1. MacBook Air, iTunes video rentals not enough. Shares of Apple (APPL) lost over 5% to $169.04 on Tuesday, in spite of CEO Steve Jobs' highly awaited Macworld keynote speech, in which he unveiled the world's thinnest notebook computer (MacBook Air) and announced a movie rental feature for iTunes, among other things. Analysts see Apple's share price decline as a buying opportunity. Piper Jaffray analyst Gene Munster: "At the end of the day, it's four months of anticipation, followed by a sell-off. And then the Wall Street guys get their hands on it [new products] and things go back up." Separately, Citigroup's Richard Gardner reiterated his "buy" rating for AAPL and $215/share target, saying he expects an EPS beat when AAPL reports on the 22nd.
2. EA to simultaneously release Spore. Electronic Arts (ERTS) said Tuesday it will simultaneously release its much-anticipated game Spore for PCs and Macs later this year. This is noteworthy since game software publishers, including EA, have struggled with the timeliness of releases for Mac. Another matter has been whether Mac user demand and market size justified the costs.
3. Sony Ericsson grabs more market share. A strategy shift to boost sales of lower-cost mobile phones helped Sony Ericsson (SNE) (ERIC) gain more market share, but its sales were flat and profits, although beating estimates, were lower due to higher taxes. Sony Ericsson faces growing competition from Apple (AAPL) and Nokia (NOK) in higher-end media phones, as it tries to preserve margins in its low-end growth effort.
4. FCC ruling on SIRI-XMSR during Q1. FCC Chairman Kevin Martin said he hopes a decision regarding the proposed merger of Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) will be made in Q1, but said it will not be before the Justice Dept.'s antitrust ruling. Separately, Mr. Martin said he is optimistic about the agency's upcoming auction of airwaves for mobile phone service, but acknowledged it is not an ideal time for an auction.
