Apple Investing: iMac Dominates This Computer Segment
AAPL (NASDAQ:AAPL) Up Strong In Faltering Market
Unemployment rate falls as economy adds 200K jobs. The markets, however, are not reacting favorably. Despite that, shares of AAPL are up strong. Catalysts for the stock include holiday quarter results to be announced on Tuesday, January 24 at 5:00pm Eastern Time. iPhone upgrade cycles and adoption; update to the iPad in early 2012; continued market share growth of the Mac business line; further penetration in China and emerging markets; the evolution and potential re-conception of Apple TV; and platforms such as Siri, mobile advertising (iAd), books and publishing, gaming, mapping and social (Ping). Shares of Apple trade at 9.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
Apple Broadening Its Reach As Well As Going Down Market (AppleInsider)
Apple will reportedly be opening new store-within-a-store locations in select Target locations later this year, enabling the company to expand its retail reach into smaller metro areas. The company plans to begin operating Apple-branded areas within 25 larger Target stores in locations which can’t support a standalone Apple Store. The initial opening would be a small start, given that Target, the second-largest discount retail chain in the U.S., operates 1752 stores in the US. Apple has opened 359 of its own retail stores globally, 245 of which are in the U.S.
Verizon Sold 4.2 Million iPhones In The Holiday Quarter… (Various via Scoople)
Verizon expects to report a decline of up to 6-percentage-points in its fourth quarter gross profit margins on strong sales of the iPhone. Chief Financial Officer, Fran Shammo, leaked that the company sold 4.2 million iPhones during the holiday quarter. According to Verizon, that’s the highest-ever sales rate for iPhones on a U.S. carrier and more than double the number of iPhones the company sold in the third quarter.
…Meaning There Could Be Upside To iPhone Numbers (Barron’s)
UBS Securities’s Maynard Um reiterated his Buy rating on shares of Apple, and a $510 price target. He believes his iPhone unit estimate for last quarter may be too low relative to historical patterns and the continued worldwide expansion. Piecing it together, “assuming 8 million iPhones from AT&T, 1.2 million from Sprint, and 4.2 million from Verizon, the U.S. alone would make up ~45%” of his 30 million unit estimate. The U.S. mix has not been that high since the summer of 2009, implying upside of about 5 million units.
It’s All About The iPhone And The New Specs – BGR
Sterne Agee analyst Shaw Wu says that the launch of Apple’s next-generation iPhone, the iPhone 5, is more important than Apple’s upcoming iPad 3 and even the rumored iTV, which is reportedly set to launch this summer. Wu says that while Apple’s iPad and its Siri-enabled television set are nothing to scoff at, the iPhone will still account for the biggest chunk of Apple’s revenue and profit in 2012. He believes the new phone will feature a “radical” redesign including a thinner case with a sleeker form factor, a slightly larger display and compatibility with faster 4G LTE networks.
The iMac Accounts for 33% Of All-In-One PC Sales (Bloomberg)
The all-in-one desktop computer sales have grown 39% in 2010 and have reached 14.5 million units according to research firm DisplaySearch. Despite being overshadowed by the MacBook and other mobile devices, Apple’s iMac accounts for a third of the 14.5 million all-in-one desktop computers sold last year. The strength of iMac demand put Apple ahead of Lenovo and HP. The iMac is Apple’s all-in-one system and the company’s strongest selling desktop, also beating out the Mac mini and Mac Pro.
Apple Could Go Big With The iTV (USA Today)
Apple is said to be looking at a 42-inch or larger LCD TV with built-in Wi-Fi for the rumored iTV. Inside the locked-down studio of Jonathan Ive, senior vice president of industrial design at Apple, there’s a slick 50-inch TV. An iTV also is expected to sport different forms of control from a typical TV remote as well as pack a computer chip that could run Apple’s operating system and give the device access to tons of apps. While Apple has movie deals and some TV shows for its Apple TV set-top box, the key piece for an iTV is securing popular cable network content. That will get expensive.
The iPhone 4S Hitting 22 More Countries Next Week, Including China (Various via Scoople)
Get ready for long lines. Apple’s iPhone 4S is set to launch in China and 21 more markets on Friday, January 13th. Countries in Africa, the Caribbean and South America are among the lucky ones. The iPhone 4S was previously rumored to be scheduled for release in the China on January 23rd, but will occur 10 days sooner. The iPhone 4S made its way to Hong Kong in early November 2011 and found instant popularity despite not featuring Mandarin Chinese as one of the languages.
iPad Users Have Downloaded 3 Billion Apps (Softpedia)
ABI Research has released the results of a new Mobile Applications Market study highlighting the huge download rate for Apple’s iPad, and the tough road that lays ahead for Android tablets. iPad users have cumulatively downloaded three billion applications since the launch of the original tablet almost two years ago. This was 19% of all cumulative downloads by Apple users. It took roughly two years to achieve this level of downloads on the iPhone.
Apple Grabs Adobe Exec To Run Advertising (Bloomberg)
Apple hired Adobe executive Todd Teresi to lead its iAd mobile-advertising business, filling a role in an area where the company has struggled and has been without a leader since Andy Miller left. Teresi is reporting to Eddy Cue, a senior vice president who also oversees Apple’s iTunes and the App Store. Teresi, who is currently VP and GM of media solutions at Adobe, previously served as chief revenue officer at Quantcast.
Heather Leonard is the Apple analyst at Business Insider.