The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Slides In Wary Market
Stocks are sliding today as worries arise on inflation in China. Shares of AAPL are off around $1. 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 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Ping Teams Up With Twitter To Drive Users To iTunes (The Wall Street Journal)
Twitter announced that Apple has integrated Ping to see Ping posts tweeted on users’ Twitter feeds. The feature integrates with the iTunes song-preview function, and allows links to be embedded to purchase and download music from iTunes. It’s still not clear that Ping will catch on as a social-networking tool, but clearly that’s Apple’s objective with this integration. Overall, Ping seems to be mainly about directing people to iTunes and promoting music, which isn’t a bad thing for Apple. But it’s definitely more about commerce than social.
Don’t Sit On The Sidelines, There Is Still Upside In AAPL (The Motley Fool)
Even Apple, whose stock price has already climbed 50% year to date, can still offer opportunity for investors because it still remains reasonably priced at a P/E of 21x. Reasons for growth:
- The iPad: The tablet can replace a laptop on the consumer side and be an addition in the enterprise.
- The iPhone on Verizon: Apple will be making its product available to Verizon users in the near future opening up the device to the nation’s largest network.
- International market: International growth in iPhone sales has outpaced U.S. sales. And worldwide tablet sales is expected to increase 690% by 2014.
- Cash: The company currently enjoys a $51 billion war chest (inc. long term securities) and zero debt.
- X-factor: Ever since Steve Jobs returned to Apple, the company’s been thinking years ahead of its competition. No clue what comes next. but it’s likely that Apple will lead the way.
Bottomline: Don’t sit on the sidelines.
iAd Generating Interest In Rivals (The Wall Street Journal)
Interest in mobile advertising generated by Apple’s iAd service appears to be aiding rival mobile advertising companies rather than taking business away. iAd’s high cost of entry may be driving smaller advertisers to Apple’s rivals. Early reports suggested that placement in the iAd program at launch would require as much as a $10 million commitment. That figure may have dropped to a minimum $1 million iAd commitment, but few companies can afford even the seven-figure minimum. Rival agencies are willing to put together ad campaigns for as little as tens of thousands of dollars.
iOS 4.2 Delayed Because Of WiFi Bug (Cult of Mac)
Apple is rumoured to be releasing the newest version of its iPhone and iPad operating software next week. The delay may be due to WiFi issues, as previous reports had alleged that iOS 4.2 would debut Friday. MacStories is saying that this bug will end up delaying iOS 4.2 for as long as two weeks while Apple finds a fix and then tests the new version, but 9to5Mac doesn’t think it will take that long: they’re pegging Tuesday, November 16th as the new iOS 4.2 launch date.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.