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AAPL On Fire
Despite the negative headlines, Apple stock is ripping, up ~3%. Upcoming events include Tim Cook’s keynote next week at the D10 Conference on May 29 and Apple’s developer conference (WWDC) is slated to start June 11 and the company is expected to make a slew of announcements. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation iPhone in the fall; iPad adoption; market share growth of the Mac business as well as the upcoming refresh; the introduction of the anticipated Apple TV set; and platforms such as Siri, iAd and iBooks. Shares of Apple trade at 8.2x Enterprise Value / Trailing Twelve Months Free Cash Flow(including long-term marketable securities), ridiculously low based on historical trends.The Apple HDTV Could Increase Household Apple Spend To Nearly $900 / Year (Cult Of Mac)
According to Morgan Stanley analyst Katy Huberty, an Apple HDTV would be a huge windfall for Apple. She sees it as likely to double the money that U.S. households spend annually on Apple products within three years. Huberty points out that Apple’s iPhone nearly doubled the amount that the average U.S. home spent on Apple products. She expects a similar doubling as a result of the iPad. That would mean that the average household would be spending around $635 on Apple products. If the Apple HDTV is as a popular as the iPhone and iPad, Huberty expects that by 2015, U.S. households will be spending $888 per year on Apple devices (pu from $150 before the iPhone was launched).
Ok People, It’s Time To Start Backing Up The Truck (Apple Insider)
Andy Zacy at Bullish Cross is initiating his 5th ever buy rating on Apple, just about 11-months after the last recommendation he gave. Andy tends to only publish these buy ratings under extraordinary circumstances, when Apple has been extremely oversold and when the stock’s valuation has become incredibly depressed. He also only publishes these ratings once the markets have seen a substantial sell-off or prolonged period of consolidation. He has never missed a long-term price target on Apple and feels that Apple is a strong buy anywhere between $500 and $530 a share and a buy between $530 and $550 a share. Andy expects Apple to test $750 a share sometime before the end of this coming January, roughly 50% higher than where the stock is trading currently.
While The Rest Of The World Focuses On Facebook, Buy Apple (Forbes)
Darcy Travlos at Forbes bought more Apple at $532. Buying Apple on unexplained stock dips (ie, $85 in 2008) has proven fortuitous. She believes that today, with Apple in the $530-$540s, represents the same opportunity. So what does Apple have going for it?
- Earnings momentum
- Disruptive technology
- Increased penetration
Zig and build a position in Apple, while the rest of the (media) world is zagging and focused on Facebook.
Apple’s Mobile Payment Strategy Will Bypass NFC Technology (The Retail Bulletin)
Apple’s reasons for bypassing NFC can be found in the company’s strategy. Apple only tends to embrace technology solutions that it perceives as working seamlessly and without glitches, which often leads the company to adopt proprietary solutions instead of industry standards. Last year Apple silently upgraded its Bluetooth offering in its entire range to a new subset: Bluetooth Low Energy. This allows low-consumption chips to act passively in the form of stickers in a similar fashion to NFC tags and devices can automatically and passively connect and transfer information seamlessly. It will eventually enable payments on the go, without the need of fixed POS and traditional checkouts.
Apple’s Data centres To Be Run Entirely On Renewable Energy (MacRumors)
Apple received official approval for a 20-megawatt solar farm across the street from its data centre in North Carolina and noted that all of the company’s data centres will be powered by 100% renewable energy. At the North Carolina site, the solar farm is being joined by a second farm of equal size a few miles away. Combined with the 5-megawatt fuel cell facility also being built at the data centre, 60% of the data centre’s power needs will be generated on site. The remaining 40% will be purchased through agreements with outside renewable power producers.
Apple And HTC TO Hash It Out In August, Phones Still Held In Customs (PocketGamer)
Apple and HTC have been ordered by a Delaware district judge to meet to settle their ongoing patent infringement claims on August 28th. The talks will see both companies hash out claims that are currently blocking shipments of new HTC handsets into the US. The latest twist and Apple and HTC’s patent infringement claims saw shipments of the HTC’s flagship handsets the HTC One X and EVO 4G LTE held up at customs due to an International Trade Commission injunction over an Apple patent.
Apple’s Retail Expansion Plans Continue (9To5Mac)
Apple announced plans last year to spend roughly $900 million opening 40 new retail locations in 2012. New stores are already coming to Germany, Spain, Australia and France’s Burgundy wine region, and several reports this week confirmed a handful of new locations for the United Kingdom, France, and Canada. 10 of the 40 stores Apple planned for 2012 will debut in the U.S., and recent reports indicated two of those U.S. stores will be located in California and Salt Lake City.
The iPhone’s Carrier Expansion Plans Also Continue (9To5Mac)
Following a number regional U.S. carriers that launched the iPhone this month, Oklahoma-based Pioneer Cellular announced availability of the iPhone 4S. The carrier covers a large section of Northwest Oklahoma Earlier this month, regional carriers in Kentucky, Kansas, and California launched the iPhone 4S and iPhone 4. In April, five other small carriers added the iPhone. Puerto Rico-based no-contract carrier Open Mobile now also offers the iPhone 4S and iPhone 4 at a number of its stores.
The Jury Is Split: 50% Would Switch To Chrome On The iPhone (Scoople)
When asked if users would switch from Safari to Chrome on the iPhone 50% said yes, while 50% said no. Not very conclusive.