AAPL Trading Down With Market
Shares of AAPL are trading down with the broader market, off $3 to $265 or 23x estimated fiscal-year 2010 EPS and 13x Enterprise Value / Trailing Twelve Months Free Cash Flow. U.S. Apple Stores are closing today between 4-5pm to gear up for the iPad 3G launch, available to customers today at 5pm. Other upcoming catalysts include monthly NPD data (Mac / iPod business); international release of the iPad (May 10); and the launch of the next generation iPhone (likely June 7) as well as the CDMA / Verizon version later this year.
Steve Jobs Leading The New Tech Revolution (The Street)
Investors who are repositioning portfolios and preparing “for a ‘new normal’ of below average growth are missing the big picture,” says Jason Schwarz. He believes the U.S. is leading the charge for another economic revolution and none other than Steve Jobs is at the helm of it. So who are the winners in this new environment? It’s the Twitters, Facebooks and Apples of the world. “Innovation and risk taking are rewarded. As an investor, you want a portfolio full of such companies right now.” Basically if you’re risk adverse, get used to those lackluster returns.
Here Comes A Subscription-Based, Hosted iTunes; Apple Shuts Down Lala (paidContent)
After purchasing the company 5 years ago, Apple is shutting down music service Lala. The closure is likely in preparation for a web hosted or subscription based service through iTunes. iTunes has over 125 million users with credit cards on file. Convincing even a fraction of music lovers to switch to a subscription based model (like mobile apps) could generate significant profits. If I were music rivals Rhapsody and Spotif, I’d be worried.
Developers Take Apps Global As Demand Surges In Asia And Europe (The Wall Street Journal)
Last quarter, most of Apple’s iPhone growth was attributed to demand in Asia and Europe. This phenomenon “has prompted developers of iPhone applications to consider opportunities outside the U.S. for the first time.” Developers are now looking for distribution partners overseas to tailor games to the appetite of specific countries. Application downloads abroad have risen to about 15% of the total downloads, up from 9% a year ago. This will likely continue to increase as the iPad gains traction and newer versions of the iPhone are released this summer.
Flash Support On The iPad and iPhone Not Gonna Happen (Business Insider)
Steve Jobs explained why he won’t support Adobe Flash in 6 rather long-winded points: 1) Adobe is not open; 2) Most video doesn’t use Flash; 3) Flash is buggy and insecure; 4) Flash drains battery-life; 5) Flash is not made for touchscreen; 6) Apple wants apps built specifically for its platform, not to be made to port to others. Mike Schuster at Minyanville is appalled. “Jobs’ deceitful, self-righteous letter against Adobe proves he’s no longer the champion for the customer, a rebel against the elite.” Dan Rayburn at StreamingMedia is outraged as well saying Jobs is lying about Flash and “can’t get his facts straight.”
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