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AAPL Up Strong To End The Week
Stocks are mixed to end a week of earnings as Caterpillar missed estimates, offsetting a strong report from GE and an agreement on an initial Greece rescue package. Shares of AAPL are up strong, while the rest of tech is modestly trading in the positive. Catalysts include the next iPhone launch this fall (sometime in this quarter) as well as the possible iPad 3 ahead of the holidays; continued adoption in China and other 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 9x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
Don’t Even Ask, Apple’s Not Declaring A Dividend (Fortune)
Let’s not start this again. The company increased its holdings in cash and marketable securities swell by billions of dollars, by $10.7 billion, to be specific, in the past 90 days. And analysts come out of the woodwork to demand that the company spend some of those billions buying back shares or issuing dividends or, preferably, both. Unlike companies of similar size and age, Apple doesn’t regularly make acquisitions or pay a dividend to shareholders.
Apple Latest In Line To Take Over Hulu (Bloomberg)
Apple is considering a bid for Hulu, the latest company rumoured to be considering the acquisition; joining Yahoo, Google, Microsoft, Amazon, AT&T, and a host of other technology companies. Hulu would give Apple a new subscription service and represent a possible challenge to Netflix. Hulu’s media- company owners, are offering suitors a five-year extension of program rights, including two years of exclusive access. Not bad.
Apple Overtakes Nokia In Smartphone Shipments (Various via iDygest)
Apple’s June quarter iPhone shipments of 20.3 million units easily surpassed those of former market leader Nokia, which shipped 16.7 million units during the same period, a 34% decline. Nokia still ships more phones overall when you include entry-level devices and feature phones but Apple is clearly the company with momentum. It’s not very surprising to see Nokia’s smartphone sales struggle, as the company is in the middle of a massive reorganization behind Windows Phone 7.
iPad Still Holds 60% Of Tablet Market (Strategy Analytics)
Strategy Analytics reported that Apple’s iOS accounted for 61% of the market share for tablet shipment in the second quarter. Android’s rise from last year is significant. The Google platform was just 2.9% last year, but jumped to 30% this last quarter. Microsoft has yet to launch its tablet-optimised operating system and yet tablets running various versions of the Windows operating system still managed to outsell Research In Motion’s BlackBerry PlayBook last quarter.
Apple Paying Over Half Of Consortium Bid For Nortel Patents (Twitter)
Earlier this month, an Apple-led consortium beat out Google in an auction of thousands of patents from bankrupt Nortel, bidding $4.5 billion for the entire package of patents. Apple 10-Q quarterly report filed with the U.S. Securities and Exchange Commission revealed that Apple’s contribution to that effort totaled $2.6 billion.
iOS Open For Volume Purchasing (TUAW)
Apple announced last week that it would begin offering volume purchasing for iOS apps, and a week later the program is open for enrollment (but still U.S.-only). The new service, which was announced just days ago, allows businesses and education institutions in the U.S. to purchase apps in volume and distribute them within their organisations. The Volume Purchase Program also provides a way to purchase custom B2B apps built by third-party developers to meet the unique needs of your business.