AAPL (NASDAQ:AAPL) Up Strong With Market
Stocks are on the rise Monday after Caterpillar smashed earnings and raised its forecast on expectations that the economic recovery will continue. Additionally, companies announced a few of takeovers. Catalysts include upgrade cycle and conversion to the iPhone 4S and response to the free iPhone 3GS (see below); update to the iPad in early 2012; continued growth of the Mac business line; mobile adoption in China and emerging markets; the evolution of Apple TV (see below); and platforms such as mobile advertising (iAd), books / publishing and social (Ping). Shares of Apple trade at 8.6x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
The Free iPhone 3GS On AT&T Is Going Like Hotcakes (MacRumors)
AT&T’s (NYSE:T) CEO Ralph de la Vega is seeing “tremendous, tremendous demand for that device even though it’s a generation old.” He’s of course talking about the iPhone 3GS. He says the company is actually “getting more new subscribers coming on to the 3GS on the average than other devices.” Because of pent up demand, he expects AT&T’s numbers to surge in the holiday quarter with the launch of the iPhone 4S as well. Who needs a lower-end phone when Apple can mark down the price of previous versions of the iPhone and still be competitive.
T-Mobile Doesn’t Have The iPhone Because Apple Won’t Make It One (Business Insider)
T-Mobile’s senior vice president of marketing Andrew Sherrard explains why the carrier still doesn’t sell the iPhone; it doesn’t not run on T-Mobile’s 3G or 4G networks. T-Mobile has asked Apple to develop an iPhone with the hardware to run on the those networks and it still hasn’t. “Ultimately, it is Apple’s decision,” he says. Right now, T-Mobile customers can buy an unlocked iPhone but the current iPhone hardware only supports T-Mobile’s slower 2G/EDGE network (~1 million subscribers). No wonder the company wants (needs) to be bought by AT&T.
The iPhone 4S Goes Live In 22 More Countries (SlashGear)
After selling over four millions iPhone 4S’s in the first week, pre-orders are now available in 22 more countries, giving a huge new batch of customers an opportunity to get their hands on the next generation device. The iPhone 4S is now available in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Mexico, Netherlands, Norway, Singapore, Slovakia, Slovenia, Spain, Sweden and Switzerland.
Steve Jobs Finally Cracked The TV Market (The Washington Post)
Nothing like giving away all the secrets with his passing. Steve Jobs told his biographer Walter Isaacson that he figured out how to make a better television set. “It will have the simplest user interface you could imagine. I finally cracked it.” Rumors of Apple (NASDAQ:AAPL) entering the TV arena have been swirling for a few years now. Apple could shake up the TV industry just like it shook up the phone industry with the iPhone, and the portable computing market with the iPad. But can it do it without Steve Jobs?
Apple Holds Ground On Tablet Market Share (eWeek)
Apple (NASDAQ:AAPL) only lost about 1.3% of tablet market share in the summer as Android tablets came out swinging, according to Strategy Analytics. The 11.12 million iPads shipped gave Apple 67% share, down marginally from 68.3% in the spring. Android made up 27% of the rest, with the BlackBerry PlayBook rounding out the bottom. Year-over-year however, when competition was non-existent, Apple had 96% share. Overall, the tablet market moved 16.7 million devices this summer, more than three times the 4.4 million from the same point in 2010. These numbers commingle units shipped and units sold. So take it with a grain of salt.
Android Market Has Caught Up To Apple In Terms Of App Download Figures (VentureBeat)
The Android Market has published more than 500,000 mobile applications. However, Google has removed around 37% of published apps, according to research2guidance. So much for being open. Just as a comparison, Apple’s App Store has had over 600,000 successful submissions with about 24% app removal. Android users are expected to download more apps collectively than do their Apple counterparts by next summer with both reaching 3.2 billion downloads monthly.
Apple Steals Yahoo’s Data Center Guy (GigaOM)
As Apple (NASDAQ:AAPL) ramps up its consumer cloud, spending up to $1 billion on a North Carolina data center, the company needs someone to run it. Scott Noteboom, the man who led Yahoo’s data center operations since 2005, has now joined Apple as a “distinguished gentleman,” according to LinkedIn. Noteboom was involved in Yahoo’s chicken coop data centers and helped expand Yahoo’s Internet portal in scale.
Jonathan Ive Is Untouchable At Apple (AppleInsider)
Apple’s design chief Jonathan Ive has no true boss who can tell him what to do at the company, a distinction put in place by Steve Jobs himself. Jobs revealed that he viewed Ive as his “spiritual partner” at Apple and as such left him more freedom than anyone else in the company. A freedom that remains and “there’s no one at the company who can tell Ive what to do.” That doesn’t mean that Steve didn’t take credit for a lot of Ive’s ideas, however. Ive, a 44-year-old native of London, joined Apple in 1996 and has held his current job since 1997.
Heather Leonard is the Apple analyst at Business Insider.