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AAPL Heading South
Stocks are lower in early trading after yesterday’s surge on a huge stock offering from professional networking site LinkedIn as well as a rise in commodity prices. Shares of AAPL are heading lower as well. Upcoming catalysts include the WWDC starting June 6; iPad 2 sales updates; the next iPhone launch this fall; smartphone push into China and emerging markets; iTunes and other cloud initiatives; the continued evolution and adoption of Apple TV; and new platforms such as video, books / publishing and social (Ping). Shares of Apple trade at 11x Enterprise Value / Trailing Twelve Months Free Cash Flow(incl. long-term marketable securities).New iPhone Coming In September, Not This Summer (Barron’s)
Piper Jaffray analyst Gene Munster says two “concrete data points” point to Apple introducing its next iPhone in September, rather than the usual summer introduction. One iPhone manufacturing equipment supplier received orders for the equipment “several months later than usual.” And two, the company has usually had a software event in the spring, followed by a hardware announcement at its summer developer conference. There was no software event in the spring. He’s sticking with his estimate for 16 million iPhones to be sold this quarter, and 21 million in the September quarter.
Gamers Downloading A Ridiculous Amount Of Games On iOS Devices (Distimo)
Research and analytics firms Distimo and Newzoo, issued their first report together called The National Gamers Survey. It revealed that there are now appropriately 63 million iOS gamers who are downloading an average of 2.5 apps per day. That’s 157.5 million total apps daily. It comes as no surprise that games are considered the most popular genre of app among iOS users, now accounting for almost half of all paid and free titles in iTunes. Eat your heart out Nintendo. Read how iOS is generating more revenue on a smaller platform than Android at Business Insider.
Apple Has Half Of The Big Four Music Labels On Board For Cloud-Based Music Service (CNet)
Apple is reportedly poised to finish signing licensing deals with all of the Big Four music labels in the near future, setting the stage for the introduction of a cloud music service at WWDC in June. With EMI and Warner Music in the bag, it’s just a matter of time before Sony and Universal follow. If Apple can put together a great cloud-based music service, with the labels onboard and its iTunes leadership, it just might steamroll anyone. Including Google and Amazon who launched their services recently without the blessing of the labels. Read more at Business Insider.
Apple Could Bring LTE 4G Phone To China Mobile (Various via iDygest)
China Mobile and Apple are in discussions over bringing a TD-LTE 4G version of the iPhone to the world’s largest cellular provider. This could mean that the next generation iPhone might have 4G capabilities for other networks as well. China Mobile Chairman, Wang Jianzhou, says that talks are still continuing.
If Apple Traded At LinkedIn’s Valuation, It Would Be A $3 Trillion Company (The Wall Street Journal)
At LinkedIn’s current valuation of roughly $10 billion, LinkedIn is trading at roughly 41x its 2010 net revenue. If Apple were trading at the same multiple, it would have a market value of $2.7 trillion. And that figure is based on Apple’s revenue for the year ended Sept. 25. Given Apple’s rapid revenue growth, we could be looking at more than $3 trillion in market value, if Apple had the same crazy stock multiple as LinkedIn. The multiple will, of course, contract; the shorts in that stock are out for blood.