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AAPL Off With Markets
Stocks are falling sharply after the disastrous jobs report. Shares of AAPL are off as well, however not as much as the rest of tech. Upcoming events Apple’s developer conference (WWDC) slated to start June 11 (where the company is expected to make a slew of announcements). 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 as well as the upcoming refresh; the introduction of the anticipated Apple TV set; and platforms such as Siri, iAd and iBooks. Shares of Apple trade at 9.1x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Apple TV Set Coming, Just A Matter Of When (Apple Insider)
Gene Munster at Piper Jaffray sees Apple’s full-fledged television set retailing between $1,500 and $2,000, with screen sizes between 42 inches and 55 inches. Such a product would add between 4-8% to Apple’s calendar year 2013 revenues. He expects that the product will be unveiled later this year and will hit the market about six months after it is announced. The key focus for Apple will be creating a revolutionary TV interface, likely including Siri, compatibility with third-party devices, and potential integration with content guides.
Apple Makes Nearly Twice As Much On The Cheapest iPhone Than The Lumia (WSJ)
Nokia’s new top-of-the-line smartphone sells for $200 less than Apple’s cheapest iPhone 4S. But under the hood, Nokia actually pays more for the phone’s components, according to IHS iSuppli. The components of the Nokia Lumia 900, which sells for $450 without a phone contract, uses $209 worth of parts. Meanwhile, the comparable 16-gigabyte iPhone 4S, sold for $649 without a phone contract, is made of components that cost $190. The findings indicate Apple makes nearly twice as much on iPhone sales as Nokia does on the Lumia 900, excluding costs like manufacturing, marketing and distribution. That’s a big problem for Nokia.
Apple Destroys Android When It Comes To Web Usage, Bad News For Google (Business Insider)
Recent reports suggest Android users don’t browse the mobile web. That begs two questions: who is using Android and why aren’t they reading or buying anything? If that lack of usage intensity extends to the app market–if Android users don’t really care about using their phones as a platform to do anything other than make phone calls and send email–then Android’s value as a platform will be vastly lower than its raw market-share numbers would suggest. And that’s bad news for Google.
Gruber Over-analyses The WWDC Schedule (Daring Fireball)
Taking into account the size of the rooms sectioned off and the TBA sessions, Apple guru John Gruber speculates that Apple is set to announce a new developer platform, like, say, apps for Apple TV. It’s one of the few things he can imagine that would be big, new, and different enough to warrant that much attention at WWDC. Combine these holes in the session schedule with Jonathan Geller’s report today at BGR Apple to Demo New TV OS at WWDC in Two Weeks and he’s more convinced it will happen.
Apple Turns Its Inventory Every Five Days (The Atlantic via Business Insider)
Apple turns over its inventory once every five days. That’s part of why a new report from the technology research firm, Gartner, ranked Apple’s supply chain the best in the world. And it’s pretty amazing when you think about it. This is a company that sells hundreds of millions of hardware gadgets all over the world and yet it doesn’t actually need to stockpile its goods. The only company on Gartner’s list of 25 companies that turns over its product faster is McDonald’s.
Mac Sales Grew 40% In Asia-Pacific Last Quarter Despite Lack Of New Products (Apple Insider)
Asia-Pacific was highlighted as the primary “bright spot” for the Mac in the last quarter by analyst Charlie Wolf at Needham & Company. Shipment growth of 40% in the region offset negative year-over-year growth in the U.S. and Europe. Shipments were down in the U.S. and Europe because Apple didn’t update any of its Mac lineup in the first quarter of calendar 2012. But the lack of new products didn’t hinder growth in Asia-Pacific, where Apple easily outpaced the overall PC market’s year-over-year growth of just 3.6%. In the business market Mac sales grew by 10.4% year over year, easily outpacing Windows, which saw its business sales grow just 0.1%.
CHART OF THE DAY: Check Out The iPad’s Growth (KPCB via Business Insider)
The adoption of iPads continues to amaze. Check out this chart from Kleiner Perkins’ Mary Meeker shows how quickly people have purchased iPads compared to iPhones and iPods.
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