The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Down As Market Slides
The market is off as China forces banks to raise reserves. Shares of AAPL are off nearly 1% in midday trading as a result. 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).The iPhone Is Worth More Than Just 10 Companies In The World (Fortune)
Assume Apple is worth $391 billion, according to various price targets (nearly 40% more than its current market-cap). The iPhone represents a little more than 50% of that value. The iPhone – were Steve Jobs to spin it off as a separate company, would then be worth $209 billion. At that valuation, there are only 10 companies in the world more valuable than the iPhone including: AT&T, IBM, Proctor & Gamble, Microsoft and Exxon. That’s a big value.
Second Generation iPad Could Launch First Quarter 2011 (DigiTimes)
Apple is tapping overseas suppliers that will provide parts for the second-generation iPad, claiming that manufacturing of the new tablet will start in February 2011 for a first quarter launch. Reports site Tripod Technology and TTM Technologies will create the Printed Circuit Board for the yet-to-be-announced second-generation of the iPad. More second generation rumours with Jay Yarow at Business Insider.
Apple Risking War With European Carriers Over Sim Card (Financial Times)
Europe’s leading mobile operators (Vodafone and France Telecom SA) are warning that they could take punitive action against Apple if the inserts an embedded subscriber identity module, or Sim card, into the iPhone. The operators are accusing Apple of trying to gain control of their relationship with their mobile customers with the new Sim. The technology could allow customers to buy the iPhone and sign up for service on Apple’s website and start using it immediately. Apple is risking a battle over the new Sim with operators, which could refuse to subsidise the $600 iPhone.
The Financial Times High On The iPad (The Unofficial Apple Weblog)
The Financial Times is serious about the future of the iPad. FT launched a free iPad app in May that has been an success story: 400,000 paying subscribers, with over $1.6 million in ad revenues. To show how serious the FT is about the iPad and the future of digital media, the company announced that all 1,800 staff members will receive a $480 rebate against the purchase of an iPad or similar other tablet. Read more at Business Insider.
Apple Appoints Former Northrop Grumman Chief To Board (The Wall Street Journal)
Apple appointed former Northrop Grumman Chairman and Chief Executive Ronald Sugar to its board. The move grows the panel to seven and comes following the death of Jerome York in March. Sugar will also serve as chairman of the company’s audit and finance committee.
Research In Motion CEO Trying To Seem Relevant (GigaOM)
Research In Motion’s CEO Jim Balsillie took swipes at Apple at the Web 2.0 Summit in San Francisco and touted the company’s PlayBook tablet. At best, Balsillie’s comments belie a serious lack of understanding of the tablet / mobile device market as it exists today (which can’t bode well for shareholders). At worst, his comments demonstrate a kind of desperation to be seen as relevant. And that’s a shame, because if the PlayBook really is such a marvellous device, it will speak for itself in holiday sales.