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Anthony Wissel
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I am a twenty year technology executive. I have taken four software/internet companies public from 1997 to 2001. I now provide M&A consulting services to both investment banks and early stage hardware and software companies.
My company:
Outberbanks Capital Management, LLC
  • Apple: The Report Gave Us A Slew Of Big Catalysts 0 comments
    Apr 25, 2012 5:32 PM

    Apple reported second quarter earnings after the bell today and these are the highlights of the catalysts that came from the call.

    1) Apple has been historically weak in the enterprise and has been considered a consumer technology, but that story is changing. Tim Cook reported that Apple has 95% support within the Fortune 500 and 75% support within the global 500 for the Ipad, released less then two years ago. Additionally, Apple has an IOS developer program whereby in-house technical teams can develop applications to that operating system. Development equals corporate adoption into the corporate culture of the Global 2000. Tim Cook also mentioned that the Ipad had the strongest adoption of any of Apple's products in its' history. The screen size and graphics make it a useful education tool as the military and the San Diego school district have standardized on the IPad last quarter.

    2) China is big and getting bigger. Revenues for China in the quarter where $7.9 billion up 3x year over year. This was largely due to the IPhone as the IPad did not become available in China until last week. Apple has only four stores on mainland China and one in Hong Kong. The interest for luxury goods is soaring in China and Apple is considered the Gucci of technology.

    3)Apple's distribution model.. The entire shopping experience at an Apple store is much more desirable then any other retail technology platform given the amazing display of products in their stores. The best buying experience of an Apple product is at an Apple store period! Sales per store have increased from $9.9 million last year to $12.2 million this past quarter. 85 million people visited an Apple store in the past quarter an increase of 19% from last year. Additionally over half of the buyers where first time buyers of Apple product. Apple provides a fantastic end user experience which is why people buy their products. Apple also provides an unmatched buying experience which is why people come to their stores.

    In closing ignore the noise and focus on the results. Apple remains a long-term holding, and an undervalued stock.

    Disclosure: I am long AAPL.

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