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AAPL Seeing The Sept Bump
Shares of Apple are already up 4% in two days of trading this month, keeping up with the historical trend. Future catalysts for AAPL include monthly NPD data (Mac / iPod business); iPhone unit updates and AT&T exclusivity expiration; iPad sales updates; new content revenue streams such as video and books; and the refresh of Apple TV. AAPL trades at 13x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Facebook Not Too Happy About Ping, Blocks Friend Finding Feature (The New York Times)
When you launch into another company’s territory, there are bound to be issues. In the demo Wednesday, Apple used some of Facebook’s open programming interfaces to allow users to find their Facebook friends on Ping (Apple’s new social network). That all came to a halt yesterday as Facebook told users “We’re working with Apple to resolve this issue. We’ve worked together successfully in the past, and we look forward to doing so in the future.” No word on what the issue is nor when it will be resolved.
Is Apple Immune To The Notebook Decline? (electronista)
Either analysts and investors are kidding themselves or Apple appears to be the only company immune from a falloff in notebook shipments. Hewlett-Packard is the hardest hit with notebook shipments expected to reach only 40 million units by the end of the year, well below the company target of 45-47 million units. UBS analyst Maynard Um also pointed to slow sales in most retail outlets. The only heavy traffic was seen at Apple Stores as students sought Macs for the school season.
Apple’s German Wireless Carrier Losing Exclusivity Ahead Of The Holidays (The Wall Street Journal)
According to sources, Deutsche Telekom will lose exclusivity of the iPhone ahead of the holiday shopping season, bringing the number of providers that sell the device in the country to three with the addition of Vodafone and Telefónica’s O2. Diversifying carriers is on analysts’ list for expansion of iPhone dominance. Now if we can just get that to happen in the states.
iTunes Is Apple’s Achilles Heel (The Street)
Paul Kedrosky, contributor at The Street, takes Apple to the mat on iTunes and why it presents a major problem going forward. He likens it to a giant department store; and no body likes those. It’s a monolithic provider of everything, not unlike Microsoft’s Windows NT back in the 90s. It’s unwieldy, and developers and users can’t do anything with it. Peter believes it’s one of the reason why there’s a hole in the market that will allow Google to enter and be successful.
Google Entering The Mobile Music Business Much To The Happiness Of Label Execs (Reuters)
Speak of the devil. Google is negotiating with music labels to secure licensing for a music download store and “digital song locker” that would challenge Apple’s digital music reign and 70% market share. Google Vice President of Engineering Andy Rubin, the wizard behind Android, has been meeting with label executives to pitch an in-development online music store. Rubin hopes to launch the service by Christmas. Industry executives are said to be very enthusiastic about Google entering the market to compete with iTunes.
Longer-Term Investors Should Be Happy With Apple TV Refresh (The Motley Fool)
Investors should be happy with Apple’s announcements from Wednesday’s event. The home entertainment market is extremely lucrative. At $99, Apple TV is cheap enough for users who merely want to stream Netflix and watch cheap rentals on their TV. While Apple is collecting smaller Apple TV sales today, it is just a stop-gap while the company plots a way into this untapped market.
The Trouble With Apple TV (Arstechnica)
No doubt Apple TV is a longer-term strategy, not unlike the iPod was back in the day. But it’s time the company faced some truths: 1) Apple TV is not iTunes – creating a “flagship” experience that comes to define the entire market is nearly impossible to do in such a crowded market; and 2) Make it simpler – one box to rule all satellite, cable, Internet, downloads, streams, etc. Simply put, focus on the problems people actually face in the living room and put aside short-term business and go-to market concerns.
The Bromance Of Jobs And Murdoch (DailyFinance)
Apple’s media announcements this week were made in part by Rupert Murdoch’s willingness to cough up Fox TV content for iTunes. Kind of weird coming from the same man who continuously complains about the importance of getting paid in full for quality content (like his disdain for Google and his annoyance with Amazon’s Kindle revenue share).
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