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AAPL Rebounding As Markets Drop
After finishing their second best week in a year, stocks are diving, down 2%, on euro debt fears and coaxing investors to book some of the recent gains. Shares of AAPL were not immune from the bloodbath in early trading, but are currently bouncing back in the positive and reaching a new intraday high of over $405 by midday. Catalysts include the launch of the iPhone 5 in the next few weeks (see below); update of the iPad likely in the spring of 2012; continued growth of the Mac business line; mobile adoption in China and other emerging markets; iCloud / iOS 5 rollout and adoption; the continued evolution and next generation of Apple TV (see below); and new platforms such as mobile advertising (iAd), books / publishing and social (Ping). Shares of Apple trade at 10.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
Here Comes The Apple TV, And Not The Little Box, A Legit TV (BusinessWeek)
Get ready. By Christmas 2012 you will have an Apple TV in your living room. A flat-panel Apple television set tied to the company’s online ecosystem and designed as only Apple can do it. There’s a $14 billion rationale for this prediction and TV is the future because it remains king of all media. While handsets get hyped, the typical U.S. consumer watches 5 hours and 9 minutes of TV a day.
Latest iPhone 5 rumour Says Apple To Hold Annual Media Event On October 5 (PocketGamer)
Apple is gearing up for the much anticipated iPhone 5 launch. Inside sources are saying there will be a press conference announcing the new hardware on October 5th, with retail release occurring a week later. This broadly fits with the time frame of recent rumours. At least the symbolism works well for this one: iPhone 5, iOS 5, October 5. And given that iCloud resets next week, that’s not a bad assumption. We’re close.
The iPhone 5 Will Officially Kill Nintendo 3DS (SlashGear)
The Nintendo 3DS has faced a difficult market. In the second quarter, it sold just 710,000 3DS units worldwide with only 110,000 units in the U.S. The 3DS is failing right now, more than any other reason, because of smartphones and tablets offering compelling gaming experiences. And when the iPhone 5 launches in the next several weeks, you can expect it to officially kill off the 3DS.
iPad Gamers Reach 8 Million and Growing (Softpedia)
More evidence that the iPad is eating Nintendo’s and other gaming companies’ lunches. Interpret, a cross-media market research firm, has released a report that demonstrates the iPad’s foray into the gaming industry is attracting not only casual gamers, but also hard-core console gamers. They looked at the 8+ million iPad gamers in the U.S., “a population which continues to grow explosively, both in numbers and as a proportion of all iPad owners” and found that 71% are using the device for playing video games.
Samsung Looks To Block The iPhone 5 (The Korea Times)
In hopes in surprising Apple in its post-climactic bliss of the iPhone 5 unveil, Samsung will try to get the phone banned in Korea by using a patent lawsuit. “Just after the arrival of the iPhone 5 here” the senior Samsung exec revealed, the company “plans to take Apple to court here for its violation of Samsung’s wireless technology related patents.” That’s just in Korea though. Good luck in the rest of the world boys.
Clearwire Partners With China Mobile, LTE In The States Soon For iPhone? (TechCrunch)
Clearwire has inked a deal with China Mobile to collaborate on the development of new TD-LTE devices. And it’s no secret that Clearwire is looking at rolling out an LTE network of their own here in the States. This supposes that Clearwire can get the funding necessary. Neither company made mention of it, but if China Mobile were to pitch in a few bucks, it could generate some more state-side influence for China’s biggest wireless carrier. And China Mobile, of course, has been talking with Apple about offering the iPhone and about 4G LTE technology.
Daily Trader: Apple Is A Stock To Own (Seeking Alpha)
Some investment thoughts:
- Stock To Own For Next Decade: Apple is a must have for the ultimate retirement portfolio. The stock is trading with its historical low P/E of 15.56, and a forward P/E ratio of 12.19. Expect around 20% – 25% annualized return from Apple for the next decade.
- The Bulls And Bears: Research In Motion fell a whopping 19% Friday after the company delivered rather dismal fiscal second-quarter results. That’s bullish for Apple. RBC Capital Markets analyst Robert Breza predicts good things for Microsoft’s upcoming tablet-friendly Windows 8. That’s bearish for Apple.
Apple Launches More Online Stores (MacRumors)
It’s now easier to buy the latest Apple gadgets in the Czech Republic, Hungary, Poland and the United Arab Emirates, thanks to the company’s expansion of its online store. Apple is advertising the new stores on the home page for its website in those countries. These stores extend the reach of Apple’s online store to 37 countries in total.
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