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AAPL Up Strong With Market
Stocks are edging higher, to levels not since since the collapse of Lehman Brothers, on better-than-expected economic data. Shares of AAPL are up strong versus the remainder of tech. Investors continue to be focused on iPhone adoption; update to the iPad; market share growth of the Mac business; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as Siri, iAd, iBooks and social (Ping). Shares of Apple trade at 9.5x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
$62 Billion In Onshore Free Cash Flow Enough For Dividend With 20% Payout (Barron’s)
Credit Suisse analyst Kulbinder Garcha reiterates his Outperform rating on shares of Apple while raising his price target to $600 from $550. A look into Apple’s free cash flow could allow for $62 billion in “excess cash” onshore (as opposed to cash held overseas) over the next four years, providing for a dividend and buybacks, should Apple decide on such. “This is sufficient to fund a dividend of greater than $10 per share or a 2.1% yield (in line with the S&P) as well as leave $22.5bn for cumulative buybacks over 2012-2015 on a sustainable basis.” Garcha uses a “payout ratio” of 20% for a theoretical dividend, which is half the S&P long-term average.
- Not expensive
- Boost iAd
- IntoNow (second screen)
It’ll never happen.
Half Of Kindle Owners Will Buy An iPad 3 (TechBargains)
TechBargains held a recent survey that found that more than half of the participating Kindle Fire owners indicated that they would be buying an iPad 3 when it became available. This statistic, if true, supports the theory that devices like the Kindle Fire are ‘entry-level tablets’ and will make people long for the higher-powered and more full-featured tablets like the iPad. The survey went on to also mention that owners of a Kindle Fire were even more likely to purchase a new iPad 3 than those who didn’t own one of Amazon’s devices.
Apple Finally Dedicated To App Search, Buys Chomp (Various via Scoople)
Apple acquired the app search and discovery platform Chomp in order to rebuild the way that apps are searched for and discovered on the App Store. Chomp has several deals in place with other company’s that will apparently remain in place for now, but with the team and product transitioning into Apple hands, both those deals and any standalone products will be shuttered. Chomp is an application itself, as well as a website, that will let you search any keyword for the iPhone, iPad and Android. Is searching in the App Store how you find most of your apps?
Apple’s Shareholder’s Meeting Is A Snooze Fest (All Things Digital)
Apple’s shareholders meeting yesterday, its first with Tim Cook as CEO, was as anticlimactic and uneventful as they come. Shareholders reelected the company’s board of directors, with each member garnering more than 80% approval. And the company did not announce a dividend or share buyback, despite Cook’s remark last week suggesting that the board has been considering the subject. Tim Cook did happen to mention that Facebook is a “friend” of Apple’s, despite the integration of rival Twitter into iOS.
Combining iPads And Macs, Apple Controls 26% Of The PC Market (AppleInsider)
NPD DisplaySearch reported that Apple shipped 18.7 million iPads during the holiday quarter, representing nearly 80% of the company’s mobile PC shipments. When Apple’s record iPad sales were combined with MacBook sales, Apple achieved shipments of 23.4 million units, good for a 26.6% share. That was well ahead of Hewlett-Packard’s 9.9% share, or 8.7 million units. For the full year (2011), with iPad and portable Mac sales combined, Apple shipped 62.8 million mobile PCs.
Apple Heads To Israel With Tech Recruiter (TUAW)
Apple has posted listings around the Internet for a Technical Recruiter based in Israel. The position asks for quite a bit of recruiting experience (engineering, hardware, and semiconductor industries) and will also need to deal with “hiring ramps of 20+ vacancies,” which means there’s probably a significant team headed to Israel. This isn’t the first we’ve heard of Apple trying to move into Israel, and CEO Tim Cook has said in the past that as well as Apple is doing here in the US and overseas in Europe, the biggest potential for growth is in developing tech nations like Israel and other countries in the Middle East.
U.S. Air Force Special Operations Command Cancels iPad 2 Order (AppleInsider)
Air Force Special Operations Command (AFSOC) canceled an order for 2,800+ iPad 2 tablets that were slated to be used as electronic flight bags. Nextgov reports that the announcement comes two days after the publication queried AFSOC over its inclusion of Russian-developed secure document viewer GoodReader in the outfit’s planned iPad 2 flight software suite. There is no evidence that the software was the cause of the decision to not move forward. It remains to be seen if AFSOC’s cancellation will affect a decision from the Air Force’s Air Mobility Command to order up to 18,000 iPad 2 tablets. The AFSOC could be waiting for the iPad 3. Do you think Android will have more success in the military because it’s “open?”
Apple Confirms Oregon Data centre (MacNN)
Previously known by a code name “Project Maverick,” Apple has confirmed public documents that show it is planning to build another data centre on a 160-acre parcel of land it has purchased from local authorities near Prineville, Oregon. Though completion of a further data centre facility is likely years off, local speculation has it that Apple will again seek to set up a solar-power array to help power the centre as it has done in Maiden, North Carolina. There, Apple is using both solar and bio gas fuel-cell technology to generate “a high percentage” of the facility’s power.
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