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AAPL Up As Market Struggles
The market doesn’t know what to do this morning as inflation seems to be tame but Ireland could still be in trouble. Shares of AAPL were mixed in early trading, but are climbing up midday. Upcoming catalysts for Apple 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).iPad Making Apple Popular In Education Market Again (CultOfMac)
Apple – in its early years – enjoyed 50% of the educational market. However, lower PC prices led by netbooks crumbled the company’s classroom reach to just about 20%. While the iPad is credited with many advances, it is making the $500 tablet competitive with PCs in the secondary and higher education markets. In the all-important back-to-school period, Apple was favoured by students even during a season when PC makers suffered a 10% slump.
Apple Ponied Up For Beatles Exclusivity Through 2011 (9To5Mac)
Apple has secured an online exclusive on music from The Beatles well into 2011, beating out Google and Amazon. Terms of the deal between Apple and EMI were supposedly worked out in a matter of hours. Apple is understood to have paid a “substantial” advance for the catalogue and the exclusive right to sell it digitally until sometime next year. While iTunes isn’t a huge money market for Apple, The Beatles catalogue could drive sales of two of its newest products – the iPad and Apple TV.
RIM Believes Steve Jobs Bends The Truth (9To5Mac)
At Web 2.0, RIM CEO Jim Balsillie took jabs at Apple saying “you don’t need an app for the Web.” Apps are a passing fad. Steve Jobs said at one point the future for app development on the iPhone rested with the Web. He faced a hail of criticism, and then launched the App Store. In response to Job’s claim that he doesn’t see RIM catching up to the iPhone innovation anytime soon, Balsillie says Apple had told only ‘half’ the story, accusing Jobs of manifesting a ‘reality distortion field’. RIM is still hosed, Jim, don’t kid yourself. Read more at Business Insider.
The Mobile Payments War: Apple Takes On PayPal (Computer World)
Google is preparing to take Apple in the mobile payments space, with CEO Eric Schmidt telling Web 2.0 he needs to get NFC (Near Field Communication) into Android‘s life. Easier said than done considering Android isn’t curated and is highly fragmented. So this essentially means PayPal will have to endure this new war and if Apple uses iTunes as a payment system, iPhone users could conceivably pay for items with payments charged to them via iTunes (160 million or more registered users). Join Dan Frommer’s mobile payments discussion at Business Insider.
The iPad Shows Up At Sam’s Club (9To5mac)
The 16GB WiFi iPad has been spotted on shelves at Sam Club for $11 cheaper than it is on Apple’s online store. Considering that Wal-mart is selling the iPad, it was only a matter of time before these showed up at Sam’s Club. You can buy in bulk just in time for the holidays.
Daily Trader: Use A Collar To Protect A Long AAPL Position (CNBC)
With technology down about 5% in the last 5 days, if you’re long Apple and want to protect your position a collar might be worth exploring: sell the AAPL Jan 330 call at $6 and use the proceeds to buy the AAPL Jan 280 Put for $7.80 This protects profit up to $330, losses below $302 and you’re protected below $280.