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AAPL Recovering With Market
Markets are staging a mild recovery after the trade deficit missed expectations. Shares of AAPL are back in the black. Get ready for Apple-mania. Apple’s developer conference (WWDC) is slated to start Monday where Tim Cook will take the stage. The company is expected to make a ton 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 9.0x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).What’s Apple Going To Announce Next Week? (Gizmodo)
Ahead of the WWDC, here’s a list of what’s known, what’s thought and what’s wished for:
- iOS 6
- New MacBook Pro
- New MacBook Air
- OS X Mountain Lion
- Mac Pro
- Apple TV Apps
- New iPhone
- Apple HDTV Set
Well, one can dream.
Macs Are Invading The Enterprise (Macworld)
The Windows-dominated work world might be coming to an end. Gartner analyst Michael Silver shared the firm’s outlook on what exactly is going on in the enterprise desktop. Windows is not only being challenged by newer tablet technologies, a subtle shift is also happening that sees users demanding Macs. At most, there might be a 5% installed base of Macs. But more and more companies are “embracing” them, with 64% saying they will likely allow more Macs into their businesses over the next few years.
iOS To Provide 2% Of Google’s Total Revenue In 2012 (Apple Insider)
Devices running Apple’s iOS, the main competition for Google’s Android OS, are expected to power the largest chunk of the search giant’s mobile revenue and will represent 2% of the company’s total revenue for 2012, according to Gene Munster at Piper Jaffray. He estimates Google will take in some $4.5 billion in mobile revenue over the year and Apple’s iOS platform is set to be one of the biggest contributors at 40%. The estimate is conservative compared to a March report that found 80% of Google’s mobile revenue came from iOS.
Windows Phone to surpass Apple’s iPhone by 2016 (Apple Insider)
IDC estimates that the share of handsets running Microsoft’s Windows Phone will grow to take nearly 20% of the market by 2016 at the expense of iOS and Android. Microsoft’s platform is forecast to have a 19.2% share of the market by the end of 2016. Android is expected to continue its domination through 2016 with 52.9% of the market. By the end of 2016 Apple is seen as having a 19% share of the overall smartphone market.
Apple Adding Baidu As Search Engine In China (Bloomberg)
Just as it’s dropping Google Maps, Apple is also courting Google’s greatest enemy in China. In line with previous reports, Apple plans to add Baidu’s search engine on iPhones in China, part of a push to broaden its services and user base. The agreement to add Baidu, China’s largest search engine, to the lineup of Web tools on the iPhone could be announced as early as next week at the WWDC. A deal with Baidu, which handles about 80% of China’s Internet search queries, fits Apple’s plan to gain a bigger toehold in the largest mobile-phone market. It also gives users an alternative to Google.
The New iPad’s Closest Competitor Is The Old iPad (All Things Digital)
According to new data from Consumer Intelligence Research Partners (CIRP), the breakdown in sales of the iPad 2 and the new iPad between February and April of 2012 were roughly similar. The research firm says that since launch, the new device accounted for 59% of total iPad sales, while the iPad 2 accounted for 41%. In other words, demand for the-second generation iPad, at its reduced price, isn’t all that much less than demand for the new iPad at full price. So keeping the iPad 2 around is proving to be a savvy business move, and one that’s almost certainly buttressing Apple’s already dominant share of the tablet market.
New iPhone Buyers Are Android Owners Jumping Ship (Business Insider)
More than a third of those who purchased iPhones in April were customers who gave up on their Android or Blackberry smartphones, according to a new survey from the Consumer Intelligence Research Partners (CIRP). Some 38% of people who bought an iPhone that month said their previous phone was an Android or Blackberry, and another 4% said their last phone was a Palm smartphone. By comparison, just 34% said their previous phone was an iPhone. This suggests Apple actually sold more iPhones during this period to customers who fled from other smartphone companies than they sold to existing customers upgrading from older iPhone models.
iPad Nano Pictures Surface Ahead Of WWDC (ZooGue)
An anonymous source has provided pictures of an iPad with miniature proportions. The images give a great look at the housing of what may be the “iPad Nano,” which has recently attracted so much speculative attention. Instead of being the rumoured 7.85 inches diagnostically, the display will take on a 7.58 inch form factor. When the iPad was originally released it was criticised for being a “giant iPhone”, but today it is the leader of the tablet breed. A 7.58 inches iPad might provoke such comments, but Amazon and Samsung have proven that their tablets are not strictly made to be 10.1 inches.
CHARTS: The Hedge Fund Industry Lives And Dies By Apple (Business Insider)
A stunning slide from Adam Parker at Morgan Stanley in his latest monthly macro strategy. One chart shows the ongoing decline of hedge fund profits ever since the mid 90s. The second basically shows that over the last few years, hedge fund returns have become more and more closely related to Apple. We know that Apple is a freak of nature stock that so many hedge funds have been bullish on for years. But we didn’t realise the extent to which the industry performance were correlated.
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