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AAPL Up With Markets
Despite leaders disagreeing on the next steps for Europe, markets are up on easing fears associated with the debt crisis. Shares of AAPL are up, despite Amazon launching its iPad killer. Catalysts include the launch of the iPhone 5 next week (see below); likely update of the iPad 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; 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).
Invitations Are Out! New iPhone To Be Announced On October 4 (Business Insider)
Finally! The invites to Apple’s iPhone 5 event are out. It’ll be October 4 and Tim Cook can show the world what he’s got. The phone is rumoured to launch on October 14 in the U.S., U.K., France, Germany and Japan. But what’s really going to happen? Business Insider broke down all the rumours and filtered out the junk. This is what to realistically expect from Apple next week.
Here Comes A Ton Of Voice Recognition Advances (Fortune)
If one assumes that Apple puts as much thought into the iconography of its invitations as it does into the icons on its computer screens, there are several conclusions one could draw from the “Let’s talk iPhone” invitation. Piper Jaffray analyst Gene Munster believes it to be a not-so-subtle hint of delivering voice-recognition advances Apple’s been working on since it acquired Siri. He says, “In the past Apple has used its invitation to include cryptic hints as to what it will announce. The phrase on this year’s invite, ‘Let’s talk iPhone’ may be a simple play on words, but may also refer to new speech-based features for the iPhone.”
Is Apple Only Launching One New iPhone? (Daring Fireball)
Apple blogger John Gruber had a cryptic post when it comes to the iPhone event invitation: “Something tells me there’s only one new iPhone.” Coming from anyone else, it wouldn’t be worth a comment, but Gruber has good sources inside Apple, and good intuitions about the company. If he thinks there’s only one iPhone coming, there’s a good chance we’ll only see an iPhone 5, not an iPhone 5 and an iPhone 4S, as has been speculated.
Analysts Quick To Respond To Allegations Apple Quartered iPad Orders (Business Insider)
Not surprisingly, yesterday’s JP Morgan report out of Asia that Apple had suddenly cut fourth quarter iPad orders by 25% has prompted other Wall Street analysts to frantically respond:
- JP Morgan’s own Apple analyst, for example, Mark Moskowitz, who says “Apple is fine”
- Gene Munster at Piper Jaffray thinks Apple is just moving some production to Brazil
- Barclays also rejected the report, suggesting that the cuts might be for components, not iPads
- Susquehanna analyst Chris Caso dismissed the call as “misleading”
- But FBR’s Craig Berger came rushing to defend, saying he’s hearing exactly the same thing
So, there you have it.
The Traditional Line Of iPods Could Be Getting The Axe (TUAW)
It seems that the “product transition” Apple mentioned on the last earnings call could very well be within the iPod line. Specifically, if you want to buy an iPod shuffle or iPod classic from Apple, you should do it sooner rather than later. Those two iPods are rumoured to be getting the axe this year and it’s probably a good idea. It makes a lot of sense. The classic is a holdover from 10 years of iPod existence, bearing many similarities to the original iPod. The shuffle is basically the same form factor as the nano, minus a screen. Neither have touch screens which is where the company is headed.
iPad Has 80% Market Share In North America (BGR)
The iPad managed to capture 80% of the North American tablet market in the second quarter of 2011. Market research and analysis firm Strategy Analytics reported that Apple sold approximately 6 million of the 7.5 million media tablets that were shipped into channels during the second calendar quarter of this year, leaving competitors like Samsung, Motorola and Research In Motion collectively responsible for roughly 1.5 million units.
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