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AAPL Losing Ground
Markets worked their way up to the flat line, but have not been able to extend the move into higher ground. Shares of AAPL are working their way up as well, however still in the red after this week’s gains. Investors continue to be focused on iPhone adoption; update to the iPad coming March 7; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV (see below); and platforms such as Siri, iAd, iBooks and Ping. Shares of Apple trade at 10.1x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Apple Could Sell 55 Million iPads This Year (Forbes)
Sterne Agee analyst Shaw Wu reiterated his Buy rating on the stock, boosting his price-target to $620 from $550, and increased his EPS estimates ahead of the company’s next generation iPad launch next week. He expects the new version to have a higher resolution screen, a much faster processor, Siri voice software and 4G LTE wireless. Wu estimates calendar 2012 iPad shipments of 55 million units, up from 51 million.
Munster Says Apple TV Will Be Incredible… (Bloomberg)
Piper Jaffray analyst Gene Munster was on Bloomberg Radio discussing the forthcoming TV from Apple. Munster is betting the TV will be announced this year and essentially look like a “sheet of glass.” He believes, “It will be the biggest thing in consumer electronics since the smartphone.” Henry Blodget at Business Insider says that’s a huge statement considering the launch of the iPad and considering that Munster is not given to hyperbole.
…And It Will Be: The TV Revealed (Business Insider)
Thanks to work by Wall Street analyst Gene Munster on the hardware side and the New York Post’s Claire Atkinson on the content and cable side, Henry Blodget at Business Insider now has a pretty good picture of what Apple wants to do:
- Build a TV set that is much cooler and easier to use than anything else out there
- Charge twice as much for it
- Assemble a “virtual cable company” with boatloads of great content by cutting deals with content providers
- Pay the content providers practically nothing
- Reduce cable companies to “dumb pipes” by redesigning and taking control over the television interface
- Capture a subscription revenue stream that the cable companies now own
That seems to be the vision.
More Than Half Of Mobile Phone Users In The U.S. Are Smartphone Users (Pew Internet)
According to the latest data from the Pew Internet & American Life Project, of all adults in the U.S. who own some kind of mobile phone, 53% have a smartphone. This marks the first time that the number has reached above 50%. That number is also nearly matched by Nielsen which suggested 48% of mobile phone users in the U.S. were smartphone owners. Android is the leading platform, which 20% of mobile phone owners, followed closely by the iPhone at 19%.
Could the Next Generation iPad Be Called The iPad HD? (Gizmodo)
According to alleged part listings from big manufacturers, this may be the case. Apple might name the new iPad 3 the iPad HD, a good match for the its new Retina-like display. Accessories manufacturers don’t have a clue about Apple marketing plans until the very last minute. They usually get the physical specifications for new product versions in advance, so they can have products ready for launch. They also may get information about naming for product packaging, close to the release. Since the new iPad is being announced next week, it seems that it may be the right time for big manufacturers to get this kind of info.
Apple Stock Has The Potential To Hit $1,000 Per Share (CNBC)
Apple’s stock price has the potential to hit $1,000 as the company has a tremendous amount of growth ahead of it due to the integrated nature of its products and services, Steve Wozniak, Apple co-founder, told CNBC. Apple shares up more than 55% over the past year. “People talk about $1,000 stock price… you know, at first you want to doubt it but I actually believe that and I don’t really follow stock markets,” Wozniak said.
- It’s Not Silly To Think It’s Headed To $1 Trillion… (Business Insider):Apple’s stock still is not expensive on traditional valuation measures. Apple’s penetration of its key product categories is still relatively low. And Apple should have plenty of good news to announce over the next six months.
- …But Here’s Why It Might Not (Business Insider):A lot has to go right. If Apple’s earnings multiple (P/E ratio) of 15x stays the same, which is not a given, Apple’s earnings will have to double for the company’s value to hit $1 trillion. That’s $65 billion in a year. That’s a lot.