Apple will announce 4M more iPhone sales than supply chain data suggests, says Morgan Stanley

Photo: digitaltrends.com

Photo: digitaltrends.com

Predictions of disappointing Q2 iPhone sales could be unduly pessimistic, says Morgan Stanley’s Katy Huberty. She expects Apple to announce that it shipped 42M iPhones in the first quarter of the year (Apple’s fiscal Q2), rather than the 38M suggested by supply chain analysis, reports Business Insider. This would represent year-on-year growth of more than 4.5M handsets.

Huberty says that the supply chain may work in overdrive during the holiday quarter to generate extra product, and then ease back in the March quarter, thus giving an unreliable read out on sales.

Huberty bases her estimate on a method which sounds eccentric but has an excellent track-record …  Read more

Top Apple execs each awarded 35,000 shares, worth up to $19M at today’s price

apple

An SEC filing reveals that six of Apple’s top execs were each awarded 35,000 Restricted Stock Units (shares that cannot be immediately traded), with a current value of more than $19M. Of this, $12M is awarded outright, subject only to remaining with the company until at least April 2018, with a further $7M dependent on Apple’s stock performance.

The bonuses were awarded to Senior VPs Eddy Cue, Craig Federighi, Dan Riccio, Phil Schiller, Bruce Sewell and Jeffrey Williams. It’s likely that Jony Ive will receive the same, though his stock awards do not have to be reported to the SEC …  Read more

It’s AAPL schizophrenia time: most admired company; institutions bailing; tablet growth falling

Photo: Business Insider

Photo: Business Insider

If you based your assessment of Apple’s future prospects on analyst reports and polls, you’d be upping your medication today while reading three separate sets of numbers.

Fortune reports that Apple tops the ‘most admired companies‘ list for the seventh time in a row, with Amazon and Google the runners-up. The charts are based on polling directors, executives and analysts in the USA’s largest companies.

The same source cites a Morgan Stanley investment note showing that the 30 largest institutional investors, who between them hold at least 30 percent of the shares on the market, have been selling AAPL, with their holdings at a record low …  Read more

Opinion: Why I love Apple products, and am just a tiny bit embarrassed to be seen using them

macbook_air_hero_2x

I love my Apple products. I’ve used Macs since day one. My desk right now has on it my MacBook Pro, MacBook Air, iPad Air, Thunderbolt Display and iPhone. Oh, and an Apple Bluetooth keyboard and Magic Trackpad, of course.

My friends are convinced that I’m incapable of leaving the house without my iPad, and I have to confess that the evidence is on their side. My car has an iPhone dock so I can listen to music and podcasts. If I’m on a plane, train or tube, it’s a near-certainty that I’ll be using my iPad or listening to music on my iPhone – or both.

I love Apple hardware design. Sleek, minimalistic, beautiful. There aren’t that many other really attractive laptops out there, and most of the ones that are have essentially copied Apple’s designs …  Read more

Apple overtaken by Google in Enterprise Value despite having four times the cash flow

Image: jobsplane.in

Image: jobsplane.in

Apple has now been overtaken by Google in ‘Enterprise Value,’ a key measure of the value of a company, despite generating four times as much cash flow, reports Seeking Alpha.

While Apple’s market capitalisation (the total value of all its shares) remains higher, this value includes $141B in cash. Enterprise Value deducts any cash held by a company as – if you were wealthy enough to buy Apple – you effectively immediately get that back from the price you paid. EV is thus considered a better measure of the underlying value the market places on a company. By this measure, the market reckons Apple is worth $339B, while Google is now valued at $342B …  Read more

iTunes as a standalone business would be ranked 130 in the Fortune 500

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Asymco has calculated that if iTunes were a standalone business, it would be ranked 130 in the Fortune 500 list of top U.S. companies after its gross annual revenue grew 34 percent year-on-year to $23.5B. This would put it between Alcoa and Eli Lilly in the rankings, and is almost half of Google’s core search business – not bad for what was originally intended to be a break-even operation

Growth was driven by increases in revenue from App sales reflecting continued growth in the installed base of iOS devices and the expansion in the number of third-party iOS Apps available. Net sales of digital content, including music, movies, TV shows and books, from the iTunes Store was relatively flat in the first quarter of 2014 compared to the first quarter of 2013.

Asymco also calculated the cost to Apple of making both the Mavericks update and iWork software free …  Read more

PC Market exodus continues as LG considers quitting, Mac prices & margins leave Apple almost immune

ultrabook

PC manufacturers seem to be dropping like flies at present. Shortly after Sony confirmed it was selling its PC business and Vaio brand, LG is rumored to be planning its own exit from traditional PCs, to focus on smartphones, tablets and ‘convertible’ PCs (touchscreen Windows tablets that flip round into a laptop).

Other manufacturers are witnessing falling sales, prices and profits – with The Guardian calculating that the average profit per PC in the third quarter of 2013 fell to just £14.87 ($24.09). One manufacturer of conventional-format PCs, however, has remained almost immune to the trend: Apple …  Read more

Apple continues Mac anniversary celebrations with movie shot on iPhones, edited on Macs [Now live]

Apple’s celebrations of the 30th anniversary of the Mac are continuing with a 90-second video added to the Apple.com homepage today. The video was filmed on the anniversary itself.

On January 24, 1984, Apple introduced the Macintosh. And with it a promise that the power of technology, put in the hands of everyone, could change the world. On January 24, 2014, we sent 15 camera crews all over the world to show how that promise has become a reality.

From sunrise in Melbourne to nightfall in Los Angeles, they documented people doing amazing things with Apple products. They shot over 70 hours of footage — all with the iPhone 5s. Then it was edited and scored with an original soundtrack. Thanks to the power of the Mac and the innovations it has inspired, an effort that normally takes months was accomplished in a matter of days.

Read more

Speculation and circumstantial evidence points toward possibility of Apple using solar in upcoming products

Image: 1iphone5wallpaper.com

Image: 1iphone5wallpaper.com

There has long been speculation about Apple incorporating a solar panel into its products, both for environmental reasons and to boost battery-life. There have been Mobile-Solar Apple Jobs that have vanished after discovery, tons of patents, trial rumors and of course the Solar effort/expertise on Apple’s Data Centers and new Campus 2 building. This week, Seeking Alpha has a highly speculative piece by Matt Margolis suggesting that the evidence may be mounting for the iPhone 6 being the product Apple uses to bring the Solar idea to market.

Before we get too far into the speculation, it is worthwhile to note that the surface area of an iPhone would hardly be enough to keep a charge let alone recharge a phone even with the most efficient solar technology in labs today. However, all of the evidence weighed together might make you forget all of that ‘science’…

Read more

Apple’s success in enterprise market “unbelieveable,” with more to come, promises Cook

enterprise

Business Insider highlighted Cook’s celebration of Apple’s success in the enterprise market in the analyst call following its quarterly earnings report.

It’s up to unbelievable numbers. The iPhone is used in 97% of the Fortune 500, and 91% of the Global 500, and iPad is used in 98% of the Fortune 500 and 93% of the Global 500 [...] 90% of tablet activations in corporations are iPads. And 95% of total app activations were on iOS …  Read more

Carl Icahn announces third $500 million AAPL purchase this month after earnings report

As Apple opened down nearly 8% following yesterday’s earnings report from the previous quarter, activist investor Carl Icahn announced this morning his third $500 million purchase of Apple stock since the start of the month. Icahn has notably made a lot of noise being vocal toward Apple’s Board of Directors urging a larger buyback program for shareholders, something Apple’s Board has taken a position against, and today’s investment pegs Icahn’s ownership somewhere around $4.1 billion. Icahn’s recent purchases come ahead of Apple’s scheduled shareholder meeting on February 28, 2014. Read more

AAPL Investors won’t wait forever for new Apple product categories, warns analyst

aapl

While Tim Cook and the rest of the Apple board may be content for Apple to take its time in launching new product categories, investors may be less patient, warns BTIG analyst Walter Piecyk. He also argued that neither the Mac Pro nor a rumored larger-screen iPhone 6 would meet market expectations of innovation.

When we upgraded the stock in March, we assumed Apple could announce a new product that would generate $5 billion of revenue in Fiscal 2014.  That new product never materialized.  We can’t say we are not concerned.  For example, when Apple announced the new Mac Pro at WWDC in June, Phil Schiller proudly boasted, “Can’t innovate, my ass”.  If that is what the company considers to be innovative then there should be some concern for EPS growth.

In the investment note, Piecyk cautions that Tim Cook could face renewed investor scrutiny if he doesn’t deliver …  Read more