THE APPLE INVESTOR: Buy Now, Apple Will Dominate In Mobile Apps And In China

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AAPL Down As Market Finds Footing
The market is trading sideways as pending home sales homes rose for the second straight month but remained far below last year’s pace. Shares of AAPL are off in early trading. 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).

Buy Apple And Google Now To Capture Exploding App Market (MarketWatch)
How many markets will double and triple in size in the next three to four years? How many multi-billion dollar markets will grow like that?  How many markets tap into what will eventually address two to three billion customers? It’s all about the app market. Cody Willard at MarketWatch is advising investors to buy Google and buy Apple because they’ve already won a big place the app future by becoming the de facto standard. He believes the “App Revolution” is going to impact every business on the planet similar to how the Internet did over the last fifteen years.

Buy Apple Long-Term To Capture Chinese Market (The Street)
Should investors be buying Apple because of iPhone 4 adoption in China? Many are saying that the uptake could produce a 2% gain in the stock. That’s more than a usual daily gain but the advice is not to make any short term trades in the stock. Apple doesn’t have much retail presence in China to make a big splash (yet). The numbers there hardly compares to the millions of shipments in the U.S. and Europe. Analysts continue to see Apple as a long term bet going to $350. The only thing holding it back is Google’s Android. However given Google’s rocky road in China, Apple may come out the winner there.

The iPad Being Sold On Amazon In Time For The Holidays (9To5Mac)
Apple is aggressively expanding the iPad’s retail presence in time for the holidays. Target is said to have the item on display “on the glass” and now Amazon is selling the successful tablet online. Amazon is selling the iPad for the same price as Apple, however doesn’t charge any tax in most states. Amazon is only carrying the 32GB and 64GB Wifi versions currently but will likely round out its inventory as we get closer to Christmas. Amazon carried the iPad through third party vendors previously but often with over-inflated prices.

Adidas Yanks $10 Million iAd Campaign (Business Insider)
Apple has lost another advertiser for its iAd mobile advertising business. Adidas, the athletic apparel giant, has pulled out according to Business Insider. As the WSJ reported in August, at least one advertiser before Adidas has pulled out of the iAd program, Chanel. Adidas supposedly pulled its $10+ million ad campaign after Apple rejected its creative concept for the third time. In an effort to dial up ad quality, Apple has taken more control over iAds than any other program in the industry, including making the actual ads themselves.

Don’t Blame Bad PC Sales On The iPad Yet (All Things Digital)
Netbook sales are in decline, but Apple’s iPad isn’t to blame. Not yet, anyway. According to a new survey from NPD, only 13% of iPad owners bought the device in lieu of a PC. For the other 87%, it was an incremental purchase, a luxury purchase. Meaning the reports out that the iPad is cannibalising the PC market are overblown. However, as Apple increases iPad distribution and consumer interest peaks, other tech products with similar usage profiles (notebooks, netbooks and e-readers) will come under increased pressure.

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