News from category ‘Financial’

The New York Times published an article by Nick Wingfield where Apple’s growth in enterprise sector of the market was revealed, noting that the current Apple’s CEO Tim Cook is "more at ease" meeting with enterprise customers, while Jobs disliked working with businesses.

"While corporate technology buyers say Apple does not try to hide the fact that consumers are still its top priority, they note that the company has gotten easier to work with in recent years, adding features to its devices that make them more palatable to business," author Nick Wingfield wrote.

Under Jobs guidance corporate customers were often rubbed the wrong way. Tim Cook, even before being appointed Apple’s CEO, was said to engage in more communication with the company's enterprise clients.

"(Cook) met more frequently with corporate customers and seemed to appreciate their needs, even if he did not deviate from Mr. Jobs's views about making consumers the priority when making Apple products," the report said.

Apple's new success in the enterprise belongs largely to the iPhone and iPad. According to the recent reports, 93 percent of Fortune 500 companies are deploying or testing the iPhone, while 90 percent are deploying or testing the iPad. Macs also have found its place in enterprises. Moreover, as it was found out, Mac business users are more productive than their PC counterparts.

Analyst Brian Marshall with International Strategy & Investment Group claims that apple may finally pay its shareholders dividends, despite the company’s long resistance. Most investors do not believe Apple will initiate a dividend policy in 2012, but if the company will, it may gain an additional $4 billion in investments.

At the moment the current Apple’s CEO Tim Cook is reorganizing the company, so he may probably make an effort to optimize capital structure and start paying dividends Apple’s shareholders. Brian Marshall believes that Apple could "easily" implement a dividend yield of 250 base points, amounting to about $2.40 per quarter.

Apple’s previous CEO, Steve Jobs, didn’t support the idea of dividend distribution and preferred to invest in strategic opportunities such as last year purchase of Siri (Apple paid about $200 million).

"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of," the late Apple CEO said in 2010. "We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."

According to the results of worldwide mobile phone sales for the third quarter of 2011, released yesterday by the research firm Gartner, Apple's share of the total mobile phone market came in at 3.9% for the quarter, down from 4.6% in the previous quarter. However, Apple still takes fourth place behind Nokia, Samsung, and LG.

Apple shipped 17 million iPhones, an annual increase of 21 percent, but down nearly 3 million units from the second quarter of 2011 because of Apple's new device announcement in October. Gartner believes Apple will bounce back in the fourth quarter because of its strongest ever preorders for the iPhone 4S in the first weekend after its announcement. Markets such as Brazil, Mexico, Russia and China are becoming more important to Apple, representing 16 percent of overall sales and showing that the iPhone has a place in emerging markets, especially now that the 3GS and 4 have received price cuts.

iOS share slipped from an 18.2% in the second quarter to 15.0% in the third quarter. Android and Nokia with its soon-to-be-defunct Symbian platform are now leaders of the market. During the quarter, Android’s share increased by 52.5%, more than doubling year-over-year.

But Android dominates the worldwide smartphone market by units while Apple by profit. Some researches show that Apple now takes more than a half of the industry's profits.

Research firm Gartner recently released its estimates of PC sales in Western Europe for the third quarter of 2011. Despite the overall decline of 11.4% for the market, Apple’s sales in Western Europe were up 19.6% year-over-year. In mobile PC market Apple showed the most significant performance of 28%, comparing to the last year performance.

Gartner especially paid attention to the United Kingdom, France, and Germany, noting that in the UK Apple became one of five top vendors. Apple’s sales here increased up to 21.8% year-over-year. So now the company takes the fourth place in the United Kingdom with 7.8% of the market. Apple’s rival Samsung goes slightly behind with 7.3% of the market, despite the fact that Samsung’s growth there was 39%.

As for the U.S. PC market, Apple took 12.9% for the third quarter, demonstration significant increase in sales both quarter-over-quarter and year-over-year.

According to a new research carried out by Piper Jaffray analyst Gene Munster, Apple’s October Mac sales in the United States were up 19% year-over-year. That means that the company could reach analysts’ expectations and sell 5.1-5.3 million units for the full quarter.

Analyst Gene Munster with Piper Jaffray shared the latest domestic sales data from the NPD Group on Monday, which showed Mac sales up 19 percent year over year in the month of October. As sales continue to pick up leading up to Christmas, he sees Apple selling between 5.1 million and 5.3 million Macs during the December quarter.

Those numbers would represent year over year growth of between 23 percent and 28 percent. Consensus on Wall Street has called for Apple to report sales of about 5.2 million Macs during the quarter.

Last quarter Apple managed to sell 4.89 million Macs. These very numbers spurred analysts to push their Mac estimates to over 5 million.

Unfortunately, the iPod shipments in the United States are continuing to decrease. In October the iPod sales were down about 18% year-over-year. That might be connected with the fact that more and more consumers prefer to use smartphones for portable music needs rather than music players. Nevertheless such decline is smaller when it was expected. Analysts predicted a 20% drop for this quarter. That is why Munster suggests that Apple may sell approximately 16 million music players in for the full quarter.

Mike Chambers, Principal Product Manager at Adobe, blames Apple of halting development of the Flash Player for mobile devices, because Apple refused to support Flash on its iOS devices. As he clarified, Adobe will support existing versions of Flash Player for mobile devices, and concentrate on HTML 5 technology.

"Considering how politically charged the issue has been, the decision to stop development of the Flash Player for Mobile Browsers was not an easy decision. However, at the end of the day, there were a number of items that made it clear that putting resources towards its continued development would not be the best use of resources," he wrote.

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Flurry, mobile analytics firm, reports that portable gaming has seen a continuous shift from dedicated gaming devices to smartphones and other multifunctional devices.

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The newest Apple’s iPhone 4S became available for preorders in Hong Kong last Friday and sold out almost immediately. As Brian White, analysts at Ticonderoga Securities, said, iPhone 4S preorders sold out in their first 10 minutes of availability.

"In our view, this is a very positive sign for iPhone 4S demand in Greater China has Hong Kong represents the first entry of the new smartphone in the rapidly growing region, and we expect the 4S to reach Mainland China in December," White said in a note to investors on Monday.

"We believe this rapid sell out will rest concerns surrounding the uptake of the iPhone 4S in the Greater China region that were driven by the limited language capability of Siri, which did not launch in Mandarin or Cantonese."

Although, the current version of Siri understands only English, French and German, Apple plans to start supporting additional languages in 2012, including Chinese, Japanese, Korean, Italian and Spanish.

A successful start of the iPhone 4S in Chine is good news for Apple. Of course, the nation of over a billion people is an important part of Apple’s international policy and growth.

Despite the fact that iPhone 4 was launched last month, it seems that consumer Interest in the newest Apple’s smartphone is still increasing. Chris Whitmore with Deutsche Bank polled about 30 Apple retail stores and found out that between 85 percent and 90 percent of stores polled are experiencing stock-outs of the iPhone 4S.

"Apple employees are directing customers to make an online appointment (first come first serve) for next day pickup at nearby Apple retail stores as stocks appear to be refreshed daily at most locations," Whitmore said.

In-store Apple representatives advice customers to order the iPhone 4S on Apple's website between 9 p.m. and 12 p.m. Now most number of iPhone 4S units is sold via reservation, leaving a very little stock for customers who want to buy the device at a store.

Whitmore believes strong demand for the iPhone 4S both in America and abroad shows that supply remains the only factor in determining how many handsets Apple will sell this quarter. He has forecast sales of 28 million iPhones during the holidays, but admitted that number appears "increasingly conservative."

Today comScore published the results of its latest research of mobile phone usage in the U.S., noting that Apple has surpassed 10% share of mobile phone market in U.S. As before, Apple again outstripped all of the largest phone manufacturers in growth over the third quarter, increasing its share by 1.3% to reach 10.2% of the mobile phone market in U.S.

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Apple awarded 1 million stock shares to its seven executives rewarding them for hard work over the fiscal year when the company for the first time earned more than $100 billion.

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Despite Apple has seen sequential decrease in iPhone sales in the third quarter of 2011 as customers waited for the iPhone 4S launch, the company again raked in more than half of the profits produced by the largest mobile phone manufacturers over the quarter, according to a research report (via Forbes) by analyst T. Michael Walkley.

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The Bookseller reports that Steve Jobs’ authorized biography by Walter Isaacson easily became the most popular book in the States and United Kingdom during its first week of availability. For example, in the United States the book sold 379,000 copies.

Despite being on sale for just six days in the US, Steve Jobs: The Exclusive Biography is already the 18th bestselling book of the year. It sits one place ahead of John Grisham's The Confession (Dell) and one place behind Rick Riordan's The Son of Neptune (Hyperion) in the year-to-date BookScan US bestseller list.

As we reported, Amazon had previously announced that the book was poised to become the best-selling book of 2011 despite a release late in the year. And we will probably be able to watch a film adaptation of the autobiography soon, because Sony Pictures has already acquired the movie rights to the book.

The Next Web reported that South Korea had removed a ban blocking App Store games a week before the iPhone 4S launch. Korea opened up the local App Store earlier today. The Store had been closed for about two years. Of course, such ban cannot but affect Korean game developers. The selection of available games in the Korean App Store is limited for now, but it is expected to improve quickly.

The iPhone 4S is believed to face with tough competition in the region from the local giant Samsung, especially from the latest Galaxy Nexus. But Apple will obviously achieve success, predicting huge demand for their newest smartphone. Moreover, worldwide sales of the iPhone 4S are breaking all records. In the first three days of availability Apple sold four million units.

Nevertheless, Samsung intends to target Apple with new patent suits after iPhone 4S launch in Korea, even despite the fact that all their previous attempts were unsuccessful.

Last week, Apple released its annual financial report for fiscal 2011, revealing some interesting facts. Moreover, the report includes some Apple's planned capital expenditures for fiscal 2012

The Company’s capital expenditures were $4.6 billion during 2011, consisting of approximately $614 million for retail store facilities and $4.0 billion for other capital expenditures, including product tooling and manufacturing process equipment, real estate for the future development of the Company’s second corporate campus, and other corporate facilities and infrastructure.

The Company anticipates utilizing approximately $8.0 billion for capital expenditures during 2012, including approximately $900 million for retail store facilities and approximately $7.1 billion for product tooling and manufacturing process equipment, and corporate facilities and infrastructure, including information systems hardware, software and enhancements.

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