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Stocks opened higher in early trading amidst another round of corporate earnings. Shares of AAPL are up strong versus the rest of tech after selling off last week. Potential catalysts for the stock include news regarding Steve Jobs' health and return; the rumored second quarter launch of the next generation iPad; monthly NPD data (Mac / iPod business); iPhone sales updates as well as the launch of the iPhone 5 anticipated this summer; new revenue streams such as video, books, newspapers and social (Ping); moving iTunes into the cloud; and the continued evolution and adoption of Apple TV. Shares of Apple trade at 12x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
The App Store Hits 10 Billion Downloads In Two And A Half Years (Apple)
After two and a half years, 90 countries and a plethora of categories, Apple's App Store has hit more than 10 billion downloads worldwide. The company also revealed that it has 160 million iOS users in the world, or about 62 apps per user (that's a lot of apps). Additionally, there are more than 350,000 applications in the App Store with more than 60,000 apps available for the iPad.
Ninety Percent Of Apple's Sales Built Off Operating Systems (asymco)
According to a report from Asymco, the iPhone, iPad and iPod (iOS products) collectively generated sales last quarter of approximately $17.3 billion, accounting for 65% of Apple's total revenue. While iOS dominates, the remainder of Apple's revenue comes from OS X-based products (20%), OS X software (3%), iTunes music sales (2%) and accessories and other non-software products (10%). Based on these figures, 90% of Apple's sales is derived from hardware and software powered by OS X or iOS. Check out Business Insider's Apple model with charts on quarterly revenue breakdown.
Apple Taps Ex-Naval Academy Graduate To Head Global Security (All Things Digital)
Apple has hired David Rice, former Naval academy graduate, executive director of the Monterey Group and faculty member with IANS, as its global director of security. It's the latest in a series of high-profile security hires for the company. Former Mozilla security chief Window Snyder was hired as a senior security product manager last March. David may be familiar to some as the author of Geekonomics. Apple is clearly bolstering its security profile going forward with the rise of iOS devices in enterprise and government.
Despite Wall Streets Gripes, A Good Use Of Cash For Apple Has Been Supply Chain Agreements (Fortune)
The Street has made it abundantly clear what it thinks Apple should do with that cash: dividend, stock repurchase program or both. What analysts fear is that the company will go on a buying spree and start gobbling up something huge (Facebook, Yahoo!, Disney, Sony, etc.). Historically, that has not been Apple's style. A great use of cash for the company has been the $3.9 billion dollars worth of agreements with three unnamed companies in its supply chain.
Apple Nearly Through Approval Process to Begin Selling 3G iPads in China (The Wall Street Journal)
After a key government certification body for gadgets approved what appears to be a 3G-enabled version of the iPad, China Unicom may be about to get the iPad. An Apple device labeled “model A1337″ (with specifications consistent with the tablet device) has passed the State Radio Monitoring Center’s testing process and obtained approval. Because a 3G iPad would likely need to undergo further tests and pass more certifications, the actual date when Apple will announce the device’s availability in China is unknown.
The iPad Is Taking Over Small Business Functions (Cult of Mac)
The iPad is becoming more prevalent in small businesses, including doubling as a cash register. The tablet gets the java going for the crowds at Joe in Grand Central Terminal in New York. ShopKeep is behind the point-of-sale application designed for small businesses with the ability to print receipts, track real-time sales and manage inventory. The iPad is also ringing up customers in the city at Steve’s Ice Cream and Joe up by Columbia University.
Apple Is Back To Infiltrating The Education System With The iPad (The Unofficial Apple Weblog)
Students attending the private Webb School in Knoxville, Tennessee will be required to have an iPad for classes. Jim Manikais, technology director, said this new policy was designed to let students use the device whenever necessary and useful. The school is offering rental plans for parents unable to purchase the tablet. Other academic institutions like Seton Hill and the University of Notre Dame encourage the usage of iPads in the classroom, while textbook publishers like Houghton Mifflin Harcourt are developing applications for use in academic setting.
Daily Trader: Do You Secretly Own Shares Of AAPL? (The Motley Fool)
Many investors own Apple without knowing it. The tech giant is a major component in these popular ETFs:
- Internet Architecture HOLDRs (IAH): 23%
- PowerShares QQQ Trust (QQQQ): 20%
- iShares Dow Jones US Technology ETF (IYW): 13.4%
- Technology Select Sector SPDR (XLK): 12%
- iShares S&P Global Technology (IXN): 10.2%
The next time you hear Apple news, make sure you don't own the stock before you dismiss it. Check out Business Insider's ETF Database.
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See Also:
- THE APPLE INVESTOR: Who Generates A Better Return On Capital – Goldman Sachs Or Apple?
- THE APPLE INVESTOR: Analysts Look Past Steve Jobs, See Apple's Compelling Value And Vision As A Mobile Device Leader
- THE APPLE INVESTOR: Apple Gaining PC Market Share (Without The iPad) But Android Crushing On Mobile Advertising
THE APPLE INVESTOR: 90% Of Apple's Sales Powered By Its Operating Systems (AAPL)
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