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AAPL Rises With The Markets
The markets are rising in early trading after a healthy bond sale in Portugal and signs of strength in the banking sector. Shares of AAPL are up with the rest of tech. Upcoming catalysts for Apple include first fiscal quarter earnings to be announced on Tuesday, January 18, 2011 at 5:00 p.m. ET; monthly NPD data (Mac / iPod business); iPhone and iPad sales updates and carrier expansion (Verizon); new content revenue streams such as video, books, newspapers and social (Ping); moving iTunes into the cloud; and the uptake of the new Apple TV. Shares of Apple trade at 16x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
The Verizon iPhone: Everything You Ever Wanted To Know (MacWorld, Business Insider)
We’ve got answers.
- Availability: The Verizon iPhone will be available for pre-sale on February 3, in stores February 10.
- Mobile Hotspot: The phone will double as a mobile hotspot for up to 5 devices using Verizon’s 3G network. That’s another huge win for Verizon. AT&T doesn’t allow iPhone owners to use their phone as a mobile hotspot for more than one device via USB or Bluetooth.
- Roaming: It does not have a GSM chip for true worldwide roaming. The phone will roam on CDMA networks around the world but will not roam onto GSM networks.
- 3G Not 4G LTE: One slight surprise, the first generation of phones will use Verizon’s 3G network, not Verizon’s faster 4G LTE network (like many Android phones).
- Don’t Rush Out Just Yet: Dan Frommer at Business Insider says not to buy the phone just yet. Apple will likely announce a new phone in June at Worldwide Developer Conference.
Apple To Ship Over 60 Million iPhones This Year (iSuppli)
Apple will ship over 12 million CDMA iPhones this year through Verizon (and China Telecom and KDDI in Japan), according to iSuppli. The research firm sees overall iPhone shipments this year of 61.2 million units, including 49.1 million of previously announced versions of the phone and overall sales are expected to rise 33%.The forecast for CDMA phones includes not only Verizon but also other carriers, including China Telecom and Japan’s KDDI. iSuppli expects Apple to offer a LTE-compatible phone in 2012. Total iPhone units are expected to rise to 98.4 million units in 2014.
LTE-Compatible iPhone Could Be Out Later This Year (Barron’s)
Jefferies & Co. analyst Peter Misek believes Apple could offer a version of its iPhone as soon as October or November that runs on the 4G wireless, or Long Term Evolution (LTE) network standard. How did he come to this conclusion? LTE electronics will improve throughout the year and Apple will want to remain its leadership in the smartphone market. Peter also increased his price-target to $450 (from $365), and reiterated his Buy recommendation. He thinks Apple will be the prime beneficiary of the two biggest trends in computing: 4G wireless services and tablet computers.
The Verizon iPad Is Coming Says CFO (Bloomberg)
Verizon CFO Francis Shammo let it slip that a Verizon version of Apple’s iPad is coming eventually. Of course it is, but it’s still nice to hear it from the source itself. Verizon has been selling the iPad for several months, but it requires a separate device to use the mobile Internet. This new iPad will come with Verizon access built-in. Now the question is will be, will it support Verizon’s new 4G network or just the old 3G network, like the Verizon iPhone.
The iPad Will Remain The Gold Standard Of Tablets According To Analyst (All Things Digital)
There were dozens of tablets on display at CES last week, but none matched the iPad, according to Deutsche Bank analyst Chris Whitmore. Apple will retain its lead in the space for the foreseeable future. In the tablet space, the iPad remains the “gold standard” and the 50+ tablets coming to market this year will battle for second place.
Daily Trader: Here Are Two ETFs To Watch With The Launch Of The Verizon iPhone
Two ETFs that will be heavily impacted by the coming Verizon iPhone: HOLDRS Merrill Lynch Telecom and PowerShares QQQ Trust. Investors with a heavy stake in either of the funds would be wise to keep up-to-date on any new news in the smart phone industry going forward, as it could potentially tip the scales in this ongoing battle between the bitter rivals of AT&T and Verizon.
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