The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
Photo: Dennis Wong on flickr
AAPL Off With Markets
The market is off on continued global economy fears as eurozone industrial production fell and markets in China sold off. Shares of AAPL are off in early trading as investors worry about estimates for the quarter. Upcoming events include Tim Cook’s keynote at the D10 Conference on May 29 and Apple’s developer conference (WWDC) is slated to start June 11. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation iPhone 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).Apple rumoured To Buy German TV Manufacturer (Apple Insider)
Apple is said to be negotiating to acquire Loewe AG, a manufacturer and distributor of televisions, audio components and integrated entertainment systems (check out all the gadgets), with a final decision expected to be announced by the end of this week. According to sources, Loewe “has been advised by its financial advisor to accept the offer and a final decision is scheduled to be announced internally before 18 May 2012.” It’s not immediately clear what Apple would gain from this acquisition. They aren’t one to buy into hardware, although this TV is slick! Anyone know Loewe’s product line well enough to have ideas?
Google Needs iOS More Than It Needs Android (SlashGear)
Google has a problem, and it’s all about commitment and addiction. The update release of Google+ for iPhone has Android lovers up in arms. Google should prioritise Android users. After all, they’re the ones who support the search giant by buying an Android device in the first place. The blunt truth is that Google needs to convince Apple users to use Google + more than it does those of Android.
Intel Making Chips Apple “Can’t Ignore” (Forbes)
Intel outlined its plan to catch up in the smartphone processor business at its annual investor day last week. “Our job is to ensure our silicon is so compelling, in terms off running the Mac better or being a better iPad device, that as they make those decisions they can’t ignore us,” said Intel CEP Paul Otellini. Intel’s secret weapon: a massive corps of software engineers. The company helped Apple shift from PowerPC processors to Intel’s processors for the Mac. I’m sure Intel would be happy to help Apple make a similar shift in its smartphone and tablet businesses. If the price and performance is right, they could do it.
Apple Second On Forbes Fastest-Growing Tech Companies List (Forbes)
Forbes put together its list of America’s 25 Fastest-Growing Tech Companies. They combed more than 5,000 publicly traded technology companies, with sales growth of at least 10% for the past three fiscal years and over the latest 12 months. Companies also had to have three-to-five-year estimated earnings-per-share growth rates greater than 10%. Apple came in second, an astonishing feat for a company of its size. Its sales growth over the last three years has averaged 43%, and the company actually appears to be accelerating.
Analysts Are Starting To Panic About Apple’s Quarter (Business Insider)
Didn’t this happen last quarter too? On the heels of Credit Suisse’s estimate reduction, analysts are starting to panic. Apple might be due for a big estimate cut. Katy Huberty at Morgan Stanley didn’t lower her expectations, but she did address the issue and her estimates are already well below consensus. Apple has only guided this far below expectations once since June 2009. And that was for the September quarter of last year when Apple correctly predicted consumers would buy fewer iPhones as they waited for the next release.
Baidu Set To Launch New Smartphone On Baidu Cloud (Reuters)
Baidu is set to launch a new smartphone partnership this week, that will see the smartphone use an upgraded version of its mobile operating system. It will be similar to Baidu’s partnership with Dell in which the two launched a smartphone running on Baidu’s Yi platform. The new smartphones will run an upgraded version of Baidu Yi called Baidu Cloud. “We have a few partnerships coming up and will announce it in a week,” according to Wang Jing, Baidu’s vice president of engineering and head of mobile. That will put Baidu head to head with iOS and Android.
Business Insider Emails & Alerts
Site highlights each day to your inbox.