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AAPL Off In A Down Market
The market is heading lower on election results in Greece and France. Shares of AAPL, the second best stock in America, are mixed. The recent slide has erased all post-earnings gains. 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 8.9x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).China Surpasses The U.S. In Smartphone Subscribers (AppleInsider)
Further demonstrating the importance of China to Apple’s business, the country has now surpassed the U.S. in terms of smartphone subscribers, thanks to the iPhone 4S, making it the largest smartphone market in the world according to Canalys. In the first quarter of 2012, China represented 22% of global smartphone shipments, while the U.S. accounted for 16%. The iPhone accounted for 19% of smartphones shipped to China in the first quarter, making the company second only to Samsung at 22%.
The iPad Set To Be Only Half The Tablet Market By 2017 … (NPD)
Despite surging share last quarter, according to NDP, the tablet market is set to dominate the tech industry over the next five years. As the overall market grows however, Apple’s iPad is predicted to lose steam and will drop to only 50% per cent of the 424.9 million units by 2017. It makes sense that Apple’s iPad will lose some of its enormous lead over other devices as the rest of the tech industry finds a way to contend with the iPad (like Amazon).
… But For Now It’s Serving Up 95% Of Tablet Web Traffic (Chitika)
Based off of impressions across the Chitika network, the iPad accounts for 94.6% of all tablet based traffic. To put this number into perspective, the next closest competitor, the Samsung Galaxy tablet, boasts a lack luster market share of 1.2%. Coming in last, in respect to traffic share, was the Barnes & Noble Nook with a meager 0.5% (you can only go up from there Microsoft). In defence of the Nook, it is used primarily as an e-reader, with the capabilities of a tablet.
More Than Half Of Consumers Would Consider Buying An iPad Mini (CNet)
rumours of an iPad Mini have been around for a while. But how many would actually buy one? According to a study from PriceGrabber, a full 52% said yes. And only 22% of those surveyed actually own a tablet now and among those, 68% have an iPad while 10% own Amazon’s Kindle Fire. So why would consumers want a smaller iPad? A leading 64% pointed to a lower price, while 54% said the smaller size would make the tablet more portable. A quarter of potential buyers said they’d pick it up as a gift.
AT&T Finally Discussing How iMessage Affects Its Business (The New York Times)
Randall Stephenson, CEO of AT&T, wishes the company never offered unlimited data plans for the iPhone and worries about the impact free texting services like Apple’s iMessage will have on the telecom’s bottom line. Stephenson said, “If you’re using iMessage, you’re not using one of our messaging services, right? That’s disruptive to our messaging revenue stream.” He also sites Skype as another threat. Stephenson should also be worried that Apple will launch a wireless network and cut AT&T out completely.
Anecdotally, Verizon Is Talking Customers Out Of The iPhone In favour Of Android (CNN)
A study of salespeople trends at Verizon stores has uncovered that the company may be training its employees to preach the benefits of 4G LTE on Android over the iPhone. Some sales personnel are even being quoted as calling the iPhone “outdated.” CNN found a number of users who had stories of going into a Verizon store wanting to buy an iPhone but being convinced to buy something like a Droid Razr instead. The carriers pay much heftier up-front subsidies for the iPhone than for other devices. Verizon is also trying to ease congestion on its 3G network by promoting its more capacious and more efficient 4G service.
Warren Buffett Puts A Neutral Rating On Apple Stock (Reuters)
Warren Buffett said he would not buy shares of Apple or Google but would not sell them short. “I would not be at all surprised to see them be worth a lot more money 10 years from now but I would not buy either one of them,” Buffett said at Berkshire’s annual shareholder meeting in Omaha. “I sure as hell wouldn’t short them either.” So, let me get this straight. You wouldn’t buy them yet you think they are going to be worth a lot of money in 10 years? Got it.
Listen Up Guys, mums Want An iPad (Techbargains)
According to a poll from bargain-hunting site Techbargains, 91% of mums would rather get an iPad than flowers (9%) for Mother’s Day. Well, duh. Who wouldn’t? Of mums who want tech gadgets, 51% of the mums said they’d like to receive a tablet. And of those, 64% want an iPad.