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AAPL Reaches All-Time High
With the iPad on sale in China and set to go on sale today in five South American countries, shares of AAPL rose to a record high yesterday (close price). Upcoming catalysts for AAPL include monthly NPD data (Mac / iPod business); iPhone unit updates and carrier diversification; iPad sales updates and expansion; new content revenue streams such as video and books; and the uptake of the newly refreshed Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Android And An Army Of Hardware Options Will Start To Erode The iPad (Bloomberg)
According to Gartner, tablet computers running Android will start eating into Apple’s iPad this holiday season and may surpass it in a few years as various hardware makers adopt the software for a fleet of models. Samsung’s tablet, Galaxy, will be ready for the holidays and sold by AT&T, Verizon, Sprint and T-Mobile. The iPad may start going the way of the iPhone.
Case In Point: Check Out These 5 iPad Killers (The Street)
Catching the iPad will be a huge feat for any computer maker. Research firm iSuppli said the iPad will account for 74.1% of global tablet shipments this year and next. But beyond that, it’s anyone’s guess. Here are 5 tablets that will give the iPad a run for its money: 1) Samsung’s Galaxy; 2) the HP Slate (or Hurricane); 3) Cisco’s Cius; 4) Toshiba’s Folio 100; and 5) RIM’s BlackPad.
Hola And Ní Hǎo! The iPad Has Arrived (The Unofficial Apple Weblog)
It’s Latin America and China’s turn to get their hands on the iPad. Even though Apple announced this expansion on Monday, the stock took off yesterday as the mainstream media got a hold of it in time for today’s launch. The iPad will come to five Latin American countries (Argentina, Chile, Columbia, Ecuador and Peru) as well as China. Chinese customers are still unable to purchase the iPad Wi-Fi + 3G model because Apple has yet to sign a wireless service contract with a Chinese carrier. Given that China Unicom just now started accepting pre-orders for the iPhone 4, I’d say it might be a while. That said, it’s not stopping the enthusiasm as customers line up by the hundreds.
The iPad Is Destroying PC Sales In Best Buys (The Wall Street Journal)
According to Best Buy CEO Brian Dunn, Apple’s iPad is hitting notebook sales hard. Like, by 50% hard. That’s insane. It’s happening. Notebooks are now outdated and boring while the iPad is compact and cool. Additionally, Best Buy is going to increase iPad presence in its retail stores ahead of the holiday shopping season. Good news for Apple and Best Buy (to an extent), bad news for notebook makers (Acer, HP, Dell) and Microsoft who has OEM deals with most.
Cramer Touts His Options Trade Of The Day For AAPL (The Street)
Jim Cramer, while annoyingly imperious, has a decent AAPL trading idea for the next 24 hours. There has been tremendous buying of the AAPL 270 calls which means there is a ton of short selling as well. These calls expire today. There is no strike at 275. There is at 280. Some will buy the 260s (which are flat) and go long AAPL into Monday. But he poises the question, what would happen if you bought the 260 and the 280s and the stock breaks out? The 270 shorts will cover, but they don’t have the 275s. The stock will certainly breakout at the $274-278 range. It’s a deep in the money and far out of the money call situation could which could be a very low risk, high reward play.