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JPMorgan iPad distribution confirmed, says Bloomberg
According to an email obtained by Bloomberg, JPMorgan Chase & Co will be handing out free iPads to all associates in its global investment banking division (that's investment bankers for you and me). In a pilot program to last until May 2011, the bankers will trial the device to see how well it fares as an additional mobile tool as well as being allowed to take advantage of the device for personal use. "We believe there are real benefits in our working environment that can be realized using this device - as well as the personal productivity and enjoyment that come as part of the package," said two New York-based JPMorgan managing directors in the email. The news comes as the BlackBerry trend at Wall Street seems to be shifting more and more towards the iPhone and the iPad. It's no secret the Apple is pushing hard to expand from its well-established consumer market into the corporate world. Bloomberg reports that banks including Morgan Stanley and Credit Suisse Group AG have recently revealed apps built for the iPad, and that Citi Group and Bank of America are considering the iPhone as an option for their employees. According to Brian Marshal, an analyst at Gleacher & Co, "Apple represents a clear and present danger for RIM going forward. For the first time you have a viable alternative to secure mobile communications and by and large we see people moving away from the BlackBerry platform in droves in favor of the iPhone and the iPad." BlackBerry's PlayBook, which is being touted as a real competitor to the iPad, is due out next year. RIM has got some serious catching up to do considering Apple's head start into the tablet-computing world. However, the question is, though the PlayBook seems to fare better against the first generation iPad, will it be able to compete as well with the iPad 2 (rumored for release early next year)? And whether Wall Street's BlackBerry faithful can hold out until next year for the the PlayBook's release?
iSuppli: Apple to sell 120 million iPads by 2012
Many analysts were disappointed when Apple announced 4.2 million iPads sold in Q4 during the conference call yesterday. The consensus -- or hope -- among many on Wall Street was a 5m+ iPad quarter. But if iSuppli's report today is any indication, the Wall Street boys have nothing to worry about when it comes to future iPad sales. iSuppli states that due to increasing component availability (a lack of which, they suggest, is the only thing that kept Apple from selling more iPads), Apple is set to sell a total of 13.8 million units in 2010, up from 12.9 million units. For 2011, iSuppli has raised total iPad sales estimates from 36.5 million to 43.7 million. It gets even better for the tablet maker in 2012, when iSuppli estimates Apple will sell 63.3 million units, up from their original estimate of 50.4 million. If iSuppli's estimates are correct, that means that by the end of 2012 -- just 2 years and 9 month since the iPad went on sale -- Apple will have sold 120 million of them. Now that's a lot of iPads. The increased forecasts are due to greater than expected interest in the iPad from business and education institutions, and also due to the fact that the iPad is now available in more retail outlets like Amazon, Verizon stores, Target, and Walmart.
iPad supply constraints still in play, says Piper Jaffray
As we noted earlier, finding the iPad of your dreams hasn't been getting any easier in recent days. Even with an assumed uptick in production to handle the imminent overseas launch, the search for available units on the ground in the US has been tough. Today's Apple 2.0 note on availability cites a report from Piper Jaffray's Gene Munster, who found that 74% of the 50 retail outlets he surveyed had no iPads in stock, and those that did have some in house only had Wi-Fi models; the 3Gs remain scarce as four-leaf clovers. With 10 day delivery waits on online orders, it's clear that demand has not slackened -- but it may be that a good chunk of the manufacturing allocation is currently heading for the aforementioned country launches that will kick off one week from today. You would think that "We're selling every one of them we can make" is a pretty good problem to have, but that doesn't always play that well. In a classic maneuver known as "the market's glass of unicorn tears is half-empty," Munster simultaneously acknowledges that he completely lowballed his million-unit quarterly estimate for iPad sales while suggesting that the supply constraints may cause Wall Street to balk at AAPL's premium price if the company can't catch up with demand over the summer.
Did AT&T provide cheap iPad data rates to keep iPhone exclusivity?
In a country seemingly obsessed with the question "When is Verizon going to get the iPhone?," it's surprising that AT&T's exclusive iPhone deal with Apple has lasted this long. A post in Computerworld today quotes Wall Street analyst Brian Marshall of BroadPoint AmTech, who believes that AT&T squeezed another 6 months of exclusive iPhone rights out of Apple by agreeing to provide iPad users with 3G data plans at 50% of their normal cost. Marshall and many other analysts expected AT&T's iPhone monopoly to end this summer, but now agree that it will be at least the first quarter of 2011 before Verizon gets a chance to sell the hot Apple smartphone. Many sources had told Marshall that Verizon would land the iPad data plan deal, something that of course did not happen. AT&T offered no-contract, cut-rate deals on data plans for the iPad, and that unprecedented step got Marshall thinking about an AT&T / Apple deal. AT&T and Apple have not replied to requests for comments on the alleged deal. [via MacRumors]
Wall Street analysts anticipate WWDC 09
With WWDC 09 coming up next week, Wall Street analysts are polishing their crystal balls and commenting on what they think we'll hear about. In a post on Barron's Tech Trader Daily blog, Eric Savitz polled the top tech analysts for their ideas. Yair Reiner of Oppenheimer believes that the new iPhones will be delayed until WWDC so that the conference focus will be on Snow Leopard and iPhone OS 3.0. Shaw Wu of Kaufman Brothers is in agreement, and Wu also believes that AT&T will offer more flexible service plans, and that the iPhone line will split into a high-end version with improved battery life and a junior version with less functionality. Savitz's post goes on to tap Phil Cusick of Macquarie Research for his ideas, which also include the split of the line into high-end and entry-level iPhones. He's noted as saying that the high-end phone will include both a front camera for video chat and a rear mounted autofocus camera, but that an OLED screen won't be a feature of this device. Kathryn Huberty of Morgan Stanley is cited as believing that the new iPhones will be unveiled at WWDC, with a $100 price cut, lower AT&T service plan fees, and entrance into the China market, thereby increasing demand. Huberty is noted as thinking that Apple won't add another US carrier before 2011. Vincent Rech of Societe Generale also believes that China is ripe for an iPhone distribution deal. Everybody's favorite research analyst, Gene Munster of Piper Jaffray, has high hopes for AppleTV in the near future, according to a post on the Wall Street Journal's All Things Digital site today. Blogger John Paczkowsi cites Munster as believing that Apple is working on both a new AppleTV for a September release and an App Store to go with it. WWDC 09 might be used as a launch site for an AppleTV SDK, along with an announcement of an App Store for AppleTV for a 2010 launch. Munster, who has a pretty good track record at Apple predictions, feels that future AppleTV apps could include digital video services for expanding content offerings (he cites Hulu as an example) and that an SDK would enable use of the iPhone or iPod touch as a game controller. The consensus? Pretty much everyone believes that new iPhones are imminent, although the timing of the release is up in the air. Several of the analysts believe that the new devices will be announced at a separate Apple event towards the end of June where Steve Jobs can make his long-awaited return to the company. Whatever the outcome of WWDC, be sure to stay tuned to TUAW for our continuing coverage of this important event.
Analysts consult Captain Obvious, expect tough quarters ahead for mobile makers
Enough already, alright? After hearing analysts suggest that the current economic situation would likely hurt handset sales at large, we've now got yet another poll telling us more of the same. After contacting a number of so-called gurus for their input on the situation, 8 out of 22 expected the market to contract next year, meaning that the mobile market could shrink for the first time since the tech crash in 2001; a month ago, just 1 out of 23 analysts polled felt this way. Granted, most still expect Q4 to grow compared to Q3 as individuals splurge during the holiday season, but things may not be so pretty in the new year. Here's an idea: let's make every phone at least as costly as the Softbank 823SH Tiffany -- those seem to be selling like gangbusters.[Via mocoNews, image courtesy of CrashOnMyHead]
Economic madness could hurt handset sales, sales of everything else
Ready for your daily dose of "Thanks, Captain Obvious"? A recent Reuters report is suggesting that the mayhem on Wall Street could really pose a threat to handset makers, with RIM in particular at risk. The logic goes something like this: lots of finance workers probably use BlackBerries, and if their jobs suddenly evaporate, so will their handsets. In truth, all handset makers are going to have a tougher time moving handsets (particularly second, third or fourth handsets) with spending on the decline, and it's said that operators have already started to combat the issue by "shifting their subsidy dollars to more expensive phone models." RIM's co-chief executive Jim Balsille seems a tad less worried, stating: "No matter how much economic challenge there is, how many people do you know that have given up their mobile?" Well played, Jim.[Image courtesy of DemInvest]
Apple Q2 results liveblog, 5 pm ET
We're going to be covering the Apple earnings call live at 5pm ET / 2 pm PT, now that the earnings report is out ($1.16 per share, hot hot hot!). To listen in on the call, you can pick up the QuickTime stream here. Remember, for ongoing coverage of AAPL be sure to check out our sister site BloggingStocks.
iPod rumors cause Apple stock to rise
We all know that Apple is gathering the tech press for a Special Event (notice the capital letters) on September 5th, and it is pretty clear it has something to do with iPods. The rumors are swirling, and helping Apple's stock price.Goldman Sachs has told its clients that this event might introduce the much ballyhooed full screen video iPod. Goldman suggests that people might want to buy some Apple stock, which in turn caused Apple's stock to jump $5 upwards on trading.
Wall Street analyst mock DirecTV's HD claims
There is no doubt that we give DirecTV a hard time around here; after all ,they were at one time the undisputed HD leader. It looks like we're not the only one mocking their claim to add 100 National HD channels this year. Sanford C. Bernstein's Craig Moffett explains DirecTV's interesting methods of counting HD channels and confesses that "we know DirecTV is the best" because Jessica Simpson, Shannon Elizabeth, and Pamela Anderson told us so. While we're not ready to give DirecTV the benefit of the doubt, we are really hoping we get tons of mud on our face from this one.
IBM gearing up to lay off over 100000 American employees?
We'll admit, even we're a bit frightened that immensely intelligent humanoid bots may one day oust us from these seats, but according to whispers going around at IBM's HQ, something just as momentous could be going down as early as this year. Shortly after Lenovo told 1,400 of its US-based employees to politely hop off the payroll, IBM's LEAN plan could call for over 100,000 American workers to be canned in favor of (surprise, surprise) hiring overseas. Already, the firm has laid off 1,300 employees in 2007, but according to a recent report, an ongoing "planning meeting" for how to handle the company's Global Services could eventually axe "up to 150,000 US jobs" while hiring cheaper labor in China and India. Interestingly, this news could actually be sweet music to Wall Street, at least in the short term, but we can't imagine how this logistical nightmare will ever bode well for Big Blue's future.
AAPL drops more than 5 percent in wide market selloff
It may not have been the only bad news on a bleak Wall Street Tuesday, but Apple's 5.3% stock price drop (closing at 83.93, almost 14 points off of January's high) was certainly noticeable. Investors may have seized on the AppleTV ship delay as a sign of slipping execution for AAPL.Now get out there tomorrow and buy buy buy! [Disclaimer: I hold positions in Apple and Intel stock, among other equities. :-] Apologies for the use of the Cha-Ching logo, but I honestly couldn't think of a better illustration for a "market correction" than an empty piggy bank.
INHD's Mojo adding Wall Street Warriors October 22nd
INHD's Mojo TV for "adventurous men" is preparing to debut a new show this Sunday, Wall Street Warriors. Since launching this summer, its featured some enjoyable HD shows including the recently added Doctor Danger. The New York Observer has an article on one of the subjects, the kind of guy who has an HDTV in his $4,200 a month downtown NYC apartment -- which surely describes all of us -- and why INHD thinks this type of programming will be a success. Both the lifestyle and the stress of several individuals who make their living off of the ups and downs of the stock market are profiled in 1080i, new episodes air starting this Sunday with repeats on Wednesdays.
MobileESPN, R.I.P: 2005 - 2006
Whoa Nellie. The folks who scooped Disney's ESPN-branded cellphone service -- MobileESPN -- are now calling for "big changes" in the MVNO. According to Rafat Ali and Staci Kramer who cite "numerous sources," the doomed MobileESPN MVNO is set for "a phased winding down/transition, or getting sold" outright this week, just before Disney's fiscal year draws to a close. A spokeswoman for MobileESPN confirmed an announcement was coming, most likely on Thursday, and that staff would not be laid off this week contrary to rumors. Merrill Lynch already asked Disney to pull the plug in a research note published back in July estimating that MobileESPN had only snagged 30,000 of the 240,000 anticipated subscribers since its Superbowl launch representing a loss of some $135 million for The Mouse. All this is potentially bad news for the likes of Amp'd Mobile and Helio who may be in for an MVNO backlash on The Street where investor sentiment is already pretty low. Oh BJ, not you and the Bear too? Update: Just minutes after we posted the article above, Disney officially dropped the ax on MobileESPN, and the happiest place on earth is just a little bit gloomier today. According to an open letter on the MobileESPN homepage, cellular service will stop as of December 21st, although all that great content that you handful of subscribers have come to enjoy day in and day out will soon be available through one of the major carriers. Meanwhile, existing customers are free to drop the service anytime before the end of the year without penaltly, and once your bills are all paid up, the soon-to-be-defunct MVNO will refund the full cost of your handset. Epitaph: MobileESPN, we had such high hopes for ye, but your glass jaw made a first round KO inevitable. R.I.P, sweet, failed telecom experiment.[Via GigaOM]
Take-Two looks to the PSP for comfort
Take-Two, the company behind the mega-popular brand Rockstar Games, is facing some troubles. Although the company has greater revenues this year than last, Take-Two is facing some serious issues. Firstly, the company has "received additional grand jury subpoenas issued by the District Attorney of the County of New York requesting documents ... regarding stock options and other equity based compensation." Also, Wall Street analysts think that the stock for the company is overvalued: "the current analyst consensus EPS estimates for its third quarter, and revenue and EPS [earnings per share ]estimates for its fourth quarter are too high."With plummeting stock prices, Take-Two looks towards the PSP for solace. The company speaks of the upcoming Grand Theft Auto: Vice City Stories and "a Rockstar PSP title based on a premier brand out of the fourth quarter" as upcoming releases that should more than move a few units. The company hasn't revealed what the mystery PSP title is, but it appears that all bets are on Sony's handheld for the company now.See also:TTWO shares drop on earnings warning, stock option investigation[Via Gamespot]
Document Refutes Blizzard All-MMO Rumors
Yesterday's news that Blizzard will be focusing exclusively on MMO games in the future has been debated ever since it first hit the media, but this might just clear up the controversy once and for all...or at least debunk it, which is half as good.The Cesspit.net has aquired scanned copies of the Wall Street presentation from which the rumors originally sprang, and there is nothing to be found within that would lead anyone to believe that Blizzard is out of the single-player game market. Where the rumors came from, then, is still a mystery, but it looks like that is in fact all they are. I still wanna see that Starcraft MMO, though...
