The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Off In A Mixed Market
The market is all over the place after the Federal Reserve lowered growth outlook, and during Bernanke’s press conference. Shares of AAPL are selling off while the rest of the tech tape has currently recovered in the positive. 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 9.3x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Did The Surface Just Make The iPad Obsolete? Don’t Be An Idiot! (Cult Of Mac)
Despite some huge holes in Microsoft’s big announcement, some people claim that the Surface just made the iPad and MacBook Air obsolete. While the Surface looks like an intriguing product, saying that it’s better than the iPad and MacBook Air at this point is absolutely absurd. The truth is that the Surface looks like a great piece of tech, but it’s all vapor at this point. There’s no real specs announced. There’s no price announced. There’s no release date announced. And the journalists who were at the event only got to play with the prototypes for mere minutes.
The Surface Won’t Stop The iPad (Topeka Capital Markets via Business Insider)
Microsoft’s new Surface tablet will do nothing to slow down the iPad, says Apple analyst Brian White of Topeka Capital Markets. “If imitation is the sincerest form of flattery, the compliments from Microsoft poured down like a torrential storm on Apple last night. At the same time, this event indicates to us that Microsoft is still searching for its own identity in the post-PC era, something that has come naturally for Apple with the rise of the mobile Internet.” He says Microsoft’s tablet is a bigger threat to Android than Apple. He also says Microsoft might be able to carve out a spot for itself in the enterprise world.
Apple Will Likely Be The Most Profitable Company Ever (The Mac Observer)
Apple is, “poised to be the most profitable company ever,” according to Topeka Capital analyst Brian White. Thank you Tim Cook. White believes “investors should think of Apple’s market cap potential in terms of trillions, not billions.” As each of the other mega-valuation companies (Cisco, GE, Microsoft, Exxon, GE and Intel) has gone, many fear Apple to go as well. He says this is one area where looking to the past isn’t necessarily a good way to predict the future. “Most of these companies enjoyed rich P/E ratios (except Exxon) when crossing $500 billion and the tech-related companies had monopoly-like market share positions, neither of which is the case for Apple.”
Why Apple Is Going ‘Containment’ And Not ‘Thermonuclear’ On Google (Search Engine Land)
Danny Sullivan has a point. He keeps hearing people talk about Apple finally going “thermonuclear” on Google with the forthcoming iOS 6 mobile operating system. No, it hasn’t. In fact, there are good reasons why it can’t and has opted to contain Google instead. When Siri launched on the iPhone 4S, it’s one of the few times where Apple shipped a “beta” product. But it allowed Apple to begin containing Google in search on Apple’s own devices. Siri would decide where a search should go, and it didn’t always go to Google. That containment flew under the radar. It was a subtle way to dump Google without consumers ever realising it.
Foxconn Looks To Invest More In Sharp, Sparking More iTV rumours (SlashGear)
Apple’s major manufacturing partner, Foxconn, has revealed interest in purchasing more shares in Sharp, raising speculation that the two companies are working towards supplying Apple’s rumoured television set. Foxconn already has a 10% stake in Sharp and a 46% stake in Sharp’s state-of-the-art LCD manufacturing plant in Sakai, Japan. Additionally, the two companies are partnering to open a new plant in Chengdu, China for manufacturing iPhone displays. The strong alliance puts Foxconn and Sharp in a good position to take on Apple iTV production.
Why Security Could Be Apple’s Greatest Threat (Read Write Web)
Apple’s biggest threat may come from hackers. The company itself recently took public blame for the largest Mac infection ever. If Apple continues to stumble on security, it risks losing a key pillar of its leadership in consumer technology. A string of major malware infections on the Mac would shake people’s perception of Apple security and foster suspicion about security vulnerabilities on the iPhone and iPad. Customers might then start looking more closely at Microsoft and soon that Windows is more secure than the Mac. Is it though? I’ve had more viruses on a PC and not one on my Mac.
Business Insider Emails & Alerts
Site highlights each day to your inbox.