THE APPLE INVESTOR: Samsung Is Dominating Apple In Worldwide Smartphone Sales

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Photo: Samsung

AAPL Wavering In A Positive Market
Markets are up after surprisingly strong housing starts. Shares of AAPL are waffling along break-even. The company will report earnings for its third fiscal quarter on Tuesday, July 24. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation in the fall; iPad adoption and the rumoured launch of a smaller version; market share growth of the Mac business lines; the introduction of the anticipated Apple TV set and related products; and evolution of platforms such as Siri, iAd and iBooks. Shares of Apple trade at 9.7x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Samsung Leaving Apple In The Dust (VentureBeat)
Samsung may finally have gotten the upper hand in the smartphone battle, according to a recent Reuters poll. The company asked over three dozen analysts which manufacturer they thought came out on top during the second quarter. The answer is Samsung, which is estimated to have moved 50 million phones in the past three months compared to Apple’s 30.2 million. What’s surprising about Samsung’s 50 million estimate is that the company announced an identical total for worldwide sales for its entire Galaxy S line. So either analysts are far too bullish, or Samsung has sold as many phones in the past three months as it has Galaxy S phones over the past two years.

The Next iPhone Is Already The Best Selling Phone Of All Time (Business Insider)
That has gotta hurt for Microsoft. Apple’s next iPhone is already guaranteed to be a blockbuster hit. Piper Jaffray analyst Gene Munster surveyed 400 consumers and found that 65% expect their next phone to be an iPhone. Of these, 51% said they were specifically waiting for the iPhone 5. Moreover, Munster’s survey found that 94.2% of iPhone users plan to buy another iPhone for their next phone. These two data points suggest that as many as 80 million iPhone 5 sales are already “in the bag.” Do you know anybody that is planning to switch to the iPhone from their current phone?

Apple Causing At Least Half Of The Market Decline In PCs (Apple Insider)
Apple’s iPad is expected to continue dominating the tablet market with a share higher than 60%, while PC sales are projected to continue their downward trend this year, according to analyst Rob Cihra with Evercore Partners. He sees traditional computer sales dropping 4% year over year in the third quarter of calendar 2012, while overall PC growth for the year will be flat with 2011. He says that Apple’s iPad are responsible for “at least half” of the PC market’s current decline, forecasting Apple to sell 69 million iPads in calendar year 2012.

Are Fewer Events And Less News Killing Apple’s Buzz? (iLounge)
A long time is passing now between major announcements, and the fewer events are getting overloaded with accessories and OS updates. So why has Apple decided to leave such gaping holes in its information timeline? It is becoming problematic for nearly everyone: reporters are faced with crushingly busy event days and slow periods in between, developers are left with shorter launch windows, Apple loses the publicity value of separate announcements, and, most importantly, consumers are flooded with information on only a few occasions all year, making it extremely easy for important info to slip through the cracks.

Why Is Apple’s P/E So Low? (Forbes)
It is extremely rare for a stock to have this problem: accelerating growth with a P/E lower than the broader market. This is Apple. It is an attractive stock because its P/E is below its growth rate and because its revenues, earnings and margins continue to improve. So why is it trading lower than the S&P? Institutional investors may be “maxed out” on how much Apple they can own. But if the stock price appreciates relative to other stocks, thus becoming even a bigger percentage of their portfolio, institutional investors will have to pare back even more. There’s a whole retail market out there dying to get in. Why not a stock split for the people out there who think that owning 2 shares at $300 is somehow better than 1 share at $600?

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