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Photo: Daniel Goodman / Business Insider
AAPL Down As Markets Sink
Stocks headed lower Monday as European private sector activity showed a decline and a lower growth target for China spooked the markets. Shares of AAPL are down on an analyst report on the patent wars between Apple and Samsung. Investors continue to be focused on iPhone adoption; update to the iPad coming March 7; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV (see below); and platforms such as Siri, iAd, iBooks and Ping. Shares of Apple trade at 10.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).Nearly One-Third Of Mobile Web Users Plan To Purchase The Next iPad (inMobi)
About 30% of mobile web users plan to purchase the much-anticipated Apple iPad 3 upon its release, according mobile ad network inMobi. A notable number from that sub-section indicates that 54% of those who plan to buy have never owned a tablet. Anne Frisbie, Vice President and Managing Director of North America, said that “Interestingly, 65% of those who intend to buy an iPad 3 would consider buying an iPad or iPad 2 at a reduced price instead, indicating that whether or not consumers purchase an iPad 3 versus an older model, the excitement around the iPad 3 release will likely increase iPad penetration in the tablet market.”
The iPad 3 (HD) Will Be A ‘Significant Upgrade’ Says Analyst (Bloomberg)
Shaw Wu from Stern Agee did a Q&A with Bloomberg to talk about what gets us to his $620 price-target. That figure assumes 12x next year’s earnings, taking into account $100/share net cash. What are they doing with extra cash? They are more likely to be a bit more constructive with the cash. The likelihood that they will issue a dividend this year or next year is high. Is the iPad 3 going to be that different? Yes, it’s going to be a significant upgrade; better screen, faster processor, and the wireless speed will approach that of PC speeds (4G / LTE).
Apple Expected To Cross The 100 Million iPad Mark This Year (USA Today)
With Apple expected to introduce a new iPad this week, analysts are forecasting that consumers will respond by opening up their wallets in record number, at least according to history. It is estimated that up to 60 million iPads will be sold this year, with some 55 million sold to date. That brings the total sold since the tablet was introduced in April 2010 to more than 100 million iPads to be sold by the end of this year. “People have been waiting to get the new iPad,” says Shaw Wu, an analyst with Sterne, Agee. “There’s real pent-up demand.”
Apple Reaches The 25 Billion Download Mark, Growing At 15 Billion Per Year (MacRumors)
Apple’s App Store reached 25 billion downloads over the weekend. The App Store took a little under two and half years to reach 10 billion downloads, and less than six additional months to reach 15 billion downloads last July. That’s 10 billion downloads over a period of just eight months, putting Apple’s pace at 1.4 billion downloads per month or 15 billion downloads per year and likely continuing to accelerate.
Apple Making More Inroads Into Government, Vancouver Goes iPad (Softpedia)
Vancouver now uses Apple iPads for City Council gatherings and manager meetings in lieu of stacks of multi-page handouts and agendas, not only saving the city a lot of cash, but also improving operations. Vancouver City Council member Jack Burkman, a former high tech executive, is the brains behind the initiative. He reportedly pushed the City to move away from printing large stacks of paper for Vancouver City Council meetings each week. Council members now receive their paperless packets via an FTP site which they access from the tablet computers.
Apple Continues To Defend Its Employment Practices (Apple, Business Insider)
Everyone was ready to move on from the Foxconn ordeal. But Apple is still defending itself. The company posted a series of infographics ballyhooing the number of jobs it has created in the United States; over a half a million. According to Henry Blodget at Business Insider, the details reveal that that number is pretty much just a spin job. Apple employs about 47,000 people in the United States. 27,000 of these people work in retail stores, where most of them make about $12 an hour. Another ~8,000 work in Apple Care call centres. That leaves about 12,000 corporate executives. The rest of the half-million jobs Apple is referring to are in the broader ecosystem.
Air Force Has Award To Buy Up To 18 Thousand iPads (Bloomberg)
The U.S. Air Force awarded a $9.36 million contract to buy as many as 18,000 iPad 2s in one of the military’s largest orders of computer tablets. Taking a cue from commercial airlines, the service will use the tablets to replace the bags of paper manuals and navigation charts carried by pilots and navigators. Interestingly, the command’s decision was based in part on the lowest-priced offer.
Apple Tops Goldman Sachs S&P Growth Chart For 2012, Drops Precipitously In 2013
Goldman Sachs issued a useful chart from the latest monthly equity chartbook. It ranks the fastest growing companies in the S&P 500 (excluding financials and utilities) based on estimated 2012 revenue growth for this year. Apple is not surprisingly number one on that list with 35% estimated revenue growth for 2012. Now what’s interesting is how this list is expected to change in 2013. Apple falls to number 6 on the list, with growth slowing precipitously to 14%.