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AAPL Down On Estimate Cuts
Data out this morning shows private employers added jobs in a sign of economic improvement and acquisition activity, which is lifting the markets in early trading. A flurry of M&A activity is also a signal that certain stocks could be undervalued. Shares of AAPL are off this morning as one analyst trims estimates in light of the rumoured delay of the iPhone 5. Upcoming catalysts for the stock include any update regarding Steve Jobs‘ healthy return; the WWDC slated for June; monthly NPD data to gauge Mac / iPod businesses; iPad 2 sales updates; iPhone sales updates, the push in China, as well as the launch of the iPhone 5 (whenever that may be); new revenue streams such as video, books / publishing and social (Ping); moving iTunes into the cloud; and the continued evolution and adoption of Apple TV. Shares of Apple trade at 14x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).Wall Street Weighs In At The End Of The Quarter (Various)
It’s that time of year. First calendar quarter closes tomorrow.
- iPad Demand Causing Stock Outages Globally (Barron’s): Needham & Co. analyst Charlie Wolf raised estimates for Apple on higher than anticipated iPad 2 sales. He now estimates 30 million iPads in total will be shipped the fiscal year ending this September, up from 20 million before. He raised his revenue this year to $103.9 billion from $98.9 billion, and raised his EPS from $22.25 to $23.25 per share He maintains his Buy rating and $450 price-target.
- Japan Will Constrain Apple Components; Outlook Might Be Cautious (Bloomberg): Apple production of iPhones and iPads may be “meaningfully impaired” in the coming months in the aftermath of the earthquake and tsunami in Japan, according to Andy Hargreaves Pacific Crest Securities analyst. He believes Apple has been left with as little as two months of inventory for key components for the iPhone and iPad tablet. Therefore, the company’s forecast for the June quarter could be “more conservative than usual.”
- Apple Set For Some Real Gains In China (Fortune): Good news for Apple in the results of an Alphawise / Morgan Stanley survey. Of the 2,000+ respondents, 88% expect the next phone they bought would be a smartphone. And 30% of those who planned to buy a 3G phone said they expected to buy an iPhone. If price were not a consideration, that number would jump to 53%.
IDC Predicts Windows Phone Will Beat Blackberry And Apple by 2015 (Read Write Web)
And Android will be number one. By 2015, IDC projects that Windows Phone 7 will have an install base of 20.7% of smartphones, behind Android at 45.4%, while iOS will be in third place at 15.3% and RIM’s BlackBerry will be at just 13.7%. That’s more than three years away. Microsoft (and IDC) had better hope the Nokia partnership is a huge success.
Dell Thinks The iPad Will Fail In the Enterprise (The Loop)
Andy Lark, Dell’s global head of marketing for large enterprises and public organisations, recently made some bold comments about the iPad. While he gave credit to the iPad to the iPad for its sales figures, he said it would fail in the enterprise. Lark believes Dell’s approach in using tablet PCs and Microsoft Windows will be the enterprise winner. Hasn’t Microsoft been trying this strategy for a decade now without success? Kudos to Dell for believing they can change this.
Amazon Beats Apple And Google To The Online Music World (TechCrunch)
The rumours were true. Not only is Amazon entering the “music locker” space, they’re doing it before both Google and Apple. Cloud Drive is the name Amazon is giving to its media storage space on their servers. They give you 5 GB of storage for free and allow you to access the media from any computer. Cloud Player is, obviously, the name of the actual player. And it comes in two flavours: a player for the web and one for Android devices (Note the absence of an iOS player). Read more at Business Insider.
Why Did Apple (Two Years Ago Mind You) Buy Online Music Service Lala (CNN Money)
What happened to Lala? As Amazon rolls out its Cloud Service, Lala founder Bill Nguyen told Fortune’s Adam Lashinsky that the purchase was strictly for the people. The vast majority of Lala employees continue to work at Apple. But what are they building? Bill says to take a look at the Apple system. He believes it is completely open, allowing developers the ability to create streaming apps. I’m not buying it.