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iPhone as a company worth more than all but 10 companies in the world
Once a company's worth gets into the stratospheric range that Apple now inhabits, financial analysts start to play with the numbers and find all sorts of fascinating things. Stock analysis firm Trefis looked at Apple's product mix and estimated that the iPhone line accounts for about 53.5% of Apple's stock value. By comparison, the Mac weighs in at a paltry 18.3%. Next, Trefis assigned a price estimate of $418 a share to AAPL, which is about 40% ahead of the current stock price but well within estimates from a number of Wall Street analysts. Applying these assumptions -- and they're rather big assumptions -- the iPhone would account for $209 billion of the estimated $391 billion value for Apple. $209 billion... That puts just the iPhone product line at Apple ahead of consumer giants like Coca-Cola ($138 billion), tech heavyweight Google ($204 billion), and any of the pharmaceutical firms, led by Johnson & Johnson ($173 billion). iPhone, Inc. is also worth more than any of the world's automobile manufacturers, with Toyota ($119 billion) leading the pack, and all but Walmart ($243 billion) in the retail business. The iPhone biz is also bigger than any telecom firm with the exception of one -- AT&T at $224 billion. In this perfect world, Apple is the most highly valued company, followed by Exxon Mobile ($349 billion), three Chinese companies, BHP (mining, $236 billion), IBM, Microsoft, and Proctor & Gamble ($243 billion). Of course, this type of conjecture is based on all sorts of assumptions, but it sure is fun to see. [via Fortune Tech]
Real white iPhone 4s supposedly sold on Chinese grey market
Website Giz-China has published photos of what appear to be genuine white iPhone 4s on sale in China. The boxes are marked with a label describing them as being "for internal use only," and certainly look more convincing than many of the knock-offs we see from that area. Prices reportedly range from 5500 Yuan (about $828 as of this writing) to 8000 Yuan ($1204). This type of illegal resale has been a persistent problem for Apple. In 2008, the New York Times estimated that there were 1.4 million ill-gotten iPhones in the world. At this time last year, the Wall Street Journal estimated that number had grown to 2 million in China alone. More recently, security personnel at a Beijing Apple Store were forced to temporarily close the doors while some customers purchased huge numbers of iPhones only to re-sell them just outside the store. Additionally, Apple has begun to introduce new products to the Chinese market more quickly than before, partially in an attempt to eliminate the high-demand, low-supply environment that's so attractive to opportunistic resellers. [Via CrunchGear]
iAd will launch in Europe this December
Earlier today, Apple formally announced its plans to launch iAd in Europe (The UK and France specifically). The initial advertisers will be L'Oréal, Renault, Louis Vuitton, Nespresso, Perrier, Unilever, Citi, Evian, LG Display, AB InBev, Turkish Airlines and Absolute Radio. The Financial Times correctly guessed that Apple would announce its intentions this week. Apple's VP of iAd, Andy Miller, boasted about the program's success in a press release. "In just four months, we've doubled the number of advertisers on the network and thousands of developers now have a valuable new source of revenue." It was only recently that iAds began to roll out globally. Meanwhile, Apple has begun building a new office space for iAd team members in New York City and reached an agreement with the Dentsu Group to bring iAd to Japan. [Via AppleInsider]
Accused Apple manager could be forced to return $1M in kickbacks
Back in August we learned of the arrest of Paul Shin Devine on charges of taking over $1 million in kickbacks from Apple suppliers. Since that time, prosecutors have been following the money trail and have now asked U.S. District Judge James Ware in San Jose, California to order the forfeiture of US$1 million in cash and assets. The government has frozen $950,000 in cash from six different bank accounts belonging to Devine. Devine was a global supply manager for Apple until his arrest and was accused of providing confidential information to suppliers before they negotiated contracts with the company. Prosecutors are still hanging on to Devine's computers as part of the investigation of the case. The indictment of Devine included 23 charges of wire fraud, wire-fraud conspiracy, and money laundering, each of which carries a potential 20 year prison sentence with a conviction. Devine has pleaded not guilty to all of the charges and is currently out on bail.
Dentsu Group and Apple bring iAd to Japan
Apple has inked a deal with the Dentsu Group that will bring iAd to Japan. Dentsu subsidiary cyber communications, inc. (cci) will take over the selling and "creative execution" of iAds in Japan, with a premiere date set for "early 2011." Under this arrangement, Apple will be limited to hosting and delivery. That's a huge change, as Apple has maintained tight control on U.S. iAd spots, occasionally to the peril of some huge deals. It was only recently that iAds began to roll out globally. Meahwhile, Apple has begun building a new office space for iAd team members in New York City. Congratulations and good luck to both Apple and Dentsu Group.
An all-time intraday high for Apple stock
What goes up must keep going up apparently: Apple's stock hit an new, intraday high today of US$320.18 and is trading up $6.24, or 1.99%, as of this writing. These numbers knock out Apple's previous intraday record of $319.00, set just a little while back on October 18, 2010. Apple's survival of the USA's economic downturn has been almost supernatural. In the past few months, we've seen Apple grab nearly 50 percent of handset industry profits, post its first $20 billion quarter, break $300 in the stock market, surpass Microsoft's market cap and set record after record after record. And it all started with two geeks in a garage.
Apple is building a NYC office for the iAd team
Business Insider is reporting that Apple has begun construction on a New York City-based office for members of the iAd team. Referring to information attained from "multiple sources," Dan Frommer says that the building will be in Manhattan near Union Square. The new digs will be a step up from the team's current location in SoHo, where they're using a former Quattro Wireless building that was never meant to hold "more than 30 people." Since Apple is building this space, we can only assume it will be one darn good-looking office. [Via MacDailyNews]
Mac mini prices drop outside the US
Reghardware is reporting that Apple has dropped the international price on Mac mini from £649 to £599 for the base model. In fact, Apple implemented a £50 price reduction across the board in the UK. Those paying in Euros also benefit, as that same model (2.4GHz Intel Core 2 Duo) dropped from 809 € to 709 €. Additionally, the 2.66GHz Snow Leopard Server mini also dropped 150 € in price to 999 € (from 1149 €). Mini prices remained unchanged in Canada, the U.S. and and Australia. GigaOM suggests the drop could be a response to the Mac's recent loss of worldwide market share. That's certainly possible. In any case, the diminutive mini just became more attractive for a number of shoppers. If you've been eying one, now is the time to buy. [Via GigaOM]
Apple Inc. files SEC form 10-K with sales figures
Like every other publicly traded company, Apple Inc. is required to file a form 10-K with the U.S. Securities and Exchange Commission every three months. These typically contain some interesting bits of information that aren't necessarily revealed in press releases. Apple's most recent 10-K chronicles its unit sales and per-unit revenue for its just completed 2010 fiscal year. Apple sold almost 13.7 million Macs in 2010, a 31 percent increase compared to 2009. Interestingly, portables (not including the iPad) accounted for almost two-thirds of that total. Nonetheless, desktops still grew faster than portables with a 45 percent increase to almost 4.7 million units. Unfortunately, Apple doesn't break out sales of specific models, so we're not sure which machines account for the growth. However, it's a safe bet that the huge and gorgeous 27-inch iMac, and perhaps the latest generation mini, accounted for most of the increase. Overall revenue per unit for all Macs (portable and desktop) dropped off a bit from $1,333 last year to $1,279, which points to success for both the mini and the plastic MacBooks. The U.S. market has always been the strongest for Apple, but the increasing popularity of the iPhone and the opening of new retail stores overseas seems to be helping Mac sales, too. Overseas Mac growth outpaced the U.S. in 2010 with Asia-Pacific in particular jumping 62 percent to 1.5 million units while Europe was up 36 percent to almost 3.9 million units. All of these Mac sales, however, are dwarfed by the iPhone and the iPad. Global Sales of the iPhone nearly doubled last year to 40 million units while nearly 7.5 million people picked up the new tablet in its first six months on the market. You can check out all of the details of Apple's 10-K right here. [Via Mac Daily News]
Rumors: Apple to buy Sony?
Over the past decade, Apple has accumulated an enormous bankroll of over $51 billion, spending only a tiny fraction of it on acquisitions. If the current (wild and wacky) speculation around purchasing Sony holds up, that would change. At one point on Tuesday, Sony's stock was up almost 3 percent as the rumor spread among the traders on the Tokyo exchange. Sony's market capitalization is currently less than $34 billion, making a cash buyout a possibility. While Apple has mostly gone from strength to strength over the past 10 years, expanding into new markets like music players and phones, Sony has struggled to gain market traction with its newer products. However, despite having the money in the bank to do such a deal, buying Sony is likely to be a mistake for Apple. Huge mergers like this rarely work out well, and the differences in the corporate cultures between the two companies could cause some serious indigestion. The Japanese government is also likely to offer some serious resistance to having one of its corporate jewels swallowed up. Rather than buying Sony whole, it might make more sense for Apple to just buy part of the company, such as its film/music library or the TV business. On the other hand, Apple might just want to look elsewhere to get something that it doesn't compete with, like Disney or Facebook. [hat tip to MacRumors]
Apple joins Facebook, Google, others to combat Paul Allen's charges
Back in August, Microsoft co-founder Paul Allen formally sued 11 tech companies, including Apple, over the use of technologies for which he holds the patents. Now, Apple has joined Google, Facebook, Yahoo! and others in opposing the suit. Google initially filed a motion to dismiss the claims on October 18th, stating that Allen's company, Interval Research (which ceased operation in 2000), had failed to explain exactly how Google had supposedly violated its patents. Additionally, Google claims that Interval is lumping all 11 defendants together without demonstrating any "coordinated action." Apple joined Google and others on October 21st with its own filing, stating, "Interval has sued eleven major corporations and made the same bald assertions that each defendant infringes 197 claims in four patents. As the U.S. Supreme Court noted in Twombly, it is in this type of situation in which courts should use their 'power to insist upon some specificity in pleading before allowing a potentially massive factual controversy to proceed." In other words, spill the goods or move on. Allen's suit identifies four specific patents, including one that determines how websites suggest products based upon customers' recent searches, and another that lets users reading a news story quickly find related stores. We'll have more on this story as it develops.
Piper Jaffray raises Apple price target to $429
Piper Jaffray has raised the price target on shares of AAPL to US$429 following yesterday's financial report from Apple. The company posted its first $20 billion quarter, beating expected earnings. In addition, Piper Jaffray raised FY11 revenue growth rate from 24% to 32%. In a note to clients issued today, Jaffray said, "While shares of Apple may pull back today (10/19), we would be buyers based on our belief that investors will gain optimism over the next three months that the growth story will continue." Indeed there was a bit of a pullback, as AAPL dropped 5.6% in after-hours trading on Monday. The stock fell to $299.70, down $18.30 (-5.75%), within two hours of yesterday's announcements. The drop was blamed on iPad sales of 4.1 million; more were expected. For more Apple financial news, look here.
TUAW Liveblog of the Apple Q4 financial results conference call
We're liveblogging today's Apple earnings results in the CoverItLive widget below -- be sure to click and join in to share your comments! You can also listen in on the call via QuickTime streaming. <a href="http://www.coveritlive.com/mobile.php/option=com_mobile/task=viewaltcast/altcast_code=c8ce24b652" >TUAW's Coverage of the Apple 4Q Financial Call</a>
Apple releases Q4 results: $20.34B revenue, $4.31B profits
Top line: hell of a beat. Apple today reports earnings of $4.31 billion, or $4.64 a share, in the fiscal fourth quarter, versus $1.82 a share in the year-ago quarter. Street guess was $4.08 a share on sales of $18.90 billion, according to Thomson Reuters, so like I said: hell of a beat. 3.89 million Macs were sold during the quarter (not 4M, but close, very close). 14.1m iPhones (almost 2x the previous year's number) and 4.19m iPads also sold in Q4. Looking ahead, Peter Oppenheimer forecasts $23B in revenue and $4.80 per share earnings in the holiday quarter. Given the degree to which this quarter beat the predictions... whoa. Join us at 5pm ET for the liveblog of the analysts' results call. Disclaimer: I am a happy holder of a small amount of AAPL.
In advance of Q4 earnings call: AAPL hits $310, 45m iPads expected to sell in 2011
All of us at TUAW are looking forward to the Apple 4th Quarter earnings call on Monday afternoon, which we will be liveblogging right here on the site. With some of the wonderful news coming out from Wall Street and financial analysts today, our very own Mike Rose says that the earnings call should "have a mariachi band and a fire-eater." We're expecting it will be quite entertaining. First, we've been watching the share price of AAPL, which is flirting with $310 today. But there's even better news from analyst Brian White with Ticonderoga Securities: Apple could sell as many as 45 million iPads in 2011. White's research note to clients was covered by eWeek, and he talked to suppliers this week in Taiwan and China who support unit sales of 45 million of Apple's tablets. Coupled with Apple's announcements of aggressive retail expansion of sales of the device at Target, Wal-Mart, Sam's Club, Verizon, and AT&T, he expects the iPad to be one of the most coveted gifts for the 2010 holiday season, which should make the Apple execs on Monday happy enough to dance around a sombrero. Be sure to join us on Monday, October 18th at 5 PM EDT for our liveblog of the earnings call. [via MacObserver]
Boom! AAPL share price over $300 for the first time today
If the wizards of Cupertino take note of such milestones, there are probably bottles of champagne being uncorked this morning. Apple's stock price has been hovering above $300 per share since the market opened, marking yet another all-time high for the consumer electronics company. While nobody knows for sure if AAPL will close above $300 per share this afternoon, it's nice to see another record being toppled. Apple will report Q4 financial results on Monday, October 18th, and TUAW will be liveblogging the earnings call. Be sure to join us on Monday for what should prove to be another indication of stellar performance for the company. Screenshot from DailyFinance
Estimates vary on number of iPads sold
In the professional guesswork that is estimating Apple's sales numbers, numbers are varying wildly about just how many iPads Apple has sold. According to Philip Elmer-DeWitt, the general consensus is that Apple has sold about 8.25 million iPads. He's gathered quarterly estimates from many sources and compiled a list. They range from 3.80 million iPads sold (issued on September 28th by Brian Marshall of Gleacher & Co.) to 6.0 million (issued on October 1st by Robert Paul Leitao of Apple Finance Board). As Philip points out, Apple sold 3.27 million iPads in the third quarter. Apple will hold its 4th quarter financial earnings conference call on October 18th, and TUAW will be live-blogging the event. Check back then to get the real numbers. [Via MacDailyNews]
Found Footage: Apple/Microsoft throwdown at Mall of America
The USA's largest shopping mall will be the setting of an epic retail battle as Microsoft opens a massive store mere yards away from an Apple Store. Your Tech Weblog, a part of Minnesota's Pioneer Press, has posted some photos of the massive store-to-be. It's directly across the hall from Apple Store Mall of America, and it's much larger. As the video above demonstrates, the store will be longer and apparently much deeper than the existing Apple Store. All is fair in love and tech retail, as blogger Julio Ojeda-Zapata points out, so may the best retailer win. Microsoft has opened four retail stores in the US so far. There are two in California, one in Colorado, and one in Arizona. This will be the first location in Minnesota. Some have accused Microsoft of copying the Apple Store's look and feel a little too closely. Check out these photos and decide for yourself.
Adidas kills $10M iAd deal
Business Insider is reporting that Adidas has dropped its plans for a $10 million iAds account. The reason? Apple's demand for near total control. Citing two unnamed inside sources, Business Insider claims that Apple rejected three consecutive proposals from Adidas. After the third rejection, the company pulled out. Intent on making the best mobile advertising experience possible, Apple oversees nearly every aspect of an advertiser's campaign, and even designs the ads. Adidas isn't the first to complain, but this story highlights the first big money pull out we've come across. In August, the Wall Street Journal reported that other potential advertisers had grown frustrated with Apple's hands-on approach. At that time, only four of the 17 partners revealed at the program's start -- Unilever PLC, J.C. Penny, Disney, and Nissan Co. -- had launched ads. Personally, I've only seen one ad for the Nissan Leaf. We think John Gruber's advice for potential advertisers is best: Get used to it. [Via AppleInsider]
Tim Cook rumors affect Apple, HP stock
Late yesterday morning, a rumor hit the the Internet suggesting that Apple's COO Tim Cook was going to leave the company to become HP's CEO. As a result, Apple's stock took a dip while HP's showed a sudden spike. In morning trading, Apple's stock fell nearly US$17 (or 5%), while HP's rose by more than $0.40 (over 1%). Clearly, investors like Tim Cook, and they saw his rumored departure as detrimental to Apple and a win for HP. Fortunately for Cupertino, it's not true. Cook quickly denied the rumor, saying that he "...loves Apple" and is not going to HP. In January of this year, there was a rumor that Cook would become the CEO of GM, which also turned out to be false. You'll remember that Cook took over as interim CEO during Steve Jobs' medical leave of absence in early 2009. The company successfully released several new products with Cook at the top, and many believe that he's in the running to eventually take over for Jobs. [Via The Mac Observer]
