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AAPL Bucking The Rising Tide
The markets are up despite Moody's extensive global bank downgrade. Perhaps it's the full moon. Shares of AAPL are sinking after a resilient morning. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation in the fall; iPad adoption; market share growth of the Mac business lines; the introduction of the anticipated Apple TV set and related products; and evolution of platforms such as Siri, iAd and iBooks. Shares of trade at 9.1x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
The iPhone 5 Will Crush Samsung, Says Apple's Biggest Manufacturing Partner (BGR)
Foxconn CEO Terry Gou took a shot at Samsung, Apple’s closest smartphone competitor. According to The China Times, the chief executive has made it a lifetime goal to defeat Samsung. Gou urged consumers to wait for the launch Apple’s iPhone 5 before purchasing a smartphone because, he claims Apple's next-generation handset will put Samsung’s flagship Galaxy S III smartphone to shame. Why is he talking about this?
If You Think Apple Competes With Android, You're Wrong (ZDNet)
Does Apple really compete with the Android market? No. Apple operates in a vacuum. Apple’s designers aren’t thinking about whether an Android phone has this or that extra battery-consuming port or another useless feature, they’re focused on building a product that people want and will pay a lot of money for. Apple has never done things like other tech companies. Android device designers and manufacturers are the ones competing for market share and consumer visibility, not Apple.
Siri Eyes-Free Integration Coming To GM Cars (GM Authority)
The GM Authority has learned that The General will soon introduce Siri eyes-free integration in its vehicles and the first ones to get the integration will be the Chevrolet Spark and Sonic. While the automaker’s media representatives didn’t provide specific timing details, expect an announcement within the next 12 months. Siri eyes-free falls well within GM’s strategy of allowing the smartphone to carry out the functionality while allowing the user to access using the vehicle’s natural interfaces. Oh, and keep their eyes on the road.
Thanks To Apple, Microsoft Is Doomed In Mobile (PixoBebo)
According to Kate MacKenzie at PixoBebo, the war isn’t over, but the major battles have been fought, the handwriting is on the wall, the obituaries are being written. When it comes to mobile computing, Apple is crushing Microsoft to death. Microsoft was caught flat footed and has yet to recover (although this week it staged its reemergence). And when it comes to mobile computing, Apple owns the lion’s share of revenue and profits. No other manufacturer is close, and Microsoft is far, far down the list.
App Downloads Triple In China, But No One Pays For Them (PC World)
Downloads from China on Apple's App Store have tripled from a year ago, but developers in the country must continue to look overseas to generate revenues, because of the prevalence of free apps. As of May, China had the second highest number of iOS app downloads in the world, right behind the U.S. But the country ranks eighth in total revenues generated from iOS downloads. This means every iOS app download in China generates about $0.03 when comparing gross revenue against total downloads. In comparison, an iOS app download in the U.S. generates $0.28.
Apple Spending An Additional $225 Million Per Year On Its Retail Employees (Business Insider)
Apple is planning to give every one of its retail employees a $4 per hour raise next month. As of March, Apple had 27,350 retail employees in the U.S., the majority of whom work full time. If we assume that each of those employees works 40 hours a week, this raise will cost Apple as much as ~$227.5 million extra per year. That's pocket change for a company with more than $110 billion in cash and investments, but it represents a symbolic change for a company that has long been obsessed with boosting its profit margins.
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