Apple Investor: Google Hops Onto Apple's Network; Nexus One Now Available With AT&T

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

AAPL Shares Rebound Modestly With The Market
Apple rebounded yesterday after Monday’s sell off. The stock closed at $224.45 or 16.9x estimated fiscal-year 2010 EPS and 17.5x Enterprise Value / Trailing Twelve Months Free Cash Flow (TTMFCF). Upcoming catalysts include speculation and analysis of iPad sales and trends; the March quarter earnings release (likely around the third week in April); and the release of the next generation iPhone this summer.

Apple’s Mac Sales Positioned To Beat Street Expectations…Again
(Business Insider)
Silicon Alley Insider’s “Chart of the Day” illustrates Apple’s Mac unit sales growth since June 2003. While Apple’s Mac business isn’t growing as fast as it did last Christmas (despite easy comps), it’s still performing ahead of expectations. In a note Monday, Piper Jaffray analyst Gene Munster said he expected Apple to report Mac year-over-year unit sales growth of 26% to 31% for the March quarter, above the Street’s expected 22% year-over-year growth (click here to see quarterly unit sales mix). It will be interesting to see how the iPad impacts the Mac business starting in the June quarter. It may attract more people into Apple Stores, which could drive spontaneous purchases of MacBooks. However, it could also cannibalise low-end MacBook sales. Apple’s bet is that it won’t, but will instead become a third category of device that competes mostly with PC netbooks and e-book readers.

Google Hops Onto Apple’s Network; Nexus One Now Available With AT&T
(Yahoo! News)
The Apple-Google battle rages on! Yesterday, Google rolled out an AT&T-compatible Nexus One. That move puts the search giant’s Android smartphone on the same network as the iPhone and represents another step in the company’s attempt to compete with Apple for mobile sales. To take advantage of this offer, AT&T users will have to fork over $529 to get their hands on a SIM-unlocked Google Nexus One. Let’s think about this for a second; $529 bucks is five times as much as it would cost to buy an iPhone 3G and more than twice as much as an iPhone 3G S. Considering Google has only sold 135,000 Nexus Ones, it’s not likely that many iPhone users will be switching to the Android smartphone as they wait for the iPhone upgrade this summer.

Fickle Blackberry Users Ready To Jump Ship For iPhone, And Maybe Android
(Crowd Science)
According to a mobile phone study by Crowd Science, it seems RIM (Blackberry) might be losing its customer attraction. The study, which asked 1,140 mobile phone owners what phone consumers prefer as their next smartphone purchase, found that 40% of Blackberry users said they’d leave the RIM platform for an iPhone. That’s great news for Apple who will launch the next version of the iPhone this summer, but do we have another Palm on our hands with RIM? Probably not. Android is also making gains with greater awareness and 32% of BlackBerry users would also consider Android as their next platform. Unlike RIM’s fickle user base, iPhone and Android users are very loyal, with over 90% of users committed to the platform.

Earth To Steve Jobs: Flash Isn’t Going Anywhere, You’re Just Making It More Difficult For Your Partners
(The Motley Fool)
The Apple vs. Adobe controversy over Flash rolls on. Yesterday, dozens of articles appeared around the announcements from NPR and the WSJ that both companies were developing mobile Apple-product friendly websites; meaning both are building an HTML5 (instead of Flash) website in addition to their current sites. That’s one way of taking the bull by the horns and solving the issue yourself without forcing Apple or Adobe to address the white elephant in the room; bypass them all together. Even Microsoft is hopping on board as Internet Explorer 9 is rumoured to now support HTML5, something that it has not in the past. Yet another indication that Bing may replace Google as the bundled search engine on the new iPhone. The Motley Fool’s Eric Jhonsa doesn’t think the Flash multimedia platform is going anywhere soon. Whether you hate Flash or you love it, there are some realities that will keep Flash developers around for a while.

  • HTML5 is a work in progress
  • Licensing issues remain thorny
  • Old browsers die hard (21% of web users still run IE 2001!)

iPad Changing Way Magazines Count Circulation, Hasn’t Even Launched
(Audit Bureau Of Circulations)
Once again, Apple is changing the rules of the distribution game. The anticipated launch of the iPad has forced publishers to reclassify how magazines quantify their readership and distribution (important in calculating rates charged to advertisers). The Audit Bureau of Circulations has officially altered its definition of a digital magazine to include the emerging class of tablet-style devices, such as the iPad. Meaning, magazines can design their article spreads to be accessed by applications (approved by the ABC) on the iPad and count paid digital subscriptions to those apps as part of their overall circulation. Magazine circulation was down 9% in 2009 and though comps will be especially easy this year, tablet PCs could also lend a hand to the ailing industry.

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