within the enterprise, with 70% of Fortune 100 companies either deploying or testing the device. He also said the company remains focused on its desktop products, which have seen a recent and encouraging rebound. “The ceiling is still far off.” We don’t doubt it.

Apple Leaves Microsoft In The Dust, Now Third Place In Mobile Phones
(Gartner)
Apple knocked Microsoft off for third place in global smartphone sales last year, according to Gartner’s latest report. As worldwide mobile phone sales declined nearly 1% last year, Apple’s market share grew from 8% to 14% while Microsoft’s declined from 12% to 9%. We will see how Microsoft’s new Windows Phone 7 Series will do when it finally appears in December. While it is not an iPhone killer, the company at least showed that it’s not dead and is capable of producing something on its own that’s good enough to compete in the mobile industry.

Google Plans To Clobber Apple’s iTunes
(Wired)
Google hopes to end Apple’s dominance in many things, one of which is the online music world as it moves from single devices to streaming distribution. However, it doesn’t help that Lala (a cloud-based music service), was recently acquired by Apple after it outbid Google. Google is way behind here. Eliot Van Buskirk at Wired says there are five things Google must do if it is going to beat Apple at its own game: lower pricing, make cloud-based music services portable, charge consumers for large cloud-based collections, do something in the living room and continue to leverage search.

Happy Birthday Steve Jobs! Here’s A Look At Steve, The Human
(Cult Of Mac)
Steve Job’s turns 55 today. In his honour, Cult of Mac is replaying (with transcript) his 2005 commencement speech to Stanford University’s graduating class which he delivered just a year after completing cancer treatment. He is uncharacteristically open about life and advises to trust your instincts, follow your heart and do what you love. Great advice from a billionaire.

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

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In

apple tbiresearch-us