Apple Investor: Another Day, Another New High (Walmart In Rearview Mirror Now)

The Apple Investor is a daily report from TBI Research. Sign up here to receive it by email.

AAPL Blasts To Yet Another New High
For the seventh trading day in a row, AAPL  shares have hit an all-time high. Yesterday the shares closed at $225.50, reaching a market cap of $204.5 billion. At this level, the shares are trading at 19.4x estimated fiscal-year 2010 EPS and  17.7x Enterprise Value / Trailing Twelve Months Free Cash Flow (TTMFCF). Today’s trading session should be more of the same as iPad pre-orders go live. Other potential, upcoming catalysts include the iPad hitting stores in the US in early April as well as Australia and the UK later in the month; the March quarter earnings release (and analysts increasing estimates in the meantime); and the release of the next generation iPhone this summer.

Analyst Projects Apple Will Once Again Blow Away Guidance This Quarter
Apple could post blowout numbers for its fiscal second quarter ending March, according to Majestic Research analyst Tony Berkman. Apple’s guidance for the March quarter is revenue of $11 billion to $11.4 billion, with profits of $2.06 to $2.18 a share. The Street, which has grown wise to Apple’s consistent upside, is forecasting a better quarter – in the $11.7 billion range. Berkman thinks the company is trending way above even that at $12.2 billion. He bases his thesis on strong demand for the iPhone in the UK, Japan and China (China…really?) and better than expected demand for the iPod and the Mac businesses. In terms of the iPad, he is at the higher-end of The Street forecasting 6 million units in CY10.

iPad Pre-Orders Started This Morning, The Press Goes Wild!
Apple’s press relations department issued a one sentence statement yesterday, “Customers can pre-order the iPad online at at 5:30am Pacific time on Friday, March 12.” This simple statement triggered more than 100 headlines Thursday night and Friday morning. Everyone from The New York Times to the Wall Street Journal to Apple-dedicated websites were all clamoring about the availability. There are also reports out that suggest Apple Corporate customers are getting calls from their representatives putting them at the head of the line. They still have to wait for April 3, but they are in front of the queue today. How convenient and smart on Apple’s part to attempt to work the iPad into the enterprise. We will stay tuned today and through the weekend to see if demand will outpace the initial unit supply.

It’s About Time! Apple Developing Multi-Tasking Support For The iPhone
(Apple Insider)
Apple is working on a solution to one of the iPhone’s biggest failings; the lack of multi-tasking support for third-party applications. The 4.0 version of iPhone software, probably due sometime this summer, will allow users to run a few third-party applications at the same time. According to Jay Yarow at Business Insider, you’ll be able to do stuff like listen to streaming radio while you’re reading email, or use an app to stream your location back to a server, so you can map your bike ride. The downside is that this could reduce the iPhone’s already-short battery life, or hog your processor, making the app you’re trying to use run slower. The benefit to Apple is that it will have yet another feature that its rivals have been using as a competitive marketing advantage, especially Google and Palm. With this enhanced capability, it will be interesting to see if Apple can win back some of the market share Android-operated smartphones stole the past year.

Apple And Nokia Won’t Duke It Out In Court Until 2012!
Apple and Nokia are suing each other over mobile patents, but will not meet in court until mid-2012. The suits were filed in October (Nokia) and December (Apple’s counter suit) of last year. This puts Apple’s lawsuit against HTC (Google) into some perspective with regard to timing. While it could hurt HTC and Google a little in the short run and put the entire industry on hold, it’s going to be years before the companies actually meet in a courtroom. What will happen in the meantime? Probably not much other than the usual mud slinging. Oh and Apple’s lawyers are going to be busy for a long long time.

Choosing The Best iPad For You; A Simple Q&A For The First Generation iPad Buyer
(New York Times)
Even media giant The New York Times has hopped on the Apple-frenzy bandwagon. Nick Bilton has put together a question and answer blog about how to chose the right iPad. If you are planning on purchasing an iPad (and haven’t already waited in line or been on hold over the phone), there are a few things to consider asking before you plunk down your credit card. Ever since the various hardware options and pricing points were announced in January, questions have arisen regarding the best configuration to purchase. Everything from Wi-Fi versus 3G, business use, data plans, travel, storage space and everything else but the kitchen sink is covered. If you still aren’t convinced or are on the fence, perhaps waiting until Apple works out the kinks is the best option for you.

Mobile Commerce Growing But Mass-Market Industry A Ways Off
(TBI Research)
Rory Maher at TBI Research put out an interesting research piece on mobile commerce this morning arguing that while mobile commerce is growing rapidly, it is still years from being mass-market. Remember when this was an issue for eBay and Amazon back in the day; Internet users of the time not willing to trust their credit card or willing to wait for shipping? And we all know what happened there! But it did take a couple of years. Mobile commerce represents a significant opportunity as 90% of Americans own a cell-phone. That said, according to Nielsen, only 7% of them have conducted a transaction on their phone despite having the technology that makes it increasingly easy to buy goods from a phone. Apple of course, is poised to further this adoption process with the iPhone and iPad. In talking with various companies, Rory found that executives in the industry indicate that while mobile commerce experienced exponential growth off of a small base in 2009, it is still years from being a ubiquitous, mass-market industry. In his report, he finds that:
    * Revenue growth spiked beginning in mid-2009 for retailers with mobile offerings.
    * Smaller retailers are now helping drive industry growth in addition to the largest ones.
    * New as-yet-unlicensed spectrum could enable the industry to scale to ubiquity, but all the stakeholders need to support this and we’re likely years from that happening.

The Apple Investor is a daily report from TBI Research. Sign up here to receive it by email.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.

Tagged In

apple tbiresearch-us