THE APPLE INVESTOR: The Changing Of The Guard. What's Next?

London Guards

Wikimedia Commons

AAPL Recovers With Market 
The markets are rebounding from morning losses and climbing up in the positive after Federal Reserve Chairman Ben Bernanke postponed any discussion of further stimulus for late September. Possibly, investors are interpreting the news as a sign that the economy doesn’t need another boost and is heading to recovery. Shares of AAPL are also coming around, currently up over 2%, better than the rest of the tech sector. Catalysts include the next iPhone launch this fall; the iPad 3 in the spring of 2012; continued 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 books / publishing and social (Ping). Shares of Apple trade at 9.3x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).As You Know, Steve Jobs Has Resigned As Apple CEO (Various)
Steve Jobs is very much alive and involved, but given his legacy and contributions, it only seems appropriate to try and offer complete coverage of this somewhat shocking news:

  • Stock Soared Under Jobs (Business Insider): From the time Steve Jobs was named interim CEO to the day he retired, Apple’s stock was up 6,754% (including his recent medical leaves when Tim Cook ran the day-to-day).
  • Jobs Will Stay Active In New Role (Bloomberg): Jobs held an emotional meeting with his executive team afterward and told the board he intends to be an active Chairman.
  • Mossberg Echos That Sentiment (All Things Digital): To be very clear, Jobs, while seriously ill, is very much alive. Extremely well-informed sources at Apple say he intends to remain involved in developing major future products and strategy.
  • Most Memorable Jobs’ Quotes (Business Insider): “Being the richest man in the cemetery doesn’t matter to me…”
  • Jobs Has Over 300 Patents (The New York Times): One way to take a measure of Steve Jobs’ legacy is to search for his patents. If you look at those where Jobs is listed as an inventor, there’s more than 300. Just as a comparison, Bill Gates has only 9.
  • Wozniak Waxes Poetic (Bloomberg): Steve Wozniak calls Steve Jobs the “best business leader of our time.”
  • Google Exec Recalls Jobs’ Attention To Detail (Google+): Jobs called Vic Gundotra and said, “The second O in Google doesn’t have the right yellow gradient.”
  • Tim Cook Reassures Employees (Ars Technica): Tim Cook has already stepped up to reassure Apple employees that the company isn’t going to change. An internal email to employees says Apple is looking forward to Steve Jobs’ continued guidance and that the “best years lie ahead.”
  • When Does The Cook Era Begin? (CNet): We’ll eventually know what traits mark Cook’s Apple, but it may take years for those qualities to surface.
  • Most Powerful Gay Man in America? (Gawker): A friend of mine told me about this story last night, I had no idea. The bright spot of this whole story is Tim Cook is also destined to become an icon for gay advancement.

Other must read essays can be found here. And more importantly, we wish Steve Jobs and his family all the best.

So What’s Next For Apple? (Wired)
That’s what the San Francisco Chronicle asked. Wired has an answer. What can we expect from Apple now that Jobs has stepped down as CEO?

  • Game-changing Apple TV
  • Devices with a hybrid LCD, E-Ink display
  • Integrated projector in mobile devices
  • Voice identification
  • OSX and iOS full convergence
  • Workplace integration

Just to name a few.

Market Research Firm Ups Tablet Estimates, Still Sees iPad Losing Share (IHS)
IHS iSuppli has upwardly revised its global five-year tablet shipment forecast, which now estimates that 60 million tablets will be shipped this year and 275 units will ship in 2015. Most of the firm’s changes revolve around increased market share estimates for Apple’s iPad, though IHS still sees Apple’s share of the market sinking fairly quickly through 2015.

Apple Devices Helping Kill Traditional Checkout For Retailers (All Things Digital)
The death of the traditional checkout is upon us. Retailers Nordstrom, Home Depot and Urban Outfitters have already rolled out iDevice register programs. The iPad and iPhone are already incredibly popular among small business owners as a means of accepting credit card payments. Lowes is set to deploy 42,000 mobile devices across 1,700 stores in the U.S. and Canada by the end of the fiscal year 2011. PacSun will be implementing iPads in 300 stores by the end of this year, with 600 more by the end of next year.

Apple Tops U.S. Retail Chains In Sales Per Square Foot (RetailSails)
On a list of the top 20 U.S. retail store chains, Apple easily leads the pack in retail sales per square foot at well over $5,000. What’s most impressive is the fact Apple has much less experience in retail (10 years as of May) than most of other retailers included in the study. Apple’s fleet of retail stores comprise an integral component to Apple’s marketing efforts, and more importantly, to its bottom line. Foot traffic at Apple’s retail stores increased from 60.5 million in the June quarter of 2010 to 73.7 million people in the most recent quarter.

Acer Still In Denial Even After First Quarterly Loss In Company History (AppleInsider)
Acer reported the first quarterly loss ever, but Chairman¬†Chairman J.T. Wang attempted to convince investors that consumer “fever” for tablets like the iPad will not last. His company has seen numerous struggles since the launch of the iPad, which has cut into the sales of low-cost, low-power netbooks. It isn’t the first time Wang has predicted the downfall of the iPad. Last year, he forecast the iPad’s market share would fall to between 20 – 30% of the tablet market. To date, Apple still controls well over 50%.

Apple Looking To Bring Some Money Home With Tax Holiday Push (Reuters)
With an estimated $1.5 trillion in foreign profits at stake, Apple and other tech companies have continued to show support for an overseas profit tax holiday for U.S. corporations. Apple is a financial backer of the WIN America corporate lobbying group that has garnered millions of dollars for major American corporations. Specifically, Apple is lobbying the U.S. government for a 5% tax holiday. So far, the proposed bill has picked up support of 15 Republicans and 8 Democrats in the House of Representatives.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.