Apple's Media Tablet Will Cause the Stock to Rocket

To get an idea of the kind of impact Apple’s (AAPL) Media Tablet might have on Apple stock, let’s review the iPhone precedent. 2007 was a great year to be an Apple investor as the stock rose 31% prior to the unveiling of the iPhone, then it went up another 32% before the iPhone actually went on sale, and then it surged 62% between June 9th and Christmas day as iPhone sales surpassed expectations. Can lightning strike twice for investors? It happens all the time.

The coming Media Tablet may very well have the same positive impact on Apple stock in 2009 as the iPhone did in 2007. Apple is on the brink of adding another leg to its innovation empire as they prepare to introduce us to an entirely new product category. Manufacturing reports suggest that the Media Tablet will have a 10 inch touchscreen that could be even thinner than the iPhone. It will be the ultimate newspaper/magazine replacement catering to those Internet users looking for the perfect portable reading device. Wireless connectivity will further expand the dominance of Apple’s App Store as games, books, education and news software will finally function on an ideal piece of hardware. The Media Tablet will be the first computer with the capability to utilize the App Store platform that has already generated over 1 billion downloads since it was launched in July 2008.

According to the WSJ, Steve Jobs has been working on this Media Tablet from home during his leave of absence. Don’t be surprised to see Mr. Jobs back on stage to unveil the product when he is scheduled to return to Apple at the end of June. Also don’t be surprised to see him perform a demo of iChat on the new device. Apple has held off incorporating iChat onto the iPhone for reasons unknown, perhaps the Media Tablet will take this mode of communication to a new level of popularity.

Many have been wondering what Apple and Verizon (VZ) have been discussing in their confirmed meetings over the last six months; consensus speculation anticipates that Verizon might be on the verge of offering the iPhone as soon as AT&T’s (T) exclusivity deal expires. This doesn’t seem likely. Apple has been consistent in saying that it doesn’t want to build an iPhone for the limited Verizon network and I highly doubt the company will change its mind. It makes more sense to speculate that these talks are negotiations regarding the Media Tablet. To have a wireless internet connection available through both AT&T and Verizon would allow tablet distribution to far exceed the iPhone’s. Apple's product probably will require that the same phone number be used for your cell phone as well as the tablet, the tablet service will simply be added to your existing cellular contract. Service similar to the iPhone may also be part of the negotiations, thereby allowing Apple to offer low prices that no one can compete with.

Beyond the Media Tablet, Apple stock also responds to the health of the economy. For the last 18 months the economic data points have been getting worse, which has brought down Apple along with the rest of the market. However, now that the threat of bank failure has been taken off the table and economic data points are beginning to improve, Apple is poised to reap the benefits of its stellar performance throughout the recession. Since the recession began, Apple has doubled its cash on the balance sheet to $30 billion and it has substantially increased its market share among computers and smart phones despite the Steve Jobs health scare and despite the weak global tech demand. With such problems now in the rearview mirror and President Obama pushing his agenda to reignite the spirit of American innovation, it is clear that the economic environment is fertile to invest in Apple once again.

The iPhone stock trend shows us that the new Media Tablet could take this stock to $267 by December 25, 2009. This catalyst, along with the other catalysts in Apple’s future, could propel this stock towards $300 a share. These other catalysts include:

1. Steve Jobs officially returning to the company at the end of June.
2. The release of a new iPhone.
3. The iPhone launch in China.
4. Improved consumer confidence for the 2009 holiday shopping season.

Because of these recent developments, Apple is a better investment at $125 on May 1st than it was when it dipped into the $70s in January. True, this is a second half of the year stock and this year you might see some fireworks coming from Apple. I will diversify my position in Apple but my favorite play is the January 2010 Apple $200 calls which you can pick up for 1.55. The tech revolution is just getting started and Apple is the unquestioned leader.

Disclosure: Long AAPL.

Comments

[Sam Stew:]

Dear Sirs:

I am wondering why somebody does
not create a band-aid fix, add-on
invention of a new, newspaper and
magazine standard, USB smart
card product (key chain format),
for e-newspaper distribution,
using [standard family keys/
issue]. This will support:

1). 1 [unique public key pair/
subscriber].
2). remote download only to
authorized customers of 1
[family key encrypted media/
issue].
3). spot encrypted Web readers.
4). blocking out of Google and
Yahoo spiders or robot,
Web crawlers.
5). e-newspaper clip-outs, stored
inside the USB smart card.
6). electronic 'paid content,' with
archival storage and sharing
only by paid subcribers.

Sincerely,

Sam Stew
[e-mail]

Apr 29 06:08 AM

[Buffeted:]

The more hype generated about the release of such a tablet, if there is one, the more inclination there will be to buy the rumor and sell the news.

Apr 29 07:42 AM

[Techtrader10:]

No matter what Apple comes out with, there is a loud cry from the people expecting to be rich holding Apple stock, "the stock will go up". I love it, as I have been long and/or short Apple stock over the past two years and enjoyed trading it. However I feel a little sad for the people that have hoped they could just buy and hold it. Unfortunately, Apple stock is not like a mutual fund. You must put a little time and effort into when to buy, when to hold, and especially when to sell it. Be careful going into the next quarterly numbers report. The stock price usually goes up about two weeks ahead of the report, it has become very predictable. When something becomes too predictable, traders like to set up traps. Good luck trading everyone!

Apr 29 09:30 AM

[iJah420:]

AAPL is no longer for traders. AAPL is an investment of and for the future. AAPL is being cautious with their cash and @ the right time will offer a dividend to their investors. AAPL has learned much from it's past mistakes and they are making every effort not to repeat those mistakes. I have been watching AAPL LONG before Michael Dell's famous quote.....

ORLANDO, Florida--When it comes to the state of Apple Computer, everyone has an opinion.

And at the Gartner Symposium and ITxpo97 here today, the CEO of competitor Dell Computer added his voice to the chorus when asked what could be done to fix the Mac maker. His solution was a drastic one.

"What would I do? I'd shut it down and give the money back to the shareholders," Michael Dell said before a crowd of several thousand IT executives.

Dell's comments follow Steve Jobs's keynote address at the Seybold trade show last week in San Francisco, where the Apple cofounder seemed to win over attendees with his explanation of why he had made certain key decisions, killing the clone market and aligning more closely with Microsoft. The Seybold crowd--as well as some Apple employees--also seemed to be buoyed by the increasing role Jobs has taken on at the company as board member and interim CEO.

But others, like Dell, appear to think that Jobs's expanded role isn't helping. There is some concern that Apple will have a hard time recruiting a top-notch CEO because of Jobs's presence.

Others fear that Apple could end up completely in Microsoft's camp by deciding to use the NT operating system on its servers. Apple is reportedly planning to come out with network computers that would require high-end servers to function.

While many industry executives have offered opinions on how to right Apple's ship, no high-level executive has made as blatant a comment as Dell's.

For the record Mr. DELL.... I am forced use your computer on a daily basis and know why your company is in the shape it in right now. Your BUDDY Steve over @ MSFT ain't helpin' you any either.

APPL will be @ $300 in the not so near future. AAPL Long.

Apr 29 09:40 AM

[Camden:]

Techtrader10,
Re:"When something becomes too predictable, traders like to set up traps."
How does a trader set a trap?


On Apr 29 09:30 AM Techtrader10 wrote:

> No matter what Apple comes out with, there is a loud cry from the
> people expecting to be rich holding Apple stock, "the stock will
> go up". I love it, as I have been long and/or short Apple stock
> over the past two years and enjoyed trading it. However I feel a
> little sad for the people that have hoped they could just buy and
> hold it. Unfortunately, Apple stock is not like a mutual fund.
> You must put a little time and effort into when to buy, when to hold,
> and especially when to sell it. Be careful going into the next quarterly
> numbers report. The stock price usually goes up about two weeks
> ahead of the report, it has become very predictable. When something
> becomes too predictable, traders like to set up traps. Good luck
> trading everyone!

Apr 29 10:45 AM

[Techtrader10:]

iJah420, you make my point with your last comment "APPL will be @ $300 in the not so near future. AAPL Long." And don't hold your breath waiting for Apple to pay a dividend.

Apr 29 10:50 AM

[iJah420:]

Techtrader10

True...

However,

APPL is no longer as predictable as it once was for the trader.
This company should now be traded, invested in, bought, sold, shorted etc.. on it's FUNDAMENTALS... NOT via RUMORS & SPECULATION.

As far as the dividend it will happen @ some point. When? Only Apple knows the answer to that question.... as it should be.

Apr 29 11:08 AM

[Techtrader10:]

Good Morning Camden, The way a trap is set is easy to understand. Take a look at the closing price of Apple stock yesterday (123.99), now look at the opening price today (124.85) up more than $1.86 on no news and no unusual volume. The traders (also called market makers) decided to open it higher. They buy calls and stock over a period of time and run up the price of the stock into the options expiration which is the week prior to the quarterly announcement. The run up takes about a 2 week period of time. As momentum builds and the price of the stock moves up, the market makers will sell off the call options and buy put options for little money. The company announces the numbers, the next morning the market makers open the stock lower and again lower each day. They made money on the way up and now they make money lowering the price of the stock as the crowd panics and sells off their stock. Hope this help you understand the process.

Apr 29 11:13 AM

[Camden:]

Techtrader10,
Re: "However I feel a little sad for the people that have hoped they could just buy and hold it. Unfortunately, Apple stock is not like a mutual fund. You must put a little time and effort into when to buy, when to hold, and especially when to sell it."

$1000 put into Apple 5 years ago is now worth more than $7700. You feel a little sad for those that buy and hold??? When did you start investing?




On Apr 29 09:30 AM Techtrader10 wrote:

> No matter what Apple comes out with, there is a loud cry from the
> people expecting to be rich holding Apple stock, "the stock will
> go up". I love it, as I have been long and/or short Apple stock
> over the past two years and enjoyed trading it. However I feel a
> little sad for the people that have hoped they could just buy and
> hold it. Unfortunately, Apple stock is not like a mutual fund.
> You must put a little time and effort into when to buy, when to hold,
> and especially when to sell it. Be careful going into the next quarterly
> numbers report. The stock price usually goes up about two weeks
> ahead of the report, it has become very predictable. When something
> becomes too predictable, traders like to set up traps. Good luck
> trading everyone!

Apr 29 11:47 AM

[Anthony B:]

I'm short the $125 July put. Good idea with the Jan '10 call for $1.55.

The days of Apple's stock price appreciating 700% over 5 years are over due to the size of the market cap (unless heli ben really gets inflation going and we get to $1000 ipods). I predict that AAPL will find itself in a trading range around 200 in 2010.

Apr 29 12:39 PM

[Techtrader10:]

Camden please, woulda, coulda, shoulda...if you put $1,000 in Apple stock in Dec of '07 it would be worth $625 today. I started trading back in the early 1970's and trade full time in 1990. I can give you a list of people that bought the drug stocks in the '80s, dot coms in the '90s and rode them all the way up and now hold worthless stock. How about the banks, the housing stocks, even most of the brokerage stocks all once good buys now near worthless. If you look at the change in Apple's product line (from quality computers to fad toys, and the changing economy I think you are looking at a company that has peaked out and is on a slow slide down just like the drug companies, dot-com, and bank stocks.

Apr 29 12:39 PM

[iJah420:]

Techtrader10,

bought 420 @ $40 sold 210 @ $190.00...
bought back 210 @ $93.00..now I'm going to enjoy the ride.

Apr 29 12:41 PM

[Michael Comeau:]

It's a bit unfair to attribute Apple's stock performance in 2007 purely to the iPhone - the massive unit growth in Macs was a much bigger factor.

The iPhone launch was far from perfect as the company had to cut price extremely quickly - so you can't call it the driver of the stock.

Apr 29 12:54 PM

[iJah420:]

AAPL is in a much MUCH better position now, than @ $40.

I was a VAR in 1990-1991. Windows XP NOW is where Apple's OS 9.21 was......THEN.. Vista? need I say more.. Windows 7? UM yeah OK! take a good look under the hood people... Slick Willy is @ work once again. I'm a very tech savvy power user. MSFT just do't have it anymore people.... the 90's are OVER.

I've seen the ups and downs of AAPL.... this time is MUCH different.

I work in a mixed environment and I must say MSFT is most vulnerable @ this point in it's short history.

Why? 2 words.... App Store

Apr 29 12:56 PM

[Techtrader10:]

iJah420, nice trade. I might be wrong, but I'm inclined to think the price of Apple has topped out here, so I've started to buy puts and short some stock here. You might want to consider taking your profits and come back again later, as this has been a big move in a short period of time. I now prefer to trade the short side of Apple, as I am not as comfortable with the fundamentals as I was at one time. Another thing to look at is the price to earnings multiple has been shrinking for some time. Either way you go, good luck.

Apr 29 01:46 PM

[Techtrader10:]

I agree with you, the 2007 move was absolutely because of the computers, and the excitement of the phone. At that time the price to earnings multiple was over 40. But that is my point, the computer sales are in decline (price is a major factor) and the earnings are being supported by the iPod and iPhone which are at the whim of "fashion".


On Apr 29 12:54 PM Michael Comeau wrote:

> It's a bit unfair to attribute Apple's stock performance in 2007
> purely to the iPhone - the massive unit growth in Macs was a much
> bigger factor.
>
> The iPhone launch was far from perfect as the company had to cut
> price extremely quickly - so you can't call it the driver of the
> stock.

Apr 29 01:52 PM

[Anthony B:]

It's a heck of a fad then:
"Apple's Manhattan cube store, a place that sells iPods, is the 5th most photographed place in NYC—just in front of the Statue of Liberty..."
gizmodo.com/5232419/35...

Apr 29 02:05 PM

[Techtrader10:]

Where in the world did you come up with that statistic???? And how does it affect the price of the stock?


On Apr 29 02:05 PM Anthony B wrote:

> It's a heck of a fad then:
> "Apple's Manhattan cube store, a place that sells iPods, is the 5th
> most photographed place in NYC—just in front of the Statue of Liberty..."
>
> gizmodo.com/5232419/35...

Apr 29 02:11 PM

[iJah420:]

The 3% decline in Mac sales is based on last years quarter. Please! take a look @ other PC box pushers.... well? seems to me Apple is the envy of said sector.

For one, if you have not noticed folks, our economy has been anything but healthy. Apple's numbers are solid right? RIGHT!... and to defend my position and to refresh peoples short term memories Apple is debt free, has $30B in the bank, has a world class OS (Certified UNIX), has just hired a brain child from AMD, not to mention 1 billion application downloads in 9 months, has control over both software and hardware decisions.....shall I keep going? This company LEADS ok. AAPL @ $125 even with the p/e ratio is a good buy. AAPL LONG.

Facts are Facts folks... The TRUTH will set you free..... MSFT is anything but....... keep nay saying all you want..... only time will tell....I was right before my gut tells me I will be right again.

ps. those who bash AAPL from my experience have never even used one.....what does that tell you?

Apr 29 02:14 PM

[Roger Knights:]

Jason Schwarz wrote: "The coming Media Tablet may very well have the same positive impact on Apple stock in 2009 as the iPhone did in 2007. Apple is on the brink of adding another leg to its innovation empire as they prepare to introduce us to an entirely new product category. Manufacturing reports suggest that the Media Tablet will have a 10 inch touchscreen that could be even thinner than the iPhone. It will be the ultimate newspaper/magazine replacement catering to those Internet users looking for the perfect portable reading device. Wireless connectivity will further expand the dominance of Apple’s App Store as games, books, education and news software will finally function on an ideal piece of hardware."

If so, its impact will be explosive. That's why they should call it the "DynaMac." (Plus it’s a hat-tip to Alan Kay's visionary DynaBook.)

"The iPhone stock trend shows us that the new Media Tablet could take this stock to $267 by December 25, 2009. ... Apple is a better investment at $125 on May 1st than it was when it dipped into the $70s in January."

I think AAPL has a tremendous upside over the next five years. But I think $200-225 by year-end is more realistic. That's because I think that some of the upside from the DynaMac is already priced into the stock. I.e., I think that advance-word of the DynaMac's fantastic features must have leaked out and powered AAPL's recent 50%+ price rise. Nothing else can explain it. (Incidentally, this steep price rise--in the face of conventional-wisdom bearishness on the stock--bolsters your implication that the DynaMac will be insanely great, because its specs must have impressed early-bird buyers considerably.)

iJah wrote:
"I'm a very tech savvy power user. MSFT just don't have it anymore people.... the 90's are OVER. I've seen the ups and downs of AAPL.... this time is MUCH different."

Very good--that's exactly what I think. There's a strong technical basis behind Apple than many people don't appreciate. It's not just the flash and filigree of its user interface.

Apr 29 02:24 PM

[Techtrader10:]

I'd say you just came back from lunch and have a buzz on!


On Apr 29 02:14 PM iJah420 wrote:

> The 3% decline in Mac sales is based on last years quarter. Please!
> take a look @ other PC box pushers.... well? seems to me Apple is
> the envy of said sector.
>
> For one, if you have not noticed folks, our economy has been anything
> but healthy. Apple's numbers are solid right? RIGHT!... and to defend
> my position and to refresh peoples short term memories Apple is debt
> free, has $30B in the bank, has a world class OS (Certified UNIX),
> has just hired a brain child from AMD, not to mention 1 billion application
> downloads in 9 months, has control over both software and hardware
> decisions.....shall I keep going? This company LEADS ok. AAPL @ $125
> even with the p/e ratio is a good buy. AAPL LONG.
>
> Facts are Facts folks... The TRUTH will set you free..... MSFT is
> anything but....... keep nay saying all you want..... only time will
> tell....I was right before my gut tells me I will be right again.
>
>
> ps. those who bash AAPL from my experience have never even used one.....what
> does that tell you?

Apr 29 02:28 PM

[RK:]

In my office, I am called the apple fanboy as I have 2 iphones and 3 macs. But I think I am quite sober when it comes to evaluating Apple business prospects. The pluses for Apple are: continued growth of its iphone/itouch and mobile app business. The market is still very young. The next 5 years will tell us how big this market can be. Apple is likely to have a competitor to Kindle in 12 months whether that comes out in June is open to question. But a device for media and entertainment bigger than a phone and smaller than a laptop makes hugh sense. Apple can hit a home run here --- or it may not.

The negative is the computer line of business. Computers are commodities. The application is moving to the cloud. Yes, Mac computers are nice (that is why I have them) but the cloud makes computers commodity items. I do not see mac as key growth driver even if macs takes market share out of Windows. The market just is not going to grow much.

All said, I would rather own Apple than Microsoft. I also own Amazon, Google, and ATT to hedge my bets. They are my plays on the cloud.

Apr 29 02:28 PM

[iJah420:]

RK..

agreed..... agree more so when it comes to "Desktop Macs" as opposed to laptops. However, like RK ponders on the iWhatever they might name it ..... Apple has been "Closely Observing" the net book sector.

Once again need I refresh everyone's short term memories.... Apple was not the first o come to market with a MP3 player.....that was in 2001 right? Right!... so IF... and from where I sit its not a BIG if it is When Apple comes to market with it's iWhatever.... it will not be a home run... it will be a Grand Slam Home Run..

ps. the iMac is still the engineering envy of the pc sector ,don't kid yourselves.

Apr 29 02:41 PM

[winindthedust:]

Hi Techtrader10,

I respected your first comment, very reasonable. As iJah420 pointed out, however, no need to be condescending and lecture on trading risks and fundamentals. It is possible, to be both smart about trading, & passionate for a particular company. Apple is such a company that inspires this.

It's in your best interests to support your puts with negative warnings... however, I believe, fundamentally you have misgauged the market and Apple's role in it. I believe this is because you don't really understand Apple as a company or why it even exists.... go to an Apple store, buy and use one of their products, get in the mix... I think your attitude will change a bit.

Some points to consider:

Apple has been a growth company since 2000 when it was $8, zero debt, growing cash, making high margin products that everyone wants and is satisfied with.

Now, in 2009, in the midst of a recession/depression, with all sorts of unknowns, the company itself continues to grow, beat earnings, surprise analysts, and continue to be zero debt, grow cash, making high margin products that everyone wants (and buy) and is satisfied with.

What is the most costly part of the iPhone/iPod Touch? The processor, graphics chip & memory. Apple consistently protects market with it's buying power getting memory way cheaper then other. On the graphics/chip side, they bought PA Semi, and are about to introduce a SoC or System on a Chip, integrating all the components into on chip. This will boost performance, increase battery life AND drastically cut cost, thus protecting margins, and spurring sales. Since they will OWN this chip, others just won't be able to compete, relying on third parties completely.

Despite the decline in PC sales, Macs remained stable, with only a 3% decline compared to the overall market 19% decline. Keep in mind, that PC numbers were buoyed by netbooks which are very low margin, and did little to prop up profits. Netbooks are a slow death to the PC industry and Microsoft, which had to cut it's licensing to almost nothing, lest it get ousted by Linux. We will see continued strong sales of the Mac, and increase in market share. In fact, Apple has the #1 spot if you include iPhones & iPod Touch devices, which run a form of OSX... seems only fair as they are as capable as the netbook segment.

Apple's business is really about great products, and appreciating people.... this has been instilled into the Apple's DNA by Steve Jobs. Apple doesn't care about being in segments that they can't win in.... that's why they are successful.

Apple has five successful business: iPods, iPhone, Macs, iTunes/App Store, Software; looking at the whole, I would hardly say they are diminishing or in decline... quite the opposite... the old Myths about Macs are fading, and they are poised to be one of the most rapidly adopted computers of all time, thanks to the iPhone & iPod touch. OSX is a serious consumer AND business OS with great software and hardware, that is market competitive with BETTER margins then the competition.

With this earnings call, Apple broke the mold of all expectations. Typically, we could expect a sell off after earnings, not this time. We will see a steady rise in stock until the June WWDC event. After the keynote, it could go either way... if products disappoint, then a sell off, if they are incredible, don't expect to get a buy in point... this is risky, if you need the cash, sell, otherwise, again, we will see a nice rise into the holiday quarter. I would not be betting against Apple this year, that just seems to risky to me, given all of the circumstances.

Last, their are ALOT of people buying puts on Apple. These people will lose, and when they cover, the stock will continue a fast rise. All negativity has been shaken out of the stock over the last year, and people are optimistic- looking forward to the summer and the "magic" Apple has to offer. Buy on the dips and get a position into the stock on the way up.

Just look at the volume yesterday! Despite the selloff, buyers were there to scoop it up... even though the market was overall down, Apple barely budged at all. This is some nice downward resistance that can't be ignored.

Apr 29 02:50 PM

[winindthedust:]

Sorry for writing a book... bottom line: Apple will be on a steady climb to June, with a possible pullback (though short lived) and then stay on a steady track up through the summer to Jan. 2010.

Apr 29 02:56 PM

[iJah420:]

oh.. 1 more thing ...

Whatever happened to Origami??????? MSFT??? Beauller? Anyone?

When Apple does launch iWhatever.... i can hear it now.... Microsoft had the IDEA first!!!!! Apple Copied Microsoft's Origami!!! YADA YADA YADA!!!! Yeah whatever nay sayer.

Well guess what? Apple will do it better and make it easier to use.

The days of MSFT Tech Geekdom, Self Absorbed IT Superiority Days ARE OVER.... you know what I say?? THANK GOD I don't ever want to mess with another SCSI dip switch EVER!!!! and to say a blackberry Bold is a smart phone is a stretch.

Would anyone like to agree or argue with me as I state the Blackberry bold is ANYTHING BUT a hand held computer?

Apr 29 03:01 PM

[Jason Schwarz:]

I am most intrigued by RK's comment on the commoditization of computers due to the continued development of cloud computing. The Media Tablet could really explode if PC memory and size become less of a necessity. The Media Tablet could eventually become the ultimate access point to the cloud. Interesting thought.

Apr 29 03:29 PM

[reagan:]

Yea, Apple has "peaked out" whatever that means. Dream on, Techtrader.


On Apr 29 12:39 PM Techtrader10 wrote:

> Camden please, woulda, coulda, shoulda...if you put $1,000 in Apple
> stock in Dec of '07 it would be worth $625 today. I started trading
> back in the early 1970's and trade full time in 1990. I can give
> you a list of people that bought the drug stocks in the '80s, dot
> coms in the '90s and rode them all the way up and now hold worthless
> stock. How about the banks, the housing stocks, even most of the
> brokerage stocks all once good buys now near worthless. If you look
> at the change in Apple's product line (from quality computers to
> fad toys, and the changing economy I think you are looking at a company
> that has peaked out and is on a slow slide down just like the drug
> companies, dot-com, and bank stocks.

Apr 29 03:38 PM

[reagan:]

Jason, Thanks for the great article! I always enjoy reading about your optimism in this incredible company. I sure hope you are correct in your assumptions as I am a large stock holder & will remain so for a very long time. Traders can have their say but I'm a here for the long haul. I could careless about making small gains on day trading.

Apr 29 03:48 PM

[Anthony B:]

If you follow the link I posted I'm just quoting gizmodo. If you take the time to read the article, a group of researchers at Cornell geotagged 35 million photos from flickr. According to gizmodo, that result of going through all those photos found that the Apple cube store was the 5th most popular place in New York City to take a photo.

You could argue that those on flickr are more tech savvy than most, so probably have more interest in the cube store than the average tourist. However, it's still pretty darn impressive.


On Apr 29 02:11 PM Techtrader10 wrote:

> Where in the world did you come up with that statistic???? And how
> does it affect the price of the stock?

Apr 29 03:52 PM

[Anthony B:]

And in case you don't trust gizmodo and want the source:
www.cs.cornell.edu/~dph/papers/photomap-...
On page 4 of the pdf, the first table.

Apr 29 04:06 PM

[Anthony B:]

"www.cs.cornell.edu/~dph/papers/photomap-... - link didn't work trying again

Apr 29 04:07 PM

[Anthony B:]

cs.cornell.edu/~dph/pa...
from cs.cornell.edu extension is /~dph/papers/photomap-...

Apr 29 04:08 PM

[Anthony B:]

seekingalpha automatically turns w w w (without spaces) into ...
the end of the file name is photomap-w w w09.pdf
infuriating, sorry bout that.

Apr 29 04:11 PM

[Martel:]

One difference between the iPhone and Media Tablet is that the iPhone took the other manufacturers by surprise. It really did not have a competitor available immediately. Media Tablet, on the other hand, does face some tough competition already.

For example, Nokia has lowered the price of their N810 Internet Tablet to only $220. It is a feature-packed product and can e.g. run Google Android. There's an existing online sw developer community, Maemo, for N810 and it's predecessor N770. Moreover, Nokia has already promised N810 won't be last in line, so they probably have something in the pipeline already now.

While Apple's products sell like hotcakes in the U.S., worldwide the situation is a bit different. It seems that in India, for example, Nokia's N5800 touch phone trumped the launch of iPhone. In China the iPhone will probably sell well, though. My point is: the honeymoon is over, the competitors are awake. Thus it will be very difficult for Apple to repeat iPhone's success with Media Tablet. The share price might go up for other reasons, but the income stream from Media Tablet might disappoint.

But let's wait and see what they come up with.

Apr 29 07:31 PM

[brewer:]

I'm totally in agreement with iJah and Jason Swartz. Techtrader, do you work at Microsoft? Your arguments hold no water whatsoever. Seriously, you are going to lose money doing what you described. Finally I dispute you claim regarding 2007-current growth. Apple was in the $50 range perhaps a few months earlier. Compare that to just about any tech.

Apples reputation is stellar.

Apr 29 08:16 PM

[Zoltan L. K...:]

Great article. AMZN moving to the AppStore is also a sign for Apple's chances to dominate with a portable reading/media device. Another catalyst is gaming, for which the new device could a great opportunity.

Apr 30 02:17 AM

[Moon Kil Woong:]

A tablet will actually go a far way in countering their recent statements by them against making a mini PC, being that a tablet could operate pretty much as a mini PC.

I also hope they open up offering their phones with Verizon service. Their service is far superior to AT&T and should broaden it's attractiveness. Giving customers a choice is a good thing.

Apr 30 02:56 AM

[nukldrager:]

I wanna be like you when I grow up!


On Apr 29 12:41 PM iJah420 wrote:

> Techtrader10,
>
> bought 420 @ $40 sold 210 @ $190.00...
> bought back 210 @ $93.00..now I'm going to enjoy the ride.

Apr 30 07:37 AM

[raytayzmd:]

...yeah, right:

"An Apple tablet is on the way according to unreliable, totally anonymous sources..."

...of course, that was written TWO YEARS ago:

apcmag.com/an_apple_ta...

...and Jobs is working on it while he is at home?...uh, no...Mr. Jobs, sad to say, is probably at home dying...do you know what a Whipple procedure is?...basically, it is a radical procedure considered to be only palliative -- in other words, it is highly unlikely that it cured him...I wouldn't expect him to return in June.

Apr 30 10:35 AM

[waf76:]

While I'm long apple and consider myself a fanboy I simply can't envision a $200 stock price by the end of the year, even though it deservedly belongs to be there now. I'd like to see Apple break the current resistance of $125-126 and head into the $130's before we start talking about what the next leg up is.

Also, what type of margins would Apple be looking at when they introduce the tablet? If companies are losing money on netbooks, how much more profitable can the tablet be? Granted, if anyone is gonna do it right its Apple. Also, by the time its released how much of the cloud infrastructure will be in place? While the kindle is an excellent product i wouldnt want a more expensive book reader. I would want the tablet to operate as a mini laptop without storage and processing limitations.

Apr 30 02:01 PM

[Essence:]

I'm as much an Apple fan as anyone, but I remain skeptical and somewhat mystified about everyone's excitement regarding these media tablet rumors.

I can't see why I'd need one when I have a desktop, laptop and iPhone. What does the iTablet give me that the laptop and iPhone don't? The tablet will be awkward; you might as well have a real machine like the Air. The iPhone gives all the advantages of this rumored device, save a smaller screen. The size, of course, is its huge advantage.

I can see a niche place for them, ie medical and other vertical applications, but I don't see nearly as large a market as there is for Macs and iPhones/iPods.

'Course, not being a music lover, I didn't originally think the iPod would ever amount to anything either, so maybe I'm missing something...

Apr 30 11:20 PM

[Sam Stew:]

Dear Sirs:

Pls. review my blog
spot on 'USB smart
cards (key ring format),' for a
new industry standard,
'paid content'
standard for newspapers and
magazines.

Txs,

Sam Stew

May 06 02:24 AM

[econjunkie:]

JUCIE!

May 22 03:04 PM

[relayer75:]

Postscript, July 24, 2009: Those January 2010 AAPL $200 calls are now at $3.50 by $3.60. Nice work, Jason. Stock is at $159 after blow-out earnings this week. $200+ or significantly higher by January 2010 now seems somewhat do-able, but note that before today, we just had the first 12-day upstreak in the Nasdaq since 1992. Anyway, is there a better tech company out there than AAPL? A better, more innovative company in any industry? I don't think so. Keep up the great work, Jason, you've been on fire with your AAPL predictions/analysis, and I'm hoping you're right about the Jobs announcement of the tablet later this summer (Sept.?).

Jul 24 02:24 PM