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AAPL Down With Markets
Markets are down despite improving consumer sentiment. Worries persist about jobs and finances which could curb household spending in the coming months. Shares of AAPL are off with the rest of technology. 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).
Everyone Is Buzzing Over Amazon’s Tablet: Is It Really An iPad Killer? (Various via techDygest)
The question of the week is if Amazon’s tablet will have what it takes to displace some of the market share Apple has amassed with it’s iPad. Many people are saying that it’s no where comparable to the iPad, but at $200, it’s good enough. Amazon is pricing aggressively, losing an estimated $50 per device to gain some ground. That said, when your Kindle Fire is on the blink, where do you go? That’s one huge way where Amazon won’t beat Apple. To join the conversation, weigh in on your iPad killer thoughts at Business Insider.
The iPhone 5 Will Be A Huge Upgrade Cycle For Apple (InMobi)
According to a study, 41% of North American mobile phone owners plan to purchase Apple’s upcoming iPhone 5. And that if the next-gen iPhone turns out to be a more radical update, then over 50% of those users would make the purchase within the first six months. Apple may also get a large number of converts. It estimates that up to 52% of BlackBerry owners would make a dash for the iPhone 5 while 27% of Android users could make the switch. It might be a massive holiday quarter for Tim Cook.
Jobs Reached Out To Samsung Before Patent War Began (Bloomberg)
Before the patent battle between Apple and Samsung became a worldwide legal mess, Apple co-founder Steve Jobs reportedly initiated contact with Samsung last summer in an attempt to resolve the issues out of court. “Samsung is an important supplier with whom we have a deep relationship,” Apple patent attorney Richard Lutton reportedly said in court on Thursday. “We wanted to give them a chance to do the right thing.” That’s not one-sided or anything.
Updated Inventory, The New Phone Is Coming As Are Price Drops For The iPod Touch (9To5Mac)
iPhone 4 models and white iPod touch models have appeared in Apple’s internal inventory systems ahead of next Tuesday’s Apple event. The next-generation iPhone has also made its way into the system. This new iPhone is the N94 device that was found in the iOS SDK months ago. This device is confirmed to pack Apple’s dual-core A5 processor, and is likely have an 8MP camera, 1GB of RAM, Nuance Dictation speech-to-text and stuff we don’t even know about yet. Like supporting 4G.
iPad Production In Brazil Said To Have Stalled (Reuters)
Apple iPad manufacturer Foxconn has been negotiating a deal to produce $12 billion worth of Apple’s tablets in its new facility in Brazil, but now that deal is in doubt. Foxconn’s new manufacturing plant in Brazil may be in jeopardy due to the company’s “crazy demands” related to tax breaks, lack of a skilled workforce, and the logistics of necessary infrastructure. Brazil’s national development bank, BNDES, could withdraw support for Foxconn’s efforts to start iPad production in the country. Overall, it sounds like a big mess.