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AAPL Down As Market Gets Impatient
Stocks are falling as lawmakers remain at odds over how to avoid a debt default. A weak report on manufactured goods orders isn’t helping either. Shares of AAPL are off about 2%, falling once again below $400. Catalysts include the next iPhone launch this fall 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 10x Enterprise Value / Trailing Twelve Months Free Cash Flow(including long-term marketable securities).Ways Apple Can Keep Shareholders Happy By Using Their Cash (Seeking Alpha)
Apple is no longer the embattled company fighting back the tides of bankruptcy that it was back in 1997. Here are some simple ways Apple can deploy its cash to generate enduring value for shareholders:
- Pay a dividend.
- Buy back shares.
- Make an acquisition.
- Invest it.
There’s no such thing as too much cash, except when it’s sitting on a company’s balance sheet doing nothing.
Apple To Garner 19% Of Smartphone Share In 2011 (IMS Research)
More than 420 million smartphones will be sold globally in 2011, accounting for 28% of total mobile phone sales, according to IMS Research. The survey portrays Apple as making huge gains in the space, buoyed on the sales of 18.65 million and 20.34 million iPhones the last two quarters. That’s enough to garner a 19% share of the global smartphone market. It remains to be seen whether Samsung, which is due to report its earnings Friday, will beat Apple’s smartphone sales (some say it will).
China Market Set To Explode For Apple (mocoNews)
Second quarter data just released by China’s Ministry of Industry and Information Technology point to rapid mobile internet services adoption. The country has 920 million mobile phone users, only 80 million on a 3G network. China is already Apple’s number-two apps market with China Unicorn as the only iPhone carrier currently. Apple COO Tim Cook said Apple is only “scratching the surface” of China with four stores, and a 9% smartphone share, according to Gartner.
Apple Expands App Store Into One-Third More Countries (Engadget)
Apple informed Mac and iOS developers that the App Stores for both platforms are now available in 33 more countries. Not every app is available in every international App Store, either due to licensing restrictions or the preferences of individual developers. The original list of countries included 90 locations, which would bring the total number of countries with access to the iTunes App Store to 123.
The iPad Wins The Enterprise (Good Technology)
Despite Android’s strong overall growth, enterprises appear to continue to be wary of the mobile operating system, according Good Technology. Overall, iPad activations made up 27.2% of all new devices during the second quarter. Android tablets made up just 3.1% of overall tablet activations, a decline compared to the first quarter.
The Solar Powered Mobile Device Is The Future (Digitimes)
Apple is currently evaluating the use of solar panels for future products. Even more exciting is that Apple is reportedly considering the solar firms into its supply chain. This means that Apple is not only evaluating, but is already thinking about who will make the panels. Mass production of organic photovoltaic cells is said to remain an issue, and higher efficiency products are still being tested in labs and are not ready for mass production.
Apple Taps More IC Designers To Bring Down Cost Of iPad 3 (Digitimes)
Apple is tapping a multitude of integrated chip designers from Taiwan to help bring down the manufacturing costs of the unreleased iPad 3. Suppliers include Taiwan-based IC design houses Novatek Microelectronics, Richtek Technology, Capella Microsystems and Integrated Memory Logic as the lucky ones reportedly making their first steps in the supply chain for iPad 3.