After another blowout quarter, Apple (NASDAQ:AAPL) unsurprisingly attracted the attention of analysts, including Gleacher & Company analyst Brian Marshall, who raised his price target on the company to $450.
Revenue for the quarter came in at $24.67 billion for the quarter, along with $5.99 billion in profit. A total 18.65 million iPhones sold during that time.
Marshall said, “Sometimes we have to step back from our AAPL financial model and simply shake our heads in awe. It is amazing how it developed over the years.”
“To put this into perspective, over [the iPhone’s] five-year timeframe, Apple will have grown its revenue base more than three-fold while simultaneously more than quadrupling its operating profits,” he added.
Marshall estimates Apple will generate $111.4 billion in revenue for calendar year 2011, with EPS of $27.90.
He is also modeling $132.5 billion in revenue for Apple during calendar year 2012, with $40.9 billion in earnings and the iPhone accounting for about 46 percent of the company’s overall sales.
Apple was trading at $352.30, gaining $9.89, or 2.89 percent, as of 2:35 PM EDT. Marshall reiterates a "Buy" rating on Apple.
Showing posts with label iPad. Show all posts
Showing posts with label iPad. Show all posts
Thursday, April 21, 2011
Thursday, April 14, 2011
Microsoft (MSFT) Windows Growth at an End?
Microsoft (NASDAQ:MSFT) Windows may have come to an end in this cycle, according to investor Roger McNamee, who said in an interview with CNBC, "I think Microsoft Windows, this is the cycle where it stops growing."
"The availability of iPads (NASDAQ:AAPL) and smartphones is allowing corporations to trade down and eliminate the thousand dollars per year of supporting a Windows desktop. And this is the year where windows has fallen below 50% of Internet connected device down from 97% a few years ago," he added.
There are so many disruptions in the sector happening at such a fast pace that I think it's far too early to write off Microsoft in the category, although Windows is under pressure, there could be a lot of software play left in Microsoft in the changing environment.
This battle is really just beginning, but there's no doubt Microsoft will have to answer the Windows challenge to meet the revenue and earnings of the past.
Microsoft was trading at $25.28, falling $0.36, or 1.39 percent, as of 1:40 PM EDT.
"The availability of iPads (NASDAQ:AAPL) and smartphones is allowing corporations to trade down and eliminate the thousand dollars per year of supporting a Windows desktop. And this is the year where windows has fallen below 50% of Internet connected device down from 97% a few years ago," he added.
There are so many disruptions in the sector happening at such a fast pace that I think it's far too early to write off Microsoft in the category, although Windows is under pressure, there could be a lot of software play left in Microsoft in the changing environment.
This battle is really just beginning, but there's no doubt Microsoft will have to answer the Windows challenge to meet the revenue and earnings of the past.
Microsoft was trading at $25.28, falling $0.36, or 1.39 percent, as of 1:40 PM EDT.
Thursday, March 31, 2011
Nvidia (NVDA) Pressured on PC, Tablet, Smartphone Worries
Confidence in Nvidia (NASDAQ:NVDA) continues to waver as expectations PC demand will continue to fall and the weak presence the company has in the tablet and smartphone segments.
If the concern over the PC market ends up being true and penetration in the tablet and smartphone market continues to be a challenge, Nvidia is definitely in trouble.
A major hope for the company is its contract wins with smartphones in regard to its Tegra Chip. One negative there is the possibility the release of Motorola's Bionic (MMI) will be delayed; the reason shares fell on Wednesday.
Some analysts see the need for Apple (NASDAQ:AAPL) to redesign its iPhones and ipads with better chips, which would position Nvidia strongly in that area, but that's not here nor there, and it could be a long time before that happens, if it ever does.
As far as the here and now, Nvidia has some major hurdles to overcome before confidence in the company is renewed. Some more wins in the smartphone sector is probably the best bet in the near term.
Nvidia closed Wednesday at $18.45, dropping $0.72, or 3.76 percent.
If the concern over the PC market ends up being true and penetration in the tablet and smartphone market continues to be a challenge, Nvidia is definitely in trouble.
A major hope for the company is its contract wins with smartphones in regard to its Tegra Chip. One negative there is the possibility the release of Motorola's Bionic (MMI) will be delayed; the reason shares fell on Wednesday.
Some analysts see the need for Apple (NASDAQ:AAPL) to redesign its iPhones and ipads with better chips, which would position Nvidia strongly in that area, but that's not here nor there, and it could be a long time before that happens, if it ever does.
As far as the here and now, Nvidia has some major hurdles to overcome before confidence in the company is renewed. Some more wins in the smartphone sector is probably the best bet in the near term.
Nvidia closed Wednesday at $18.45, dropping $0.72, or 3.76 percent.
Tuesday, March 29, 2011
Nokia (NOK) Beefs Up Apple (AAPL) Patent Suits
Nokia (NYSE:NOK) and Apple (NASDAQ:AAPL) are both trading lower today, as the mobile giant boosted the number of patent-infringement claims against Apple.
In the second patent infringement filing with the U.S. International Trade Commission against Apple, Nokia says Applie has violated numerous patents they hold in reference to use in iPads, iPods, Macs and iPhones.
Areas covered in the patents include call quality, positioning, use of Bluetooth accessories, multi-tasking operating systems and data synchronization.
Nokia head of IP, Paul Melin said, “Our latest ITC filing means we now have 46 Nokia patents in suit against Apple, many filed more than 10 years before Apple made its first iPhone. Nokia is a leading innovator in technologies needed to build great mobile products and Apple must stop building its products using Nokia’s proprietary innovation.”
Nokia was trading at $8.68, down $0.06, or 0.69 percent, as of 11:43 AM EDT. Apple was trading at $349.84, falling $0.60, or 0.17 percent.
In the second patent infringement filing with the U.S. International Trade Commission against Apple, Nokia says Applie has violated numerous patents they hold in reference to use in iPads, iPods, Macs and iPhones.
Areas covered in the patents include call quality, positioning, use of Bluetooth accessories, multi-tasking operating systems and data synchronization.
Nokia head of IP, Paul Melin said, “Our latest ITC filing means we now have 46 Nokia patents in suit against Apple, many filed more than 10 years before Apple made its first iPhone. Nokia is a leading innovator in technologies needed to build great mobile products and Apple must stop building its products using Nokia’s proprietary innovation.”
Nokia was trading at $8.68, down $0.06, or 0.69 percent, as of 11:43 AM EDT. Apple was trading at $349.84, falling $0.60, or 0.17 percent.
Staples To Sell (RIMM) (MMI) (DELL) Tablets
As a wave of competitors to Apple's (NASDAQ:AAPL) iPad 2 hit the market, Staples (NASDAQ:SPLS) announced they're going to offer a wide range of new tablets, including those from Research in Motion (NASDAQ:RIMM), Dell (NASDAQ:DELL), Samsung, Acer, Toshiba and Motorola Mobility (NYSE:MMI).
The office supply and electronic retailer said they're now taking pre-orders for a variety of tablets now available.
Staples said they have a goal of becoming a major player in the tablet market as the sector grows.
Major retailing competitors of the company like Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Office Depot (NYSE:ODP) and Radio Shack (NYSE:RSH) have already either committed to or are offering tablets too.
The office supply and electronic retailer said they're now taking pre-orders for a variety of tablets now available.
Staples said they have a goal of becoming a major player in the tablet market as the sector grows.
Major retailing competitors of the company like Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Office Depot (NYSE:ODP) and Radio Shack (NYSE:RSH) have already either committed to or are offering tablets too.
Radio Shack (RSH) in iPad (AAPL) Deal
Sources say Radio Shack (RSH) will start selling Apple's (NASDAQ:AAPL) iPad 2 today, after a reported several days of recent negotiations.
Various sources have confirmed Radio Shack has definitely made the deal to sell the iPad, pushing up the shares of the stock before the close, as news spread of the deal.
RadioShack closed Monday at $15.01, gaining $0.71, or 4.97 percent. Apple closed at $350.44, falling $1.10, or 0.31 percent.
Various sources have confirmed Radio Shack has definitely made the deal to sell the iPad, pushing up the shares of the stock before the close, as news spread of the deal.
RadioShack closed Monday at $15.01, gaining $0.71, or 4.97 percent. Apple closed at $350.44, falling $1.10, or 0.31 percent.
Tuesday, March 22, 2011
Apple (AAPL) Says Global iPad 2 Launch on Schedule
The earthquake in Japan has generated worries that the launch of Apple's (NASDAQ:AAPL) iPad 2 may be in jeopardy, but according to Apple, the international launch of the device remains on schedule.
Apple said the original launch date of March 25 hasn't been changed.
An Apple spokesperson said, "Everything that is on [Apple's U.K.] website still holds true; the website says 25 March and that's when it'll be."
That's different for the Japanese launch, which has been pushed back until a later date.
Countries where the iPad 2 will go on sale on Friday in alphabetical order are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K.
Apple said the original launch date of March 25 hasn't been changed.
An Apple spokesperson said, "Everything that is on [Apple's U.K.] website still holds true; the website says 25 March and that's when it'll be."
That's different for the Japanese launch, which has been pushed back until a later date.
Countries where the iPad 2 will go on sale on Friday in alphabetical order are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K.
Friday, March 18, 2011
Motorola Mobility (MMI) Soars on Release of Xoom
Shares of Motorola Mobility Holdings Inc. (NYSE:MMI) soared close to 7 percent in morning trading Friday as it announced they'll launch Wi-Fi-only version of its Xoom tablet March 27 in the U.S.
According to Motorola, the Xoom has a sharper screen than Apple's (NASDAQ:AAPL) iPad, and runs on Honeycomb, Google Inc.'s Android platform.
The 32-gigabyte version of the Xoom, according to Motorola, will sell for $599.
Motorola Mobility was trading at $26.25, gaining $1.23, or 4.92 percent, as of 11:54 AM EDT.
According to Motorola, the Xoom has a sharper screen than Apple's (NASDAQ:AAPL) iPad, and runs on Honeycomb, Google Inc.'s Android platform.
The 32-gigabyte version of the Xoom, according to Motorola, will sell for $599.
Motorola Mobility was trading at $26.25, gaining $1.23, or 4.92 percent, as of 11:54 AM EDT.
Thursday, March 17, 2011
Credit Suisse (CS) Spins Apple (AAPL) As Most Valuable Company
Shares of Apple (Nasdaq:AAPL) got crushed on Wednesday, plummeting by 4.5 percent after being downgraded.
That has been somewhat answered by Credit Suisse (NYSE:CS) today, who launched coverage on Apple with an "Outperform" rating and a $500 price target. That is a 52 percent upside from Apple's Wednesday close.
Assuming the price target is accurate, it would make Apple the most valuable company in the world. It makes a nice headline and attracts interest, but that 52 percent upside isn't exactly you can turn on or off as a company.
"In its rating, Credit Suisse analyst Kulbinder Garcha concluded that Apple should be able to deliver outsized revenue and earnings growth of 50% and 46%, respectively, over the next two years. This would be significantly greater than the consensus expectations," said TheStreet.
"Garcha said Apple's iPhone is still the driver. He sees Apple's smartphone share rising to 20 percent in 2012 driving volume of 72 million units in 2011 and 112 million in 2012. This would translate into revenue for Apple of $47 billion and $67 billion, respectively.
"On the iPad, Garcha sees the tablet market rising to $120 billion in 2015. In the segment, Apple will continue to dominate and they see the company maintaining share as high as 50 percent long-term. By 2012, the Apple's iPad could become a $34 billion business. In addition, iPad gross margins could expand to 35 percent by the end of this year, up form 27 percent in 2010.
"Garcha said he still sees room for an extra $10 per share in earnings, driven by a low-end iPhone, a greater push into emerging markets, along with enterprise traction."
Apple was trading at $338.55, gaining $8.54, or 2.59 percent, as of 12:14 PM EDT.
Source
That has been somewhat answered by Credit Suisse (NYSE:CS) today, who launched coverage on Apple with an "Outperform" rating and a $500 price target. That is a 52 percent upside from Apple's Wednesday close.
Assuming the price target is accurate, it would make Apple the most valuable company in the world. It makes a nice headline and attracts interest, but that 52 percent upside isn't exactly you can turn on or off as a company.
"In its rating, Credit Suisse analyst Kulbinder Garcha concluded that Apple should be able to deliver outsized revenue and earnings growth of 50% and 46%, respectively, over the next two years. This would be significantly greater than the consensus expectations," said TheStreet.
"Garcha said Apple's iPhone is still the driver. He sees Apple's smartphone share rising to 20 percent in 2012 driving volume of 72 million units in 2011 and 112 million in 2012. This would translate into revenue for Apple of $47 billion and $67 billion, respectively.
"On the iPad, Garcha sees the tablet market rising to $120 billion in 2015. In the segment, Apple will continue to dominate and they see the company maintaining share as high as 50 percent long-term. By 2012, the Apple's iPad could become a $34 billion business. In addition, iPad gross margins could expand to 35 percent by the end of this year, up form 27 percent in 2010.
"Garcha said he still sees room for an extra $10 per share in earnings, driven by a low-end iPhone, a greater push into emerging markets, along with enterprise traction."
Apple was trading at $338.55, gaining $8.54, or 2.59 percent, as of 12:14 PM EDT.
Source
Wednesday, March 16, 2011
Amazon's (AMZN) Kindle Offered Free for Some
It was only recently that the idea of Amazon's (NASDAQ:AMZN) highly popular Kindle will be offered free, and that has become a reality for some, as it is being bundled by Carphone Warehouse - the mobile phone retailer in Europe - which will offer Wi-Fi Kindles for free upon the purchase of a two-year contract on select mobile phones.
There can be no doubt that this will eventually expand, especially as if sales for the contract soar because of the Kindle factor.
Along with Amazon's effort to compete with Netflix by offering free streaming content with every Prime membership, this free Kindle push could be a means to maintain an e-reader lead against Apple's (NASDAQ:AAPL) iPad, Barnes and Noble's (NYSE:BKS) Nook, and the Sony Reader (NYSE:SNE). Still, there's little worry about Kindle abandonment in light of iPad's success. In fact, there's actually an increase in Kindle ownership. Lunden writes:
"In a poll of those buying the iPad 2 over the first weekend of sales found that 24 percent owned a Kindle, compared to 13 percent of original iPad buyers having a Kindle. And only 6 percent use their iPad 2 as an e-reading device, down from 19 percent of those surveyed during the launch of the first iPad," said Paid Content's Ingrid Lunden.
Amazon was trading at $164.01, down $1.07, or 0.65 percent, as of 2:27 PM EDT.
Source
There can be no doubt that this will eventually expand, especially as if sales for the contract soar because of the Kindle factor.
Along with Amazon's effort to compete with Netflix by offering free streaming content with every Prime membership, this free Kindle push could be a means to maintain an e-reader lead against Apple's (NASDAQ:AAPL) iPad, Barnes and Noble's (NYSE:BKS) Nook, and the Sony Reader (NYSE:SNE). Still, there's little worry about Kindle abandonment in light of iPad's success. In fact, there's actually an increase in Kindle ownership. Lunden writes:
"In a poll of those buying the iPad 2 over the first weekend of sales found that 24 percent owned a Kindle, compared to 13 percent of original iPad buyers having a Kindle. And only 6 percent use their iPad 2 as an e-reading device, down from 19 percent of those surveyed during the launch of the first iPad," said Paid Content's Ingrid Lunden.
Amazon was trading at $164.01, down $1.07, or 0.65 percent, as of 2:27 PM EDT.
Source
Wednesday, March 9, 2011
JPMorgan (JPM), iPad (AAPL) and (MMI) (RIMM) Tablet Bubble Bursting
With the positive response to Apple's (NASDAQ:AAPL) iPad 2, JPMorgan (NYSE:JPM) says the tablet bubble could burst, leaving competitors like Motorola Mobility (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) struggling, as they may be producing far too many tablets for the market.
JPMorgan analyst Mark Moskowitz said, "In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan."
Moskowitz believes the number of tablets being made will be at about 65.1 million, far above his original estimate of 47.9 million. He sees a potential oversupply of up to 51 percent.
"Based on our research inputs, tablet makers eager to emulate Apple’s meteoric start are trying to secure components with inflated build plans," Moskowitz added. "Of note, glass displays, processors, and, to a lesser extent, NAND Flash are the components that could be most at risk."
Consequently, he also sees suppliers of components having the most to lose in that scenario.
JPMorgan analyst Mark Moskowitz said, "In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan."
Moskowitz believes the number of tablets being made will be at about 65.1 million, far above his original estimate of 47.9 million. He sees a potential oversupply of up to 51 percent.
"Based on our research inputs, tablet makers eager to emulate Apple’s meteoric start are trying to secure components with inflated build plans," Moskowitz added. "Of note, glass displays, processors, and, to a lesser extent, NAND Flash are the components that could be most at risk."
Consequently, he also sees suppliers of components having the most to lose in that scenario.
Apple (AAPL) Sales Soaring in China
After failing in its first attempt to penetrate the Chinese market, Apple (NASDAQ:AAPL) made the needed adjustments and sales are soaring for the giant tech company.
A year later, its Shanghai’s flagship store is reportedly the most profitable per square foot in the world. There are now waiting lists to buy iPads and iPhones, even though they sell for 30 percent more than in America.
What happened? What did Apple do to turn around its operations when other foreign retailers like Best Buy (NYSE:BBY) and Home Depot (NYSE:HD) had to retreat from the market?
Originally, Apple waited too long to get the iPhone into the market. By the time the iPhone officially sold there, early adopters had already bought around 2 million cracked versions smuggled in from the U.S. and Hong Kong.
So for the iPad, Apple used a different tack. Instead of waiting years as it did with the iPhone, Apple waited only months after it came out in the U.S. to launch the iPad in China. Consumers did not feel the need to travel abroad to shop when they knew products were coming to them soon.
Apple closed Tuesday at $355.76, gaining $0.40, or 0.11 percent.
Source
A year later, its Shanghai’s flagship store is reportedly the most profitable per square foot in the world. There are now waiting lists to buy iPads and iPhones, even though they sell for 30 percent more than in America.
What happened? What did Apple do to turn around its operations when other foreign retailers like Best Buy (NYSE:BBY) and Home Depot (NYSE:HD) had to retreat from the market?
Originally, Apple waited too long to get the iPhone into the market. By the time the iPhone officially sold there, early adopters had already bought around 2 million cracked versions smuggled in from the U.S. and Hong Kong.
So for the iPad, Apple used a different tack. Instead of waiting years as it did with the iPhone, Apple waited only months after it came out in the U.S. to launch the iPad in China. Consumers did not feel the need to travel abroad to shop when they knew products were coming to them soon.
Apple closed Tuesday at $355.76, gaining $0.40, or 0.11 percent.
Source
Micron (MU), SanDisk (SNDK) Recommended on DRAM, NAND Changes
Sterne Agee chip analyst Vijay Rakesh today maintained a "Buy" rating and a $17 price target on shares of Micron Technology (NASDAQ:MU), and a "Buy" rating and a $65 price target on shares of SanDisk (NASDAQ:SNDK), saying that “structural changes” are coming to the DRAM chip market and the NAND flash chip market.
On the DRAM side, Micron’s Taiwanese competitors lack the proper immersion technology to shrink DRAM chips, they have “significantly higher cash and fully loaded costs,” and there simply are fewer viable DRAM suppliers, which is prompting PC OEMs to go easy on their pricing demands.
Rakesh’s point is that with so few DRAM makers in the business these days, PC OEMs are not going to try to drive a hard line on price, because they don’t want to drive anyone out of business, thus creating shortages and driving prices back up.
On the NAND flash side, it’s all about Apple’s (NASDAQ:AAPL) iPad 2, and competing tablets, which have “irreversibly” changed the NAND industry.
Rakesh said, "The tablet market is an entirely new market for NAND, and with the iPad 2, appears to have gotten a second coming, a resurrection of sorts. [T]here were doubts about what another iPad would do, [but] the launch of the iPad2 laid to rest doubts of it being another Blockbuster. The overarching view in Taiwan is that iPad2 is a runaway winner in 2011. While all competing tablets have been pricing at $700-900, the iPad2 pricing at $499 has been a stunner, leaving the competition with no answer. But we believe the view here is, it is short term, where the other PC- handset OEMs will figure out a Tablet Pricing+Android app strategy and come back into the market. Structurally the Tablet segment is here to stay and will only grow in strength."
Micron closed Tuesday at $10.89, down $0.14, or 1.27 percent. SanDisk closed at $46.91, up $0.03, or 0.06 percent.
Source
On the DRAM side, Micron’s Taiwanese competitors lack the proper immersion technology to shrink DRAM chips, they have “significantly higher cash and fully loaded costs,” and there simply are fewer viable DRAM suppliers, which is prompting PC OEMs to go easy on their pricing demands.
Rakesh’s point is that with so few DRAM makers in the business these days, PC OEMs are not going to try to drive a hard line on price, because they don’t want to drive anyone out of business, thus creating shortages and driving prices back up.
On the NAND flash side, it’s all about Apple’s (NASDAQ:AAPL) iPad 2, and competing tablets, which have “irreversibly” changed the NAND industry.
Rakesh said, "The tablet market is an entirely new market for NAND, and with the iPad 2, appears to have gotten a second coming, a resurrection of sorts. [T]here were doubts about what another iPad would do, [but] the launch of the iPad2 laid to rest doubts of it being another Blockbuster. The overarching view in Taiwan is that iPad2 is a runaway winner in 2011. While all competing tablets have been pricing at $700-900, the iPad2 pricing at $499 has been a stunner, leaving the competition with no answer. But we believe the view here is, it is short term, where the other PC- handset OEMs will figure out a Tablet Pricing+Android app strategy and come back into the market. Structurally the Tablet segment is here to stay and will only grow in strength."
Micron closed Tuesday at $10.89, down $0.14, or 1.27 percent. SanDisk closed at $46.91, up $0.03, or 0.06 percent.
Source
AT&T's (T) iPad 2 (AAPL) Getting Unlimited Plan
AT&T Inc. (NYSE:T) announced customers that now have an $30-per-month data plan on their Apple (NASDAQ:AAPL) iPad will have that extended if they buy the iPad 2 when it's released.
Customers wanting to buy the original iPad will now also get a $100 discount.
For the unlimited data plan, that was offered at the beginning of the release of the first iPad to generates sales, and was changed to a tiered plan afterwards.
AT&T closed Tuesday at $28.45, gaining $0.55, or 1.97 percent. Apple closed at $355.76, up $0.40, or 0.11 percent.
Customers wanting to buy the original iPad will now also get a $100 discount.
For the unlimited data plan, that was offered at the beginning of the release of the first iPad to generates sales, and was changed to a tiered plan afterwards.
AT&T closed Tuesday at $28.45, gaining $0.55, or 1.97 percent. Apple closed at $355.76, up $0.40, or 0.11 percent.
Monday, March 7, 2011
Walmart (WMT), Best Buy (BBY) Offering iPad 2 (AAPL)
It appears from the advertisement on Best Buy's (NYSE:BBY) website that they'll be offering the Apple (NASDAQ:AAPL) iPad 2 at the same time as Apple retails stores.
Wal-Mart (NYSE:WMT) also has iPad 2 advertising on its website, but they stop short of giving a particular date it'll have it available. It only says there that device will be coming soon.
So as of now, it seems those making their way to a Best Buy or Apple store will be the first ones to lay their hands on the iPad 2.
The launch date for the introduction of iPad 2 is March 11, with a time of 5 PM scheduled.
Wal-Mart (NYSE:WMT) also has iPad 2 advertising on its website, but they stop short of giving a particular date it'll have it available. It only says there that device will be coming soon.
So as of now, it seems those making their way to a Best Buy or Apple store will be the first ones to lay their hands on the iPad 2.
The launch date for the introduction of iPad 2 is March 11, with a time of 5 PM scheduled.
iPad Killers (AAPL)? Hewlett-Packard (HPQ), Research in Motion (RIMM), Motorola Mobility (MMI)
While some have been all but declaring the tablet war all but over with the introduction of Apples (NASDAQ:AAPL) iPad 2, the truth is this is just the beginning of a long, drawn-out battle, and companies like Hewlett-Packard (HPQ), Research in Motion (RIMM) and Motorola Mobility (MMI) are just getting going.
Last week, Apple's ability to raise even the simplest innovation to the level of an epiphany was once again on display.
Apple's chief evangelist, Steve Jobs, took the stage in San Francisco to unveil the second version of the iPad. It's faster, it weighs less, and it has cameras and other neat things. But the moment of revelation was when Jobs described a new polyurethane cover that Apple (AAPL) has designed for the device.
"Our engineering and industrial-design team came up with this idea of using magnets that grasp it, and auto-align it," said Jobs, his voice rising in intensity as he pronounced "auto-align," as if to convey the wonderment.
In the hands of any other CEO, that moment would have been, well, merely something or other about magnets. With Jobs' air of authority, mixed with genuine enthusiasm and a dash of frisson, the moment surpassed the best any Home Shopping Network pitchman ever had to offer.
Magnets! Of course! Who would have thought!
The performance left the Wall Street analysts in attendance duly stunned, and they promptly declared Apple well ahead of the competition in the tablet-computer wars.
In truth, the tablet war is destined to be a long, long road, and there's no turning back.
Source
Last week, Apple's ability to raise even the simplest innovation to the level of an epiphany was once again on display.
Apple's chief evangelist, Steve Jobs, took the stage in San Francisco to unveil the second version of the iPad. It's faster, it weighs less, and it has cameras and other neat things. But the moment of revelation was when Jobs described a new polyurethane cover that Apple (AAPL) has designed for the device.
"Our engineering and industrial-design team came up with this idea of using magnets that grasp it, and auto-align it," said Jobs, his voice rising in intensity as he pronounced "auto-align," as if to convey the wonderment.
In the hands of any other CEO, that moment would have been, well, merely something or other about magnets. With Jobs' air of authority, mixed with genuine enthusiasm and a dash of frisson, the moment surpassed the best any Home Shopping Network pitchman ever had to offer.
Magnets! Of course! Who would have thought!
The performance left the Wall Street analysts in attendance duly stunned, and they promptly declared Apple well ahead of the competition in the tablet-computer wars.
In truth, the tablet war is destined to be a long, long road, and there's no turning back.
Source
Friday, March 4, 2011
iPad (AAPL) Really Killing Microsoft (MSFT), PCs?
Recently Gartner has been getting a lot of press over their downwardly revised outlook for PC sales because of the Apple (NASDAQ:AAPL) iPad, and how that will affect software giant Microsoft (NASDAQ:MSFT).
Gartner noted, "We once thought that mobile PC growth would continue to be sustained by consumers buying second and third mobile PCs as personal devices. However, we now believe that consumers are not only likely to forgo additional mobile PC buys but are also likely to extend the lifetimes of the mobile PCs they retain as they adopt media tablets and other mobile PC alternatives as their primary mobile device.
"We expect growing consumer enthusiasm for mobile PC alternatives, such as the iPad and other media tablets, to dramatically slow home mobile PC sales, especially in mature markets."
Gartner lowered their notebook computer sales outlook from a growth rate of 15.9 percent to 10.5 percent.
The only question in the short term is what the iPad and others can do, as at this time they are more of a toy and not able to perform the functions of their counterparts.
But as far as consuming media and lesser functions, there's no doubt they're going to take a bite out of PC sales, and Microsoft, from that point of view. Once they are able to do more, it could become even more serious, depending on Microsoft's response, which isn't going to be around the time students go back to school in 2012.
Gartner noted, "We once thought that mobile PC growth would continue to be sustained by consumers buying second and third mobile PCs as personal devices. However, we now believe that consumers are not only likely to forgo additional mobile PC buys but are also likely to extend the lifetimes of the mobile PCs they retain as they adopt media tablets and other mobile PC alternatives as their primary mobile device.
"We expect growing consumer enthusiasm for mobile PC alternatives, such as the iPad and other media tablets, to dramatically slow home mobile PC sales, especially in mature markets."
Gartner lowered their notebook computer sales outlook from a growth rate of 15.9 percent to 10.5 percent.
The only question in the short term is what the iPad and others can do, as at this time they are more of a toy and not able to perform the functions of their counterparts.
But as far as consuming media and lesser functions, there's no doubt they're going to take a bite out of PC sales, and Microsoft, from that point of view. Once they are able to do more, it could become even more serious, depending on Microsoft's response, which isn't going to be around the time students go back to school in 2012.
Microsoft (MSFT) to Release Windows for Tablets in 2012
People with knowledge of the matter said Microsoft Corp. (NASDAQ:MSFT) won't be releasing a tablet competitor to Apple (NASDAQ:AAPL) or Google (NASDAQ:GOOG) until the 2012 back-to-school season.
A beta version won't be available for testing until sometime near the end of 2011, said the sources.
"Microsoft needs to update its Windows 7 operating system with programs more tailored to the touch screens, size and battery life of tablet computers to win a place in the surging market for the devices. The longer it takes Microsoft to release its operating system, the more time Apple and Google have to strengthen their hold on the market, Bloomberg noted.
“If 2011 is the year of the tablet wars, Microsoft will be awfully late suiting up for that battle,” said Michael Gartenberg, a New Jersey-based analyst for research firm Gartner Inc. “It’s not a good position to be in.”
Gartenberg added a 2012 debut for Microsoft would probably put it up against a third-generation iPad from Apple and second and third versions of devices based on Google’s Android system. Hewlett-Packard (NYSE:HPQ) and Research In Motion Ltd. (NASDAQ:RIMM) will probably also release second-generation tablets by then, he concluded.
While that will probably be the case, it will depend upon what Microsoft offers, as possibly dozens, if not over a hundred different tablet offerings will probably be made over the next year or so, and even if some make some headway, Microsoft will gain some share.
And if they provide an excellent Windows version for the device, they could grab a built-in customer they've been serving for a long time.
A beta version won't be available for testing until sometime near the end of 2011, said the sources.
"Microsoft needs to update its Windows 7 operating system with programs more tailored to the touch screens, size and battery life of tablet computers to win a place in the surging market for the devices. The longer it takes Microsoft to release its operating system, the more time Apple and Google have to strengthen their hold on the market, Bloomberg noted.
“If 2011 is the year of the tablet wars, Microsoft will be awfully late suiting up for that battle,” said Michael Gartenberg, a New Jersey-based analyst for research firm Gartner Inc. “It’s not a good position to be in.”
Gartenberg added a 2012 debut for Microsoft would probably put it up against a third-generation iPad from Apple and second and third versions of devices based on Google’s Android system. Hewlett-Packard (NYSE:HPQ) and Research In Motion Ltd. (NASDAQ:RIMM) will probably also release second-generation tablets by then, he concluded.
While that will probably be the case, it will depend upon what Microsoft offers, as possibly dozens, if not over a hundred different tablet offerings will probably be made over the next year or so, and even if some make some headway, Microsoft will gain some share.
And if they provide an excellent Windows version for the device, they could grab a built-in customer they've been serving for a long time.
Thursday, March 3, 2011
Goldman (GS) Boosts Apple (AAPL) Estimates After Unveiling iPad 2
Goldman Sachs (NYSE:GS) increased its EPS estimates on Apple (NASDAQ:AAPL) after the company unveiled the highly anticipated iPad 2.
Goldman said, "The new device offers significant upgrades from the prior version, which we believe should provide an early line of defense against the wave of tablet competitors arriving in the coming months.While these features were largely in line with expectations, the new iPads will ship earlier than the widely anticipated late-March/early-April time frame. We are maintaining our unit estimates due to our view that the iPad 2 will accelerate Apple's competitive momentum in tablets."
Gold raised its estimates for the full year 2011-13, now seeing revenues this fiscal year of $100.4 billion and EPS of $23.29, an increase from $99.37 billion and $23.07.
For 2012, Goldman sees revenue of $122.68 billion and EPS of $28.61, up from a previous view of $119.79 billion and $27.98. In 2013, Goldman sees Apple with revenues of $134.85 billion and EPS of $31.32, up from $131.63 and $30.56.
Goldman maintains a "Conviction Buy List" rating on Apple, which was trading at $358.55, up $6.43, or 1.83 percent, as of 11:21 AM EST. They have a price target of $450 on Apple.
Goldman said, "The new device offers significant upgrades from the prior version, which we believe should provide an early line of defense against the wave of tablet competitors arriving in the coming months.While these features were largely in line with expectations, the new iPads will ship earlier than the widely anticipated late-March/early-April time frame. We are maintaining our unit estimates due to our view that the iPad 2 will accelerate Apple's competitive momentum in tablets."
Gold raised its estimates for the full year 2011-13, now seeing revenues this fiscal year of $100.4 billion and EPS of $23.29, an increase from $99.37 billion and $23.07.
For 2012, Goldman sees revenue of $122.68 billion and EPS of $28.61, up from a previous view of $119.79 billion and $27.98. In 2013, Goldman sees Apple with revenues of $134.85 billion and EPS of $31.32, up from $131.63 and $30.56.
Goldman maintains a "Conviction Buy List" rating on Apple, which was trading at $358.55, up $6.43, or 1.83 percent, as of 11:21 AM EST. They have a price target of $450 on Apple.
Apple's iPad (AAPL) Makes Nice Leap Forward
There was a somewhat tempered outlook on the release of the iPad 2 by Apple (NASDAQ:AAPL), and even though its release was highly anticipated, the unveiling was largely in line with expectations, and it did make a nice jump forward in quality, even it was was more incremental, with nothing exactly screaming at you.
While the announcement wasn’t a game-changer, I think we have become jaded to a degree when it comes to some of the incremental improvements to Apple products. In this case, the ability to increase speed dramatically and add two cameras and various other new bells and whistles to the operating system while decreasing the thickness of the device by one-third is pretty remarkable.
Much of the credit goes to its proprietary A5 chip produced by Apple’s “chip wizards,” as Jobs refers to his semiconductor engineers. These enhancements were achieved without decreasing battery life and increasing the price. As the WSJ and others have noted, Apple’s lower production cost, superior retail channel and aggressive pricing seems to be its biggest competitive advantage.
I held the iPad2 in one hand and my own personal 1.0 iPad in the other, and the difference in weight was certainly noticeable. Certainly, the version 1.0 black cases are also heavier than the new “smart covers” held by magnets.
Will it change your life? Hardly. But from an engineering standpoint, and you can ask any smartphone engineer about this, adding considerably more functionality while decreasing the overall real estate footprint is a very impressive accomplishment.
Apple closed Wednesday at $352.12, up $2.81, or 0.80 percent.
Full Story
While the announcement wasn’t a game-changer, I think we have become jaded to a degree when it comes to some of the incremental improvements to Apple products. In this case, the ability to increase speed dramatically and add two cameras and various other new bells and whistles to the operating system while decreasing the thickness of the device by one-third is pretty remarkable.
Much of the credit goes to its proprietary A5 chip produced by Apple’s “chip wizards,” as Jobs refers to his semiconductor engineers. These enhancements were achieved without decreasing battery life and increasing the price. As the WSJ and others have noted, Apple’s lower production cost, superior retail channel and aggressive pricing seems to be its biggest competitive advantage.
I held the iPad2 in one hand and my own personal 1.0 iPad in the other, and the difference in weight was certainly noticeable. Certainly, the version 1.0 black cases are also heavier than the new “smart covers” held by magnets.
Will it change your life? Hardly. But from an engineering standpoint, and you can ask any smartphone engineer about this, adding considerably more functionality while decreasing the overall real estate footprint is a very impressive accomplishment.
Apple closed Wednesday at $352.12, up $2.81, or 0.80 percent.
Full Story
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