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AAPL Up To Start 2011
Stocks are starting 2011 with a lift this morning thanks to better than expected manufacturing news out of Europe. Shares of AAPL are on a tear, up nearly 2%. Upcoming catalysts for Apple include the launch of the Mac App Store this Thursday; 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 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).Apple’s iPad Likely Had A Blockbuster Holiday Season, According To Analysts (Fortune)
The iPad was no doubt on a lot of people’s holiday wish lists this year and analysts are predicting a blockbuster holiday season. Analysts estimate Apple sold between 5 million and 7.5 million units for this past quarter. Bill Shope of Goldman Sachs had the highest estimate with 7.54 million iPads sold while Daniel Ernst of Hudson Square had the lowest sales estimate of only 5 million units.
Tablet Sales Set To Skyrocket At The Expense Of PCs (All Things Digital)
Much as they were in 2010, tablet sales will be even more of a high point of 2011. According to Caris & Co. analyst Robert Cihra, tablet sales will more than triple, rising 226% to 54 million units. And of those, Cihra believes Apple will claim 67%. Which would spike iPad sales from around 14 million this year to 36 million in 2011. Meanwhile, PC growth (excluding tablets) is expected to drop from 14% this year to just 9% in 2011.
Apple To Rake In $2 Billion On Apps Alone In 2011 And That Might Be Conservative (TechCrunch)
According to Citibank, the iTunes App Store’s dominance won’t be slowing down anytime soon. In its U.S. Internet Stock 2011 Playbook, Citibank estimates that Apple will pull in up to $2 billion in gross revenue next year via the App Store. And if research firm Gartner’s forecasts are accurate, that number could be low. Gartner believes the global app market in 2010 totaled $4 billion, and that revenues will climb to a staggering $27 billion over the next two years.
Apple Will Hang On To 60% Of The Tablet Market (Barron’s)
International Strategy and Investment Group analyst Abhey Lamba raised his price target on shares of Apple to $400 from $370, while reiterating a Buy rating. Results of a recent survey lead him to believe Apple will hold onto 60% of the tablet market in 2011. Lamba is modelling 27 million iPads to be sold by Apple in the fiscal year ending in September. His figure for the current quarter is 6.7 million units. Lamba is projecting 50 million units for the entire tablet industry this calendar year.
Holiday Sales Of The Galaxy Tab Can’t Be Good With The $100 Price Cut (Droid Life)
Verizon is cutting the price of the Galaxy Tab to $500 contract-free. The $100 drop should take effect soon and will also include $60 of movie rentals from Blockbuster’s app or Samsung’s Media Hub. Anyone who bought the Android tablet within the past two weeks can get a refund for the price difference. Jay Yarow at Business Insider believes that this might suggest that holiday sales were less than stellar.
Verizon Allegedly Buys Domain Names, Yet Another Signal The Verizon iPhone Is On The Way (9To5Mac)
Although this is not a confirmation of the rumoured Verizon iPhone, it looks like Verizon Wireless may have acquired the domain names iPhoneonVerizon.com and iPhoneforVerizon.com. Even if Verizon did purchase those domain names, this is no proof of a soon-launching Verizon iPhone as they could have purchased them for a later date or could have purchased them simply due to rumours and for potential traffic.