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AAPL Sideways In A Down Market
Market is off as the jobs report misses expectations by a mile. Shares of AAPL are struggling and trading sideways, mostly in the negative, as the rest of tech is deeper in the red. 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 9.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Apple Is ‘Just Getting Started In China’ (Apple Insider)
Chris Whitmore at Deutsche Bank believes that Apple has huge potential in China and is “just getting started.” He expects China Telecom and China Unicom to approach 300 million 3G subscribers by the end of 2013 and Apple will benefit from that growth. If Apple adds China Mobile as a partner, the addressable market would increase by about 125 million 3G subscribers. China currently accounts for about 15% of the iPhone market, but he believes that iPhone momentum will slow slightly in China over the coming months as the life cycle of the latest-generation iPhone 4S continues and the world awaits the iPhone 5.
Apple Set To Crush The Carries With Wireless Service (BGR)
Apple’s next huge move is taking on the carriers by becoming a direct mobile service provider. Veteran wireless industry strategist Whitey Bluestein, says Apple will soon begin to offer wireless service directly to iPhone and iPad users. Apple has the distribution channels, digital content portfolio and customer base to make the move, Bluestein says, and it also has more than 250 million credit cards on file for iTunes users who could be billed directly for wireless service. If that’s the case, there goes Apple’s margin.
Apple’s Worldwide Mobile Phone Share Doubles In The First Quarter (IDC)
Apple was responsible for 8.8% of all cell phone shipments worldwide in the first quarter of 2012, up from 4.6% of the market during the same quarter last year, according to IDC. iPhone sales helped catapult it past LG to become the third largest seller of mobile phones worldwide, behind Samsung and Nokia, respectively. It’s obvious, but Apple only makes the iPhone; not crappy feature phones it can sell all over the world. It still has a lot of room for growth.
Android Still Leads U.S. Market Share Of Mobile OS Platform (comScore)
According to comScore, for the first quarter Samsung ranked as the top U.S. mobile OEM with 26% of U.S. mobile subscribers (despite conflicting reports), followed by LG with 19.3%, Apple with 14% (up 1.6-percentage-points), followed by Motorola with 12.8% and HTC with 6%. In terms of operating system, Android ranked as the top smartphone platform with 51% market share (up 3.7-percentage-points) followed by Apple’s 30.7% share (up 1.1-percentage-points).
Apple Grabs Yahoo Exec To Beef Up iAd (All Things Digital)
Jessica Jensen, the Yahoo executive in charge of its flagship Shine women’s site, has left and gone to Apple. She will now be working with former Yahoo and Adobe advertising executive Todd Teresi, who was recently tapped to head the mobile iAd division. At Yahoo, Jensen was the point person on its critical women’s initiatives, including Shine, which is among the top such sites in the U.S., so her departure is a blow to new CEO Scott Thompson’s efforts to push forward its media businesses.
Europe Lags In Tablet Adoption Compared To The Rest Of The World (Canalys)
According to Canalys, global tablet shipments tripled year-over-year in the first quarter of 2012, with Asian Pacific countries being the second largest region by shipment volume behind the U.S. Vendors shipped 20.3 million pads, representing 19% of all client PC shipments in the quarter. Europe, Middle East and African (EMEA) regions saw the slowest growth year-over-year growth which is attributable to a struggling economy, decreasing job creation and massive government debt.
iTunes Match Comes To Six More Countries (Apple Insider)
Apple’s iTunes Match subscription service expanded to a number of new countries this week, including Italy, Greece, Portugal, Austria and Slovenia. The previous expansion of iTunes Match took place in January, when availability arrived in 19 countries across Latin America and Europe. Another expansion occurred in December, when iTunes Match launched in 17 new countries. Apple first launched iTunes Match last November. It allows users to access music they own in the cloud for an annual fee, even if it was not purchased through iTunes.
Apple Is A Growth Stock To Catch Before It’s Expensive (Seeking Alpha)
It is hard to believe that the most valuable company in the world is able to be included on this list. Apple is a monster growth company (one of the greatest in history), currently trading at a forward P/E of 11.5 which means it’s a screaming buy. 2012 earnings could turn out to be closer to $50 per share than the $46 that is forecast. Don’t let the bears scare you out of buying what could be one of the greatest growth stories of our time. No matter what analysts say, this stock is still way too cheap.
Apple Co-Founder Loves His Windows Phone (aNewDomain)
Steve Wozniak is known for playing around with all kinds of mobile tech, even if it competes with iOS devices. He recently bought Nokia’s new Lumia 900 Windows Phone, and shared some of his thoughts on Microsoft’s Mobile platform in a podcast interview. Overall, Wozniak says he prefers the look and feel of Windows Phone apps over Android and iPhone apps. He also likes Windows Phone better overall than Android. That said, as one would expect, he still uses his iPhone 4S as his primary phone.
Should Apple Be Included In The Dow Jones Industrial Average? (Barron’s)
The Dow Jones Industrial Average is overdue for a makeover. Since the last adjustment in 2009, Apple has emerged as the world’s most valuable company. However, the Dow weights its 30 components based on the absolute price of their shares. So the 9% jump in the stock after Apple reported earnings, would have lifted the DJIA by nearly 300 points. One solution would be to adjust the way the Dow is calculated, scrap the Dow’s price weighting entirely and move to a market-cap system or Apple probably would have to split its shares five-for-one or 10-for-one. And that’s not likely to happen.
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