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AAPL Leads Rising Tech Tape
Stocks are up with solid gains in early trading. The buying effort is broad with energy, industrial and tech leading the charge. Shares of AAPL are up about 1.5%. Catalysts include second calendar quarter results to be released on July 19th at 5pm ET; the next iPhone launch this fall as well as the possible iPad 3 ahead of the holidays; smartphone push into China and emerging markets; iCloud rollout and adoption; the continued evolution and next generation of Apple TV; and new platforms such as books / publishing and social (Ping). Shares of Apple trade at 12x Enterprise Value / Trailing Twelve Months Free Cash Flow(including long-term marketable securities), low versus historical standards.
Apple In For Stellar Second Half Of Its Fiscal Year (Business Insider)
Get ready for a “stellar back half” of the year for Apple says Citi analyst Richard Gardner. He believes “a steady stream of new products beginning in July and culminating with the introduction of a higher resolution iPad in October should set the company up beautifully for the peak holiday selling season this year.” New products include the iPhone 5, new MacBook Airs, iPad HD, iOS 5, OS X Lion, and maybe a refreshed Apple TV. In short, there’s a lot to be optimistic about with Apple right now.
Sprint And T-Mobile Are Likely To Get Next-Gen iPhone (Barron’s)
Piper Jaffray’s Gene Munster speculates that Apple’s next version of the iPhone will also be offered by Sprint-Nextel and T-Mobile, basing his conjecture on the technical ability of Apple to engineer a combined GSM/CDMA phone. It would streamline Apple’s build plans for the device by simply combing circuitry for the two air interface standards. Plus, Verizon, he notes, would like a “world phone” that runs on both its own network and GSM networks abroad, adding incentive to make a combined device. He reiterates a Buy recommendation on Apple shares and a $554 price target.
Apple’s Expansion Into The TV Market Could Boost Market Cap By $100 Billion (CNet)
Could Apple be at work on a TV set? Gene Munster has been trumpeting that theory for years now. Joining him is UBS Investment Research analyst Maynard Um who suggests that Apple’s in a good position to boost its market cap by anywhere from $50 billion to $100 billion by getting into the TV business. Whatever Apple could be creating would likely be a mix of flat-panel TVs and Internet connected set-top boxes which heavily leverage the company’s existing media services.
App Store Downloads Up 60 per cent Over 2010 (GigaOM)
The already fast-moving app economy on iOS has shot up again in the past year, aided by the hot-selling iPad and iPad 2 and increased distribution of the iPhone. According to busy analyst Gene Munster, App Store downloads are up 61% this year over 2010, with users downloading an average of 83 apps, up from 51 last year. Check out the CHART OF THE DAY to see just how much Apple is making in the App Store.
Is Apple Looking For A Second iPad Manufacturer To Keep Up With Demand? (Digitimes)
Apple is rumoured to be looking to add a second manufacturer for the iPad in order to meet demand for the rumoured iPad 3 / HD, this fall. Currently, Foxconn is the sole iPad manufacturer. Media outlets have been abuzz about a rumoured iPad 3 to be released this fall, although many are led to believe that such an early release is very unlikely.
Estimates Range From 6 To 9.5 Million iPads Sold In The Third Fiscal Quarter (Fortune)
Ahead of Apple’s third fiscal quarter earnings report, Fortune has tapped 39 analysts and has created a roundup of their iPad sales estimates. Amateur Navin Nagrani forecasts 9.5 million iPads were sold during the quarter, while Gleacher’s Brian Marshall, Hudson Square’s Daniel Ernst and Think Equity’s Mark McKechnie agree on the low end at 6 million units.
China’s Smallest Carrier To Get iPhone Later This Year (Reuters)
China Telecom plans to begin selling Apple’s iPhone by the end of this year (November), breaking rival China Unicom’s exclusive hold on the iPhone market in the country, according to sources. China Telecom is China’s smallest carrier with a mere 106 million subscribers. Thanks to the existence of CDMA models, the company has all the technology and just needs to complete a deal.
Apple Losing Top Patent Lawyer Amidst Cloud Of Patent Disputes (Reuters)
Apple’s top patent lawyer, Richard “Chip” Lutton Junior, is about to leave the company. He is being replaced by BJ Watrous, a former IP lawyer for HP. There is no explanation given for why Lutton is leaving, but it sure is strange timing. Apple is in the middle of a series of complicated patent disputes with a number of mobile companies. It is suing HTC, Samsung, and Nokia. It’s also being sued by those companies.
One-Third Of All U.S. Adults Have A Smartphone (Pew Internet Project)
In a measure of smartphone ownership, the Pew Internet Project found that one third of U.S adults own smartphones. The May survey found that 83% of U.S. adults have a cell phone of some kind and that 42% of them own a smartphone which translates into 35% of all U.S. adults. The definition of a smartphone owner includes anyone who falls into either of the following two categories:
- One-third of cell owners (33%) say that their phone is a smartphone.
- Two in five cell owners (39%) say that their phone operates on a smartphone platform
Some 87% of smartphone owners access the Internet or email on their handheld.