THE APPLE INVESTOR: This Is What Happens When AT&T And RIM Work Together To Kill The iPhone

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blackberry torch

via Ubergizmo

AAPL Up As Market Drops
Markets are taking a dive to kick off the holiday week as June PMI slips and ISM misses big. Shares of AAPL are fighting the tides, up nearly 1%. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation in the fall; iPad adoption; 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 9.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Goldman Puts A Lofty Price-Tag On iPhone And iPad Users (Fortune)
According to Goldman Sachs’ Bill Shope, Wall Street tends to view Apple as a hardware company that is only as valuable as its next hit product, as if its loyal iPhone and iPad customers or sticky iOS software platform were worth nothing:

  • iOS users are a loyal bunch (94% loyalty rate)
  • It costs a lot to switch
  • Installed base matters (281 million with a lifetime value of $1,053)
  • Apple’s greatest value is its customer base (281 million times $1,053 is $295 billion)

That’s about 55% of Apple’s current market capitalisation.

AT&T Tried To Take On The iPhone With RIM (The Wall Street Journal)
The Wall Street Journal did a piece on the downfall of RIM recently. Most interesting was the following: AT&T “approached RIM about a plan to develop a touch-screen rival to the iPhone, said two former RIM executives. The chief of AT&T’s mobile division visited RIM’s research and development team in Waterloo to stress how important it was for AT&T to have a successful BlackBerry product to sell, according to people familiar with the visit. RIM said the objective of the visit was to develop “a differentiated, unique BlackBerry experience for AT&T customers.” The result was the Blackberry Torch, but it was riddled with hardware and software shortcomings.

Apple Gets Samsung’s Galaxy Nexus Smartphone Banned In U.S. (Bloomberg)
Samsung was barred from selling its Galaxy Nexus smartphone in the U.S. by a second court ruling last week in its global patent dispute with Apple. The ruling by U.S. District Judge Lucy Koh, follows her June 26 order blocking U.S. sales of Samsung’s Galaxy Tab 10.1. “It’s a big deal,” said Carl Howe, an analyst with Yankee Group. “Samsung is perhaps the best and most successful challenge to Apple in the smartphone business, so to win an injunction against your biggest competitor is pretty profound.” Google gave about 6,000 developers and members of the press a free Galaxy Nexus at its big I/O developers conference this week. Steve Jobs is actually winning his thermonuclear war.

Will Apple Launch An iPad Mini This Summer? (Digitimes)
Apple is reportedly set to launch an upgraded 9.7-inch iPad in the summer of this year, according to a Chinese-language publication Apple Daily. Despite the highly doubtful nature of the paper’s claims based on the fact that the current iPad is only a few months old, the report can still be expected to ripple through the component supply chain and stir up the many tablet PC OEMs and vendors trying to emulate Apple’s success with me-too products of their own design. The upgraded iPad is said to feature indium gallium zinc oxide (IGZO) panel technology to allow the device to feature an even thinner design and longer battery life. Panel supply will be shifted from Samsung to Sharp.

Ultrabooks Are Saving The PC Industry Against Apple (NPD via BGR)
For people who want super-thin computers and who don’t feel like paying more than $2,000 for a Retina MacBook Pro, ultrabooks are a blessing. And according to the NPD Group, ultrabooks are helping to keep the U.S. notebook market afloat as they “are off to a fast start capturing nearly 11% of all $700+ Windows notebooks sales at U.S. retail through the first five months of 2012.” What’s more, ultrabooks’ share of Windows notebooks costing at least $700 has steadily climbed month by month this year, going from just over 6% in January to more than 15% in May; a blessing for the Windows notebook industry.

Virgin Mobile Selling Pre-Paid iPhones, Here Comes The Low-End Market (Businessweek)
Virgin Mobile (Sprint-owned) began selling the iPhone last Thursday and became the second prepaid carrier in the U.S. to offer the device. The carrier will sell the two handsets in it’s new stores, the first of the their kind for Virgin Mobile. If these stores prove to be successful, Virgin Mobile may eventually open additional locations nationwide. Virgin Mobile is selling the contract-free iPhone 4S 16 GB for $649 and 8 GB iPhone 4 for $549. Plans start at $35 per month for 300 minutes of talk time and unlimited data and messaging.

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