The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Slides In Down Market
Stocks are slipping today as investors take profits ahead of earnings after the best week of trading in a year. Apple will release its June quarter earnings report on Tuesday, July 20, 2010 at 5:00 p.m ET. Other future catalysts include monthly NPD data (Mac / iPod business); iPad and iPhone 4 sales updates; and possible entry into the TV market. AAPL trades at 22x estimated fiscal-year 2010 EPS and 12x Enterprise Value / Trailing Twelve Months Free Cash Flow.
Wall Street Keeps Singing Apple’s Praises
Analysts continue to offer vocal support ahead of the quarter.
- Doug Reid at Stifel, Nicolaus & Company is initiating coverage of Apple with a Buy rating. He believes Apple is well positioned to deliver revenue and earnings growth at levels above those reflected in current valuation. The company will likely continue to gain market share in the smartphone and PC markets and benefit from additional revenue streams in media distribution and mobile ads. His price-target is $340.
- Chris Whitmore at Deutsche Bank believes that the hardware sector is undervalued. Apple, which trades at 15x calendar 2011 EPS (or 11x excluding cash), is particularly cheap considering the strength of both the iPhone and iPad product cycles. He reiterates his Buy rating.
Android Is Coming After The iPhone And Music Could Be The Linchpin (Barron’s)
Charter Equity Research analyst Ed Snyder predicts that the next-generation music platforms (cloud-based) will be the major battlefield in the smartphone war over the next few years. Music is the application that could provide Android OS the chance to leap over Apple. With over 125 million active iTunes users, it’s not going to be easy.
Developers Get Huge But Unsustainable Returns In First Week Of iAd (The Wall Street Journal)
Since iAd launched last week, there have been several news reports on incredible returns. However those results are not likely sustainable. Longer-term, many cite the length of refresh and the sheer number of ads as reasons developers might not make as much money as with other mobile ad platforms. Time will tell, but Apple will likely actively address those two weak complaints.
Apple Climbs To The Top Of Tech In Eight Simple Steps (Seeking Alpha)
A French consulting firm takes a stab at why Apple continually beats the competition by boiling the company’s strategy down to eight steps, including: simplicity, customer-lock in, premium pricing, cross-selling products and thinking different. While this is nothing new, Microsoft should take note.
New Retail Store In Shanghai Draws Crowds (The Wall Street Journal)
Apple’s newest and flagship store in China (Shanghai) opened over the weekend to long lines and crowds. This is the first of 25 new stores planned for China, in efforts to finally capitalise on the expanding Internet and PC markets. There is no set date when the iPhone 4 and the iPad will be available in China however, though Apple’s current Chinese partner for the iPhone, state-owned carrier China Unicom, is in talks to sell the new model.
Happy Birthday App Store, Here’s To More Downloads (themacfeed)
Apple’s App Store turned two years old over the weekend and has gone from roughly 500 apps to over 225,000 apps today, with 5 billion downloads. In investor terms, the stock price has gone from $176 to $259 in the same period.
Business Insider Emails & Alerts
Site highlights each day to your inbox.