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Illustration: Ellis Hamburger
AAPL Fights Back As Market Rises
Markets are adding to the January rally, the best since 1997, despite the slight miss from the ADP jobs report. Shares of AAPL continue to rise, fighting off a dip in early trading. Investors continue to be focused on iPhone adoption; update to the iPad; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as Siri, iAd, iBooks and social (Ping). Shares of Apple trade at 8.1x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).More Evidence That An Apple TV Is On The Way (AppleInsider)
Piper Jaffray’s Gene Munster recently spoke to a “major TV component supplier” about Apple’s rumoured plans to release a connected HDTV. Sources at the supplier told him that Apple had contacted “regarding various capabilities of their television display components.” Munster views the news as “continued evidence that Apple is exploring production of a television.” Do you think Apple will release a TV in 2012?
Emerging Markets Expected To Increase Share Of Tablets (TechCrunch)
Research group NPD believes that the emerging market will grow from a 36% of worldwide tablet shipments in 2011 to 46% in 2017. According to senior analyst Richard Shim, “The emerging market opportunity for tablets has been flying under the radar mainly because the device brands aren’t household names and there are concerns regarding the sustainability of the market.” Apple is expected to strongly contribute to tablet sales, but low-end pricing will be crucial to opening growth. Just wait until it drops the iPad price.
Apple Becomes The Largest PC Maker If You Include The iPad (Canalys)
With the major firms now having reported their sales numbers for the quarter, research firm Canalys pieced together PC numbers to confirm that Apple has indeed taken the lead on the strength of the iPad. “Apple shipped over 15 million iPads and five million Macs, representing 17% of the total 120 million client PCs shipped globally,” in the fourth quarter. Including iPads, the total market grew 16% year-over-year. Excluding, the market declined 0.4%. Tablets accounted for 22% of PC sales during the quarter.
The iPhone Represented A Quarter Of All Smartphone Sales Last Quarter (VentureBeat)
While the success of the iPhone 4S was a big deal for Apple last quarter, it was the free (with contract) iPhone 3GS that helped Apple truly dominate the smartphone market during the holiday quarter, according to Juniper Research. And the 37 million iPhones Apple shipped accounted for almost a quarter of the 149 million smartphones shipped globally.
Mobile Phone Manufacturers Delaying New Phone Launches To Avoid iPhone 4S (Digitimes)
With the iPhone 4S launched globally in the fourth quarter of 2011 and expected to be selling well in the first quarter of 2012, other international vendors including Samsung, HTC, Nokia and LG are expected to launch their new smartphone models in the second quarter to avoid competing as directly with the iPhone 4S, according to Taiwan-based smartphone supply chain makers. Many will unveil new models for launch during the second quarter.
Apple Finally Catches Up With iPhone 4S Demand (Electronista)
Apple has finally managed to catch up with the demand. The iPhone 4S is now listed as “In Stock” in many Apple online stores. “In Stock” means that Apple is in a position to ship the iPhone 4S almost immediately. The shipping estimates had dropped to 3 to 5 days two weeks back. The improved supply arrives more than three months after the 4S shipped. Apple had quickly booked off pre-orders and spent much of the holiday quoting a one- to two-week delay.
Apple And Foxconn Working To Bring Manufacturing Plants To Brazil (Various via Scoople)
Brazil’s Secretary of Planning and Development of the State of Sao Paulo, Julio Semeghini, revealed that Apple and Foxconn are continuing to work on bringing that $12.5 billion iPad plant in Brazil online. Currently there have been no iPads “Made in Brazil” seen yet, unlike iPhones. Let’s hope they don’t run into the same labour conditions and wages in China, as well as the unusual number of suicides among Chinese factory workers. In a survey, 82% of respondents said that Apple should bring those jobs to the U.S.
Apple Names Its New Head Of Retail (Various via Scoople)
Apple announced John Browett as senior vice president of retail. Browett is the chief executive officer of the largest U.K. consumer-electronics retailer, Dixons (not the most upscale of places). This ends the more than seven month search for an executive to oversee international expansion. Browett has considerable experience in the field, also holding executive positions at Tesco including CEO. Do you think Apple has chosen the right guy for the job despite his low-end background?
Apple Stock Hitting New Highs (Mercury News)
Apple stock, still feeling the effects of one of the most successful quarters in history, hit record highs yesterday. The tech giant increased its lead over Exxon for the title of most valuable company in the U.S. Shares hit a new intraday high of $458.24 and set a record for highest closing price for a second consecutive day.