Apple Recap: Debating iPad Displays, Page Takes Aim, China Rising
Apple (NASDAQ:AAPL) dipped under $500 again on Friday, but managed to end the day at exactly that mark after registering a 0.53 percent fall. What were the stories affecting the share price on the day?
Turn of the iPad Trouble?
A few days after reports of iPhone component cuts comes news that Apple’s display supplier Sharp has “nearly halted” production of 9.7-inch panels used to manufacture the full-size iPad. However, this is possibly with the idea of focusing on smaller screens for the iPad mini. Production of 9.7-inch LCD displays had “fallen to a minimal level” at Sharp’s Kameyama plant in Japan, with the gradual slowdown starting at the end of last year. Reuters sources did not say how much of the Sharp slowdown was due to seasonal changes in demand or just consumers opting for the smaller iPad mini. Concerns that the smaller iPad will cannibalize sales of Apple’s full-size tablet have existed from before the former was launched last November. The smaller, cheaper iPad mini is said to bring in lower margins for Apple than its older version, thus putting a drag on profits. (Read more)
Should you buy or sell Apple’s stock ahead of earnings in a few days? Our 20-page proprietary analysis will help you save time and make money. Click here to get your SPECIAL REPORT now.
Google (NASDAQ:GOOG) chief executive Larry Page was not in a benevolent mood while discussing rivals during a Wired magazine interview, taking swipes at both Apple and Facebook (NASDAQ:FB). Asked about late Apple cofounder Steve Jobs’ threat to start a “thermonuclear war” over the alleged copying of the iOS operating system by Google’s Android, Page asked in response: “How well is that working?”
Page also mocked Apple’s decision to remove Google’s Maps as a default app from iOS devices. “You may have the greatest maps in the world, but if nobody uses them, it doesn’t matter,” Page said. “We’ve been working on Maps for a long time, and it’s nice to see people realize that we’ve put a lot of effort and investment into it.” (Read more)
Winning in China
Apple’s fickle investors may be overlooking the company’s tremendous potential for growth in emerging markets in their pessimistic assessments of its future. That came from analysts at Goldman Sachs, who added in a new research report that a survey of Apple product owners in China had proven that demand for the company was alive and well. From those surveyed, 90 percent were at least likely to stick with the company for their next tablet or smartphone purchase, while 72 percent of iPhone and iPad users were “highly likely” to again choose an Apple device. This indicated that “Apple still appears to have an enviable level of customer loyalty in China,” the report said. (Read more)
Don’t Miss: This News Has Apple Smiling.