Apple has allegedly established a system to minimize licensing costs for 3G components patented by Qualcomm, according to Bernstein Research analyst Toni Sacconaghi. While most 3G OEMs are paying Qualcomm roughly 4 percent on the wholesale price of their phones, Apple reportedly dodges most of the fees and pays an estimated 1.6 percent of its iPhone revenue to the chip maker.
Apple is likely to sell between 2.8 and 2.9 million Macs in the December quarter, according to Piper Jaffray analyst Gene Munster. The forecast is based on October sales data from the NPD Group, which indicates that the month's Macs were up 7 percent year-over-year. Should Apple meet expectations, overall growth for the December period should be 14 percent.
The iPhone could soon become the UK's most popular smartphone, claims a Canalys analyst. Presenting at yesterday's Canalys Mobility Forum event in London, Pete Cunningham observed that the iPhone was the most popular smartphone in France during Q3 2009, a result of the end of an exclusive deal between Apple and regional carrier Orange. The French government ruled that the deal violated competition regulations.
Needham & Co. analyst Charlie Wolf has issued a slight downgrade to Apple stock, dropping his rating from "Strong Buy" to simply "Buy." Apple's share price has grown less than 15 percent over a recent $200 price target, he notes, meeting "admittedly arbitrary" criteria for a lower valuation. Also bearing blame is said to be the economy, which remains in recession and may be the ultimate arbiter of whether Apple makes any gains during the holiday season.
Google on Thursday officially confirmed its acquisition of the VoIP company Gizmo5. Unnamed sources leaked the information earlier this week, including the alleged $30 million price tag. The startup initially had been eyed by Skype, however the deal never materialized.
Google has allegedly moved to acquire the VoIP startup Gizmo5, according to a TechCrunch report. Neither company has announced the sale, although the unnamed sources claim it has been finalized for a sum of $30 million in cash. The purchase follows recent reports that Skype was eying the startup, a deal that never came to fruition.
Google has filed a countersuit against Illinois entrepreneur Erich Specht over the use of the Android trademark, according to the Business Insider. Specht in 1999 launched a company, Android Data Corporation, which sold a number of software titles using the Android name. The USPTO later granted the registration for trademark protection over the name "Android Data."
Apple stock is said to have led the pack in Piqqem's October sentiment ratings, again excelling over Microsoft, which came in last amongst a group of six major technology companies. Apple achieved a score of 3.11, considered high in a scale of 0 to 4. Google was second with 2.88, while Intel ranked third at 2.70. Below the top three were Cisco (2.69), Amazon (2.53) and HP (2.53), followed by Microsoft at 2.27.
Citigroup analyst Jim Suva today signaled a major rethink of its approach to cellphone shares by downgrading both Palm and Research in Motion stock to a "sell" recommendation. The about-face comes as a direct result of the Motorola Droid and a belief that the Android phone is a dark horse which will upset phones like the BlackBerry range or the Pre by upstaging them both at work and through sheer publicity.
Video is likely to be the next big focus of a lot of Apple's digital content, reports RBC Capital's Mike Abramsky. The analyst recently spoke to three Apple executives, including CFO Peter Oppenheimer; the VP for iTunes and Internet services, Eddy Cue; and finally David Moody, the VP for worldwide Mac marketing. The executives note that video is seen as the next "exploding" opportunity after music, but that it is currently being hampered by several obstacles.
Sony has resolved a dispute with Vizio over the latter company's patents involving technology used in LCD televisions. Rather than fight the battle in court, Sony decided to become a licensee for rights to use the technology from Vizio's patent portfolio.
Apple's ad budget for its 2009 fiscal year surpassed $500 million for the first time, as noted in the company's Form 10-K filing with the SEC. Spending from 2008 was closer to $486 million, while the 2007 budget was approximately $467 million. According to Fortune, the Mac maker's marketing spending is still modest compared to the $1.4 billion spent by Microsoft or the $811 million dished out by Dell.
Apple will lose its current "sweetheart" US carrier subsidy if and when it signs an iPhone deal with Verizon, says Brian Marshall of Broadpoint.AmTech. The analyst argues that a Verizon iPhone will arrive in the second half of 2010, but with Apple unable to pressure the carrier into paying the same subsidy per phone required of AT&T, thought to be $450. A more likely Verizon figure is pegged at $300, which may contribute to thinning Apple margins.
Apple has published an official 10-K statement for its 2009 fiscal year, revealing some broader trends. The company for instance sold 54 million iPods, 1 percent less than in 2008; the result was more damaging in financial terms, bringing in 12 percent less revenue at $8.091 billion. Lower selling prices are said to be blame, as each iPod is estimated to have brought in an average of $149, as compared to $167 in 2008.
Apple Stores should return to some measure of growth in the December quarter, argues Needham analyst Charlie Wolf. While worldwide retail revenues were up 9 percent overall in the September quarter, Wolf notes that same-store revenues dipped down 6.3 percent. Outlets also saw Mac sales fall 3 percent, and non-Mac sales slip by 0.6 percent. The latter figure is actually thought to have been alleviated by a doubling of year-over-year iPod touch sales, while the former is described as less severe as a result of updated MacBook Pros.
The host of CNBC's Mad Money, Jim Cramer, has called for an Apple stock price target of $300. In a recent episode of the program Cramer comments on Apple's fourth-quarter results, citing them as a reason for buying Apple stock despite it already being very expensive, hovering close to $200. Apple allegedly revealed in its results call that it is having a hard time keeping up with demand, not only in terms of the iPhone 3GS but many of its products, including Macs. Such a problem is a good one to have, Cramer suggests.
People buying higher-end products are largely responsible for Apple's profitable Q4 results, says Kaufman Bros. analyst Shaw Wu. Apple generated $1.82 in EPS for investors, off $9.9 billion in revenue; both figures are well above prior Kaufman predictions, and still further above Apple's own guidance. Wu attributes the performance to several factors, such as Snow Leopard, cost discipline and component prices that were lower than expected.
Apple did extremely well in its fiscal fourth quarter, say analysts with Needham and UBS. Needham's Charlie Wolf describes 7.4 million in iPhone shipments as "especially impressive," given that the device still has a fairly new install base. Wolf estimates that approximately 5.5 million of the units are fresh activations, rather than upgrades.
Daring Fireball blogger John Gruber and "Fake Steve Jobs" blogger Dan Lyons both suggest Apple is ready to launch new products tomorrow. Lyons claims there is "something brewing" for a news announcement tomorrow, although he declined to provide specific details on the products.
Apple executives fielded a variety of iPhone- and Mac-related questions during a conference call for investors, following the announcement of yet another forecast-beating fiscal quarter. COO Tim Cook provided insight into the company's iPhone pricing while transitioning away from exclusive carrier agreements. Although he did not speak specifically about US plans, Cook expects wholesale prices to remain steady even as the device is sold through additional carriers.
As a part of its fourth-quarter financial results, Apple has also produced detailed segment information. Revenue in the Americas is up 20 percent year-over-year, and now sits at $4.297 billion. European revenue has jumped a substantial 45 percent to $2.491 billion, while Japan has grown 36 percent to reach $434 million. Worldwide retail revenues are up 9 percent to $1.867 billion.
Apple has posted the results of its fiscal fourth quarter for 2009, beating analyst expectations. The company is claiming $9.87 billion in revenue, for a net profit of $1.67 billion, or $1.82 per diluted share. In Q4 2008 quarterly revenue was $7.9 billion, with $1.14 billion in profit and $1.26 per diluted share.
Apple and several other computer makers have been targeted in a patent infringement lawsuit involving Ethernet technology. The plaintiff, US Ethernet Innovations, claims the companies have been using intellectual property contained in at least one four patents originally issued to 3Com between 1994 and 1998.
Kaufman Bros. is sticking with its current predictions on Apple performance ahead of the company's fourth-quarter results call, says an analyst for the firm. Shaw Wu notes that although the firm raised its estimates above consensus about two weeks ago, consensus has since raced ahead again -- perhaps too far -- and now sits at $9.2 billion in revenue with EPS of $1.42. Kaufman figures are $9.1 billion and $1.41.
Analysts are thought to be generally enthusiastic about Apple's fourth-quarter results, set to be announced at 2PM Pacific time on Monday, 5PM Eastern. Thomson Reuters suggests that the company is on average anticipated to record a 17 percent year-over-year rise in revenue to $9.2 billion, producing a 13 percent boost in earnings per share, amounting to $1.42. Apple's own EPS estimates are typically conservative, between $1.18 and $1.23.
Apple's fourth-quarter earnings could disappoint, says Oppenheimer analyst Yair Reiner. In spite of generally optimistic predictions elsewhere, the analyst is calling for "slightly disappointing" revenue, and urging investors to avoid buying shares until after Apple issues its report. The central issue is iPhone sales, which Reiner suggests may fall below his prediction of 6 million units, already lower than a consensus of just over 7 million.
AMD on Thursday reported its third-quarter financial results, indicating an 18 percent revenue increase from the previous quarter. Although the performance exceeded expectations, the company still reported a net loss of $128 million and a 22 percent revenue drop compared to the same quarter last year.
Apple will broadcast its 2009 fourth-quarter results call on Monday, October 19th, beginning at 2:00PM Pacific time, or 5:00 PM Eastern. It will continually rebroadcast through November 2nd. In order to listen, parties must have QuickTime 6 or 7.
Dell's computer shipments have continued a steep decline, as competitors including Acer, Toshiba and Apple have gained market share. The latest data from research firm Gartner appears to corroborate many points from an earlier report issued from IDC.
Arthur Levinson has resigned from Google's board of directors, according to an official statement. The company is terse on details, noting only that Levinson has been with Google since April 2004, and that the resignation is immediate and amicable. "Art has been a key part of Google's success these past five years, offering unvarnished advice and vital counsel on every big issue and opportunity Google has faced," reads a quote from company CEO Eric Schmidt.
The iPhone will account for nearly all of Apple's year-over-year growth when it reports the results of its September quarter, says Caris & Company analyst Robert Cihra. The device is forecast to represent 25 percent of the quarter's reported revenue, or 38 percent of non-GAAP revenue. Cihra has raised his price target for Apple stock, which now sits at $235.
Analyst Shaw Wu of Kaufman Bros. has raised his estimates for Apple, in spite of poor economic signs. The increase is tied to strong momentum from iPod and Snow Leopard sales. The new video-capable iPod nano is said to be leading the way, while the new Touch -- as cheap as $200 -- is described as strong, despite missing rumored additions. Games, meanwhile, are generating more interest in the Touch and iPhone than originally expected. Snow Leopard's $29 price is seen as a major driver in consumption of the new OS.
UBS analyst Maynard Um has switched his rating for Apple stock from Neutral to Buy, and substantially raised his price target, pushing it from $170 to $265. The increase is linked mainly to predictions of repeating iPhone hardware revenue, driven by a growing install base, and the "stickiness" of the App Store. Also important in this regard is thought to be the coming end of exclusive carrier arrangements, such as O2's control over the United Kingdom. Apple is now expected to sell 36 million iPhones in the 2010 fiscal year, instead of 25.9 million. Pro forma revenue and EPS figures are predicted to be $51.6 billion and $11.08.
Two prominent analysts of Apple stock have raised their price targets, Barron's writes. Oppenheimer analyst Yair Reiner has increased his target from $185 to $210, also pushing EPS estimates up to $1.50 for the September quarter, and to $5.97 for FY09. FY10 EPS is now predicted to be $7.76, a jump from $6.49.
HP chief Mark Hurd is allegedly preparing to reorganize the company, with the most significant adjustment involving the printer and PC divisions merged under the same leadership, according to the Wall Street Journal. The sources, claimed to be "familiar with the situation," suggest the plan currently awaits final approval from Hurd.
Thomas Weisel analyst Doug Reid has raised his price target for Apple stock, shifting it from $180 to $210. The analyst cites "store checks" as an influence, indicating continued product demand; also important to the target are factors like higher anticipated IT sales, and China Unicom's iPhone deal. The latter is said to support beliefs that Apple could sell 24.9 million phones during FY2010.
The proposed settlement between Google and various publishing groups has been delayed while both sides attempt to renegotiate new terms, according to the New York Times. The settlement hearing was originally scheduled for October 7th, but US District Court Judge Denny Chin delayed the proceedings indefinitely.
Piper Jaffray analyst Gene Munster has raised his price target for Apple stock from $186 to $235, basing the decision on newly-adopted GAAP accounting rules. While the change has been anticipated since earlier this month, Munster points out new details, such as discrepancies between accounting requirements and the flow of real iPhone revenue. While 90 percent of an iPhone's value is said to be generated at the time of sale, Apple was previously limited to recognizing 12.5 percent of each sale in its GAAP ledgers.
The Financial Accounting Standards Board has officially certified a change in GAAP accounting rules, one which could significantly influence Apple stocks, the Wall Street Journal writes. A draft measure of the change was completed earlier this month, after pressure from corporations including Apple, TiVo and Xerox. As a result, businesses selling hardware linked to subscription services should now be able to report earnings as they are produced, instead of over an extended period.
Over a fifth of the public may be interested in buying Apple's rumored tablet device, says RBC Capital Markets' Mike Abramsky. The analyst notes that in a recent survey of 3,100 people, 21 percent expressed interest in buying the tablet, despite the lack of an announcement by Apple, or even a detailed set of rumored features. The anticipation is considerably higher than the 9 percent measured for the iPhone in April 2007, says Abramsky.
Bill Fearnley, an analyst with FTN Equity Capital, has dropped his rating for Apple stock, lowering it from Buy to Neutral. The analyst is generally positive about Apple's performance, noting that Mac sales are above forecasts, and that the fifth-generation iPod nano is a "big hit." iPhone sales are said to be meeting predictions, though there are stock shortages in some places.
Apple has been rated the 20th best global brand across a variety of industries according to this year's Interbrand report. The company's change in value increased by 12 percent -- creating a brand value of approximately $15.4 billion -- and climbed from the 24th position to its current spot. The latest report suggests Apple's improved ranking was caused by record high iPod sales that saw the Touch's sales double, and all-time high market share for Mac OS software. The ranking was also furthered by the quick response to cost-conscious consumers with the release of lower prices for the iPhone and the voice-activated iPod shuffle.
Macquarie analyst Phil Cusick today upgraded his rating for Apple stock from "Neutral" to "Outperform," and raised his price target from $175 to $220. The worth of Apple stock has already surged past $175 in recent days, and is currently valued at over $185. The spike is generally linked to an upcoming accounting change, which will allow Apple to more accurately state its iPhone and Apple TV revenues.
Microsoft co-founder Paul Allen has made a deal with AT&T to sell the carrier several licenses for wireless spectrum in the Pacific Northwest, according to Bloomberg. The deal was exposed in government documents, although the agreed price has not been disclosed by either party.
A change in accounting rules that will favor Apple is based on the recognition of "hybrid" products, says Kaufman Bros. analyst Shaw Wu. The analyst notes that a number of companies are now dependent on vertically-integrated business models, in terms of hardware, software and services; Apple for instance not only produces the iPhone, it develops the iPhone OS, and runs the iTunes Store. Under the current incarnation of rule SOP 97-2, hybrid products must have deferred revenue recognition.
Apple stock prices have risen sharply within the last 24 hours, a shift attributed to a Tuesday episode of the CNBC TV show Mad Money. Shares climbed 1.6 percent between Tuesday close and Wednesday morning, leaving Apple's stock price at $178. By 12:25PM on Wednesday shares were priced at $182.72, Apple's best opening since August 2008, a month before the onset of a global economic recession. As of approximately 3:12PM on Wednesday, shares had settled down to $182.16.
Apple is likely to release new iMacs and MacBooks "in the next several weeks," claims Wedge Partners. In particular the firm's analysts say they envision an iMac with a "thinner, organic design," including "smoothed or rounded edges." Any changes to the MacBook are "likely to be limited," according to the firm. This could be because Apple announced redesigned MacBook Pros as recently as June.
Amid rumors that Deutsche Telekom, T-Mobile's parent company, is considering a takeover bid for the US rival Sprint, sources claim the German company's biggest shareholders are preparing to force changes, according to the Financial Times. Although both companies have remained mum on any private negotiations, the report corroborates earlier suggestions that D Telekom has become frustrated with the performance of its US subsidiary.
Needham & Co. is raising its price target for Apple stock from $200 to $235, says one of the research firm's analysts, Charlie Wolf. The bump is based entirely on the performance of the iPhone, Wolf notes, and in particular the effects of the App Store. The store is said to have had "explosive" growth since January, and it is thought that a "virtuous circle" involving app developers and smartphone buyers could soon push iPhone sales higher.
The US government has tentatively approved new accounting rules which could significantly impact the iPhone, and possibly the iPod touch, says Fortune. Under influence from corporations like Apple, TiVo and Xerox, the government has relented to pressure and made initial changes to regulations involving subscription accounting. Because Apple releases periodic software updates for the iPhone, the company has had to spread relevant revenue reporting across a two-year time period.
