THE APPLE INVESTOR: Why Is Tim Cook In China?

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Tim Cook

Photo: AP

AAPL Up With Markets  
The market is up following Bernanke’s speech at the National Association of Business Economics, the dollar however is diving. Shares of AAPL are up after a morning dip. Investors will be looking for the new iPad adoption; iPhone penetration, especially in China and emerging markets; market share growth of the Mac business; the evolution of Apple TV; and platforms such as Siri, iAd, iBooks and Ping. Shares of Apple trade at 11.3x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).The Reason Behind Apple’s Success Over Google (Business Insider)
It’s no secret that Google’s products often fail to win the hearts and minds of mass-market consumers the way Apple’s do. And it’s the result of weaker product design. Google designs its products for geeky technologists, while Apple designs for normal humans. Instead of hiring all those engineers from Stanford and MIT, perhaps Google should start looking at San Jose State, where most of Apple’s employees come from.

Half Of New iPads Sold Will Be LTE Connected… (GigaOM)
UBS believes the new iPad will be the catalyst that drives consumers to connect their tablets to mobile broadband networks. In a new report, UBS predicted there would be a near 50 / 50 split between Wi-Fi only and 4G iPads sold, driven in particular by strong demand for super fast LTE connectivity in the U.S. “With an HD screen, faster processor and higher-resolution camera, we believe this device will drive demand for faster connectivity,” says analyst John Hodulik. Previous generations of iPad split 60 / 40 in favour of Wi-Fi.

…But LTE Is The Least Popular Feature (Localytic)
The new iPad’s main selling points are updated internals, a Retina display and available 4G LTE connectivity. The first two seem to be driving the quick sales, but the cellular-enabled variants seem to be comparatively unpopular, according to Localytics. Only 6% of iPad app sessions are on cellular networks and of cellular connected iPads, only 1.5% are via a 4G network. Of the 4G enabled iPads, only 36% come from a carrier network.

Despite Reports To The Contrary, Apple Not Making A Dent In Enterprise (Business Insider)
A CEO who monitors 110 million enterprise devices, giving him a pretty good perspective on which hardware makers are dominating the space and which aren’t, says that Apple isn’t one of those companies. Despite all the hype about Apple in the enterprise, he simply says “We don’t see it yet.” Apple devices account for maybe 1-2% of all those 110 million devices. That number is growing, but not meaningfully.

Tim Cook Reportedly Spotted In China (TIME)
CEO Tim Cook was reportedly spied by a blogger who snapped a casual picture of him as he strolled through an Apple Store in Xidan, Beijing. Assuming it really is Tim Cook, what he’s doing there? China is one of Apple’s most important markets. Then there’s Proview and Foxconn. Cook may also be visiting to chat further with cellular titan China Mobile. Steve Jobs never went to China.

New iPad Already 7.3% Of Apple Tablet Share Based On Internet Traffic (Chitika)
Despite being on sale for a little over one week, the new iPad already accounts for ~7% of Apple tablets accessing the internet, according to Chitika Insights. The third-generation iPad’s U.S. internet traffic presence has grown to some ~7% of all iPad models, with the original iPad and 2011 iPad 2 taking the remaining ~93% per cent share.

China Unicom Adds 14% Rise In Profits Thanks To The iPhone (WebProNews)
China Unicom executives reported that the company’s partnership with Apple has done better than expected, and added to a 14% rise in profits for 2011. Specifically, Li Gang, Executive Director at China Unicom, described the partnership as having “generated better-than-expected results.” When the iPhone was launched in China in 2009, China Unicom was the exclusive partner in that country for over two years.

Best Buy An Important Distribution Partner For Apple (All Things Digital)
Apple’s move to make Best Buy an outlet for the iPhone back in 2008 is proving a wise one. Over the past few years, the retail chain has become an increasingly important outlet for Apple, extending its reach and distribution via its 1,100 stores. About 600 of them host an Apple Store-within-a-store, most of those in geographic locations that are too small to support a dedicated Apple store. And they’re selling a lot of iPhones. Almost as many as Apple itself, according to new data from Consumer Intelligence Research Partners (CIRP).

Apple’s WWDC Looks To Start Week Of June 11 (Cult of Mac)
Apple’s annual Worldwide Developers Conference looks set to begin in early June. San Francisco’s Moscone centre has been booked up for a mysterious “corporate meeting” for one week starting June 11. Last year the company broke tradition by delaying its iPhone event until October. It’s unclear at this point when this year’s iPhone event will take place. Recent rumours have suggested that Apple will wait until fall once again.

Apple Stock Takes A Nose Dive On Friday Due To Error (AppleInsider)
The drop in Apple’s stock price has been linked to volatility caused by three erroneous trades from the BATS systems. Just before 11:00 am, the stock plunged to $542.80, down more than 9%. Five minutes later, trading resumed at a price just under $600. Apple shares leveled out and finished the trading day at $596.05, down 0.55%. As such, BATS Global Markets Chief Executive Joe Ratterman announced that he was withdrawing his company’s IPO after Friday’s fiasco.

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