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AAPL Sideways As Market Dives
As Europe implodes, the U.S. markets are following suit. Shares of AAPL seesawing along the flatline. Upcoming events include Tim Cook’s keynote next week at the D10 Conference on May 29 and Apple’s developer conference (WWDC) slated to start June 11 (where the company is expected to make a slew of announcements). 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 8.7x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities), ridiculously low based on historical trends.
Apple Not Likely Affected By Qualcomm Chip Shortage (Apple Insider)
A new report from Gene Munster at Piper Jaffray claims 28nm chip shortages at Qualcomm are unlikely to keep Apple from releasing a next-generation iPhone with a “completely redesigned body style” in October. Qualcomm is widely expected to provide the baseband chip for the next-generation iPhone. He estimates an 80% chance that iPhone sales will meet its forecast of 49 million units in the December 2012 quarter. Even if Apple was affected by shortages, Munster expressed belief that iPhone sales would simply be shifted into the March 2013 quarter and beyond.
The iPhone 3GS Might Become Apple’s Pre-Paid Option (Forbes)
With the iPhone 4S jumping off the shelves, and buzz about the iPhone 5 continuing to mount, no one spends much time talking or thinking about the lowly 3GS, which you can get for free with a two-year service contract. But the phone, now almost 3 years old, might have more life left than most people would suspect. Jefferies & Co. analyst Peter Misek asserts that Apple has signed an agreement “with a major global distributor” which will look for ways to penetrate the pre-paid and developing markets. He thinks the phone will be repriced (at the wholesale level) from $375 down to the $200 to $250 range.
Apple Shipped The Most Mobile PCs In The First Quarter (VentureBeat)
Apple shipped 17.2 million mobile PCs in the first quarter of 2012, leading the world in units shipped by 22.5%, according to a study by NPD DisplaySearch. And with new releases like the latest iPad, interest will continue to grow. Compared to the same quarter last year, Apple shipped 118% more mobile PCs, 80% of which were iPads. That accounts for 162% growth year over year. The iPad accounted for so much mobile PC growth, that Apple didn’t even show up on the list of companies who shipped the most notebook units. HP won that game. But the amount of iPads shipped was enough to raise Apple up over its competitors in the overall market. For more, check out the new BI Intelligence report, Apple Now Dominates Portable Computer Sales Because Of The iPad.
The rumoured Apple TV Will revolutionise Cable And Advertising (Seeking Alpha)
Apple TV will completely revolutionise the cable TV and TV advertising markets as we know it. How? Through TV apps. These will disrupt the cable industry just as much as Apple disrupted the music industry. Currently, cable subscribers have to subscribe to a set of packages, some of which are mandated by federal and local law. But why? Why can’t cable users subscribe to channels on an individual basis, or even to purchase individual shows as desired? With TV apps, they can. The new Apple TV will allow content producers to create apps which will be used to distribute content.
Here’s A Great Infographic On Apple’s… Presence (Sortable via Mashable)
Keeping up with Apple’s growth is like sneezing with your eyes open; it’s nearly impossible. So here’s an awesome infographic just to put that in context. It shares the latest Apple profits, revenues and cash-in-hand, along with the company’s reach; 30% of smartphone users in the U.S. have an iPhone. Along with an impressive iPad market share (62%) and an astounding number of employees (over 30,000), don’t forget one of Apple’s most valuable properties; the App Store. You’ll currently find 600,000 apps and counting in the store, and 895 new apps are added every day.
The 9 Most Interesting Facts About Apple Stock (Business Insider)
Morgan Stanley’s Adam Parker has an interesting report on The Elephant In The Room. Otherwise know as Apple. It’s not so much about the company, but rather about the stock itself and how investors should deal with such a megacap in their portfolios. The stock brings its headaches, since typically a prudent investor would trim their holdings as it got larger and larger. The problem is, selling Apple at any price (up until recently) has been a huge blunder. The report advises against trying to create a basket of related stocks (like suppliers) as they have failed to perform as well as Apple, and the baskets require constant rebalancing.
How Does Apple Make Ping Not Suck? (Adam Haworth)
Ping is terrible. Everyone knows it. But there are a few ways that it can be rescued according to blogger Adam Haworth: Ping needs to be taken out of iTunes.app and moved into its own:
- It makes it seem like a proper social network, not just an afterthought
- It makes the service easier to use with ultimately a better experience
- A separate app allows this better integration to come into its own
- It allows Apple to create a brand for Ping
If Apple isn’t going to change the concept in any way, it might as well just quit it now and kill the service off.
Investor Recommends Others To Short Apple Stock (ValueWalk)
Jeffrey Gundlach, CEO and CIO at Double Line Capital, is recommending investors short Apple. The recommendation has added to the downward trend the company has been seeing in it’s stock price since just after its announcement of earnings for the company’s second quarter. Gundlach has relied on precedent in Google’s stock price in 2007, to predict a drop in Apple’s price. He believes the company is valued far too high and lays the blame for that at analysts guessing higher and higher price target for the company in recent months. “The genius isn’t there anymore” Gundlach says. Learn more about Gundlach, the world’s greatest bond investor.
Over 90% Polled Believe Apple Is A Better Investment Than Facebook (Scoople)
When asked the question, is Apple stock right now a better investment than the newly traded Facebook stock, an overwhelming 92% said yes.
Tim Cook Is The Highest Paid CEO (The Wall Street Journal)
Steve Jobs left big shoes. Apple is betting $378 million that Tim Cook is the right guy to fill them. That is the value of the annual pay package Mr. Cook was awarded last August, when he was named Apple chief executive, about two months before Mr. Jobs died. Nearly all of the compensation stems from a grant of one million shares of restricted stock, valued at $376.2 million, based on Apple’s stock price at the time. Mr. Cook’s 2011 compensation is the highest recorded in The Wall Street Journal’s annual CEO pay survey since at least 2006, when the Securities and Exchange Commission changed its rules for reporting executive pay.
Apple Sees Its Brand Value Increase 19% From Last Year, According To Study (BrandZ via The Next Web)
Technology companies dominate the world’s most valuable brands, according BrandZ’s Top 100 report, which saw iPhone and iPad maker Apple hold off IBM and Google to top the pile again. Apple saw its brand value increase by 19% on last year’s study, which it also lead, to reach $183 billion. That figure puts it ahead of IBM ($116 million), Google ($108 million), McDonald’s ($95 million) and Microsoft ($77 million). The brand value figure calculation ranks the firms by combining the financial valuation of each company with the appeal and loyalty that they inspire in consumers.