AAPL Getting Backhanded
Shares of AAPL are down $10 to iPad launch levels ($238) on increasing competition from Google and international weakness fears. Future catalysts for the stock include monthly NPD data (Mac / iPod business); international launch of the iPad next week; and the launch of the new iPhone (June 7 at the Worldwide Developers Conference). AAPL trades at 20x estimated fiscal-year 2010 EPS and 11x Enterprise Value / Trailing Twelve Months Free Cash Flow.
Google Developing A Web-Based iTunes Competitor (TechCrunch)
Yesterday at Google’s developer conference, the company previewed (amongst other things) a downloadable Android Market featuring music which will undoubtedly be a competitor to Apple’s iTunes. Details remain foggy but the product seems to be an iTunes-like system which is web-based with auto-syncing. Partners and pricing were not disclosed. Activating 100,000 Android-based phones daily, Google might actually stand a chance in making a dent in Apple’s music market share. Given the plethora of product announcements and news flow from the Google conference, Jay Yarow at Business Insider pulled together 11 Ways Google Just Slapped Apple.
iPad Supply Can’t Keep Up With Demand, Putting Pressure On Unit Performance (Apple Insider)
Apple can’t supply enough iPads to meet demand, suggesting analyst estimates of 2.5 million iPads sold this quarter could be ahead of the curve. Piper Jaffray analyst Gene Munster called 50 Apple Stores and found that 74% of the stores were sold out, 26% had some WiFi models and none had the 3G model. As a result of these supply constraints, Munster warns the Street’s increasing iPad sales estimates might be getting ahead of themselves. Munster is predicting 1.3 million iPads sold in the June quarter, but says he sees the potential for upside given the strong demand. He maintains his Overweight rating.
Apple Selling More iPads Than Macs (And iPad Inventory) According To Analyst (All Things D)
According to RBC Capital Markets analyst Mike Abramsky, at 200,000 per week, iPad sales are outpacing that of the Mac in the U.S. and are slowly approaching the speed of the iPhone 3GS. And there’s huge pent-up demand for the device as retail checks have indicated widespread iPad shortages at retail stores and at Best Buy. Abramsky is raising his global iPad outlook for 2010 from 5 to 8 million units and is one of the more bullish analysts on the Street. Given the lack of supply, we aren’t so sure of the increasing unit estimate logic unless Apple is reordering in record speeds.
Netflix Making The iPad The Portable Apple TV (MacWorld)
The iPad could become the new Apple TV. Netflix recently updated its digital streaming app for Apple enabling iPad users to pipe their movies to high-definition TVs (via cable connection). Netflix currently streams into set top boxes through a variety of appliances (Xbox, Tivo, etc.) but at 1 million iPads (and growing in sales), it puts Apple in the forefront of the portable movie viewing device of choice.
Europe Who? Dump Your Money Into AAPL (The Street)
Marek Fuchs is calling for investors and traders to look past the European economic fears and trust in Apple. The stock has fallen to levels seen in late March before the company reported a blowout first calendar quarter earnings and officially launched the iPad in the U.S. on April 3. He believes the current stock price provides an incredible entry point ahead of the June quarter, back-to-school as well as the holiday seasons.
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