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AAPL Trading Sideways As Q4 Starts
Stocks were on the rise in the morning of the first day of Q4 as signs of strong manufacturing growth in China is driving stocks higher worldwide. Shares of AAPL are currently down over $1, but show signs of recovering. Upcoming catalysts include monthly NPD data (Mac / iPod business); iPhone holiday sales updates and carrier diversification; iPad holiday sales updates and expansion; new content revenue streams such as video, books and social (Ping); and the uptake of the newly refreshed Apple TV. AAPL trades at 16x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Apple In A Huge Lead At Capturing The Digital Living Room (Fortune)
Maynard Um at UBS believes that Apple’s tightly integrated software and content ecosystem is how the company will capture the global digital living room versus the other mega-cap technology and media companies. He believes content is the key and Apple has generated an early lead with iTunes at more than 160 million accounts. iTunes is a hub where users store, transfer, sync and manage content across multiple devices. While other competitors (such as Google and Microsoft) are not far behind, no other company currently offers as much content that is as seamlessly integrated on such attractive platforms as Apple does.
Another Analyst Increases Estimates On The iPad (Forbes)
Stifel Nicolaus believes that iPad sales and growing popularity will continue to push earnings higher. As a result, the analyst raised EPS estimates as well as increased the price target on shares to $360.
The iPod Is Relevant Because Of iOS: One Million Devices (Macworld)
Apple refreshed the iPod product line last month at its traditional fall unveiling, but why is Apple still building iPods in an iPhone world? Michael Gartenberg at Macworld believes that there are three reasons: 1) The Platform: iOS is what matters most, and the iPod touch is the perfect, low-cost device of the iOS ecosystem; 2) Music: people just want the best experience for portable music. Not games, not mail, not cameras; 3) Diversity: by diversifying its product line, Apple enables users to buy in at any level.
More Reports Out That The iPad Is Killing The Netbook Market (Information Week)
Apple’s iPad stole a big chunk of market share from netbooks in the second quarter. DisplaySearch research firm said in its second quarterly report on the laptop market that shipments of the mini-notebooks and other tablet computers combined, without counting in the iPad tablet, would have been down 14% from the first quarter and 13% year over year. With the iPad, overall shipments of netbooks and tablets were down only 4% quarter to quarter, but up 29% year over year. And that’s with all the supply constraints.
Apple TV Might Actually Have A Chance (Wired)
In the introduction of the new Apple TV, Steve Jobs didn’t mention that it runs iOS with hidden software that will eventually allow you to share the media with other iOS devices nor that the software may already be jailbroken. These secret ingredients could be the recipe Apple needs to shake up the television industry. Now that Apple TV has been revamped into a streaming rental service with an arsenal of stealth features, maybe Apple has a chance to change the TV business.