The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Diving With Markets
Stocks are tanking with the NASDAQ off more than 2% as the congressional “super committee” is expected to concede defeat in its bid to lower the deficit. Join us for LIVE coverage of today’s trading session. Shares of AAPL are of as well. Catalysts include iPhone upgrade cycles and adoption; update to the iPad in early 2012; continued market share growth of the Mac business line; penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as mobile advertising (iAd), books / publishing, mapping and social (Ping). Shares of Apple trade at 8.5x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
The Four Keys To Apple’s Success (The Wall Street Journal)
Greg Joswiak, Apple’s vice president of worldwide iOS product marketing, explains the four keys to the company’s success: focus, simplicity, courage and a commitment to being the best.
- Focus: Focus relies on being able to say no to things.
- Simplicity: Making a complex thing simple.
- Courage: Making bold business decisions.
- Be The Best: Only enter a market you can be the best in.
Joswiak has seen his fair share of success while working at Apple, first with the iPod and then with the iPhone and iPad.
Anyone Who Thinks Apple’s Growth Will Rebound Is Living In Denial (Bloomberg)
Anyone who expects Apple’s growth to rebound after sales and earnings shortfalls last quarter is “living in denial,” according to David Nelson, chief strategist at Belpointe Asset Management LLC. “This is no longer a hyper-growth company,” says Nelson. According to Henry Blodget at Business Insider, in layman’s terms that means is “momentum” investors are running for the hills, and their stock is being bought by more patient investors who expect Apple to deliver fine but not great returns. Belpointe has dumped half of its Apple stock in the past two months.
iPad Has 88% Of Global Tablet Web Traffic (Pingdom)
The iPad is the clear leader in global tablet with web traffic 88% share, according to Pingdom. Duh! While exact figures of tablet web use aren’t readily available, StatCounter regularly completes surveys of the percentages of OSes that access the web. When you whittle down those OS web access stats to just tablets, iOS has 87.6%, Android takes 10.9%, webOS has 0.7% and BlackBerry OS has 0.7%.
How Much Cash Does Apple Really Have And Why Is It Earning So Little? (Seeking Alpha)
Apple actually has $9.8 billion in cash and cash equivalents. It also holds another $16.1 billion in short-term marketable securities, which can be converted into cash rather quickly if needed. Including short-term marketable securities in the mix is not unusual. There is also $55.6 billion invested in long-term marketable securities which are less cash-like. The entire amount earned a weighted average interest rate of 0.77%. Can Apple find no better use for this money?
Apple’s Board: Who Are They? (The Washington Post)
Given the recent changes, we thought it might be a good refresher:
- Arthur Levinson: Newly appointed Apple chairman. He is also the chairman of Genentech and a director at renewable energy company Amyris and the Broad Institute of MIT and Harvard.
- Robert Iger: Iger is the chief executive and president at Disney.
- Tim Cook: Jobs’s hand-picked successor as Apple CEO.
- Millard S. Drexler: Chairman and chief executive at J. Crew.
- William V. Campbell: The chairman of the board at Intuit.
- Al Gore: Former vice president.
- Andrea Jung: Jung is the chairman and CEO of the makeup company Avon.
- Ronald D. Sugar: Sugar is the former chairman and CEO of Northrup Grumman.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.