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AAPL Up With Markets
Americans slowed spending in September to the weakest pace in 3 months as incomes fell by the largest amount in 14 months. Shares of AAPL aren’t phased — trading up close to $4. Upcoming catalysts include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion; new content revenue streams such as video, books and social (Ping); moving iTunes into the cloud; and the uptake of refreshed Apple TV. AAPL trades at 14x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities). New MacBook Air To Ship In Highest Volume Ever (AppleInsider)
Apple’s new MacBook Air is supposed to ship in highest volume ever for the thin-and-light notebook, according to analyst Mingchi Kuo from Concord Securities. Some 700,000 Macs – out of the 4.1 million estimated to ship in the fall – would be ultraportables. This means 17% of the total number. Furthermore, 420,000 (60%) of them would be represented by the 11-inch model, and the analyst is confident that buyers are inclined to trade speed for size and price. Have any questions about the MacBook Air? Ask Business Insider Dan Frommer.
Asymco: Apple Pulling In 50% Of The Worldwide Cell Phone Profits (Asymco)
Market Intelligence firm Asymco helps investors visualise the effect of Apple’s entry on the mobile phone market. Bottom line: Apple is selling iPhones as fast as it can make them, and is raking in huge profits in the process, while everyone else is playing catch up, says Philip Elmer-DeWitt at Fortune. Apple’s worldwide cell phone market share in terms of unit sales is 4% while Apple’s share of the profits (earnings before interest and taxes) is 50%.
Canalys: Android Commands 44% Market Share Versus Apple’s 26% (Fortune)
Watch out Apple. The combined sales of Android handsets give Google’s OS a commanding 44% smartphone market share in the third quarter, according to research firm Canalys. Apple did take the lead from Research in Motion‘s BlackBerry with shipments of 5.5 million iPhones in the U.S. for a 26% market share. However, Google’s (GOOG) Android is winning the OS wars, shipping 9.1 million units. Read more from Business Insider here.
NPD: It’s True, Android Is Clobbering The iPhone (All Things Digital)
Android is extending its lead as America’s most popular mobile operating system. NPD consumer research group says that Google’s software was installed on 44% of mobile handsets sold in the third quarter, up 11 percentage points since last quarter. Android’s gain seems to be primarily fuelled by BlackBerry’s loss: Research in Motion lost 6 points in the last quarter, falling to 22%, while Apple’s iOS moved up one point, to 23%.
In Terms Of Reward For Earnings, Apple Trading In Line With S&P (Seeking Alpha)
If you had invested $100 the S&P 500 in September 2005, you would have $103 now. If you invested $100 in Apple in September 2005, you would have $529 now. However, in terms of reward for earnings, Apple doesn’t seem so appealing. Although Apple received a premium valuation to the S&P prior to October 2008, it has traded at a discount or in-line with the S&P since then. Click to see accompanying charts.
Again, The Verizon iPhone Is Coming (But So Is Christmas) (Fortune)
The most talked-about mobile phone in America is one that doesn’t officially exist: the Verizon iPhone. Analysts estimate that Apple could sell 8 million to 9 million next year, compared with an estimated 22 million iPhones sold-to-date in the U.S. The soon-to-be-unveiled Verizon iPhone is the answer to many consumers’ prayers. But a deal with Apple will test the company that Ivan Seidenberg (CEO) has spent his career building.