The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Up On Strong Retail Numbers
The market is on the rise as retail sales experienced the largest increase in seven months. Shares of AAPL have been trading sideways, and are slightly up in midday trading. Upcoming catalysts for Apple include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion; new content revenue streams such as video, books and social (Ping); moving iTunes into the cloud; and the uptake of refreshed Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Fund Manager Dumps Nearly All AAPL Stake (Reuters)
Investment manager Ken Heebner dumped nearly all of his holdings in Apple during the third quarter, driving the stock down 3% intra-day trading on Friday. Heebner owned 110,000 shares of the personal computing giant on September 30, marking a decline of 90% per cent in his stake. The investor had been one of Apple’s biggest shareholders during the second quarter. Read more at Business Insider.
HP Slate Sells Out Of Measly 5,000 Units, Double What The Company Anticipated (Engadget)
The HP Slate 500 is officially back-ordered, less than a month after its enterprising debut, and Hewlett-Packard claims it is because of “extraordinary demand.” That said, HP reportedly only ever planned a limited production run of 5,000 units, and received orders for 9,000 instead. When demand exceeded supply, HP apparently had to re-hire production workers just to get the presses printing out tablets again, and are presently placating angry customers by offering them over $100 off their $800 purchase as apology. It’s important to note that the iPad sells around 46,000 units a day and it has done that for the last quarter.
Apple Launches Movie Rentals In Japan (MacApper)
Apple launched new cinema material in the Japanese iTunes Store. The Japanese store front now displays over 1,000 movie titles. Users who rent movies from the iTunes Store have up to a month to watch the content and 48 hours to watch content that has been played as many times as they want. Apple TV should arrive to the Japanese market this week enabling customers to rent content from their living room. This should add to continued strength in international growth.
Apple MacBook Air Will Suffocate iPad (The Street)
rumours in Silicon Valley is that people are seeing more MacBook Airs under the arms of Apple workers than the iPad. The iPad wasn’t a flop, but it may soon look like a fad says Scott Moritz at The Street. He believes Apple positioned the iPad as a productivity device. Without a keyboard, it might just be a media player (not according to Dan Frommer’s research). The MacBook has a keyboard and a computer operating system, not a mobile operating system and now only costs a few hundred dollars more.
Apple Issuing Gift Cards For iBooks To Aid Lackluster Demand (Daily Finance)
Apple has certainly reaped success from its iTunes gift cards over the last few years, selling them both online and in retail stores to millions of customers for music downloads. The company is now selling gift cards for iBooks, its e-bookstore platform, in its own stores and also in places like Target. While the obvious reason is to grab more of the buying power from holiday shoppers, the less obvious rationale is to bump up sales directly from the iBook platform, which is rumoured to lag very far behind other e-book stores.
Some Sort Of iTunes Streaming Service Coming Tomorrow (Business Insider)
Apple just put up a big tease on its homepage, advertising a secret surprise announcement, which will make tomorrow a day “that you’ll never forget.” The early consensus is that Apple’s big announcement could be some sort of iTunes streaming service.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.