Chillin' out till it needs to be funded
New targets by brokerages returned scores up $100 at JP Morgan and even $960 by end 2013 yesterday. At $530 Apple hit the halfway rest to a climb for $1Tln market Cap already 30% of the NASDAQ 100 index. This week the scrip has made three gap up openings in four days.
The new iPad does drag the company’s gross Margin compared to the iPhone but the $100 off on iPad 2 means stratospheric sales expectations that the company will have no trouble meeting and adding $129 from each iPad to profits. The iPad3 currently is a $329 in costs on the $629 priced 16GB 4G model with Retina Display costing $70(Engadget) and $21 for the 4G Radio, up from $50 and $10 for 3G Radio in iPad2,. Profits on the iPhone are still nearly $300 for every piece sold and the margin from iPad2 to iPad3 is down from 56% to 51%. IPhone sold 37 mln units up 130% in Q4 2011 ( Apple’s Q1)
According to Business week at least Four analysts including Kate Huberty at Morgan Stanley raised targets by yesterday to more than $700
Apart from Foxconn, partners like Sumitomo and Cathay (shipping) , Sumitomo also help by the recovery in Toyota sales/ Qualcomm, Broadcom and Samsung remain key suppliers and the Retina Display would also come to Samsung devices next is it?
Apple also won against Samsung in courts in Netherlands today against a plea for a ban on the iPad and the iPhone fora 3G Wireless patent(Hague District court)
Tablet Sales from iPad at a15.5 mln rate in December (Apple’s Q1) and kindle at 4.7 mln in the same quarter are expected to grow further in the four quarters now driving the frenzy to at least 50% of the PC market by end 2013 ( according to our own estimates) that means a 30% rise on the December run rate just for the iPad and Kindle with the iPad ending up with 80 mln units sold in the year and Kindle more than 25 mln units. IDC hit the same number yesterday in their research/extrapolation from the 60 mln run rate in Q4 but samsung is a distinct #2 in their iPad
PC Sales could sell higher from 200 mln units excl Tablets last year despite the introduction of Windows 8 but unlikely to catch up as HP trades 41% down int he first three months of the year, while Apple is up 46% till yesterday
iMacs that make up a less than 10% share of PCs sell at a lower Direct margin ( GM) of around 40% ( Apple financials till 2010) while the Kindle sells at just a 20% margin ( Direct / Gross Margin is calculated just on Cost of Goods Sold excl SGA expenses , Depreciation and other company wide costs) and Android devices nearer 10%
Econo-update: Philly Fed came in much higher than expected at 12.5