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Apple (AAPL -0.8%) roundup: 1) Gene Munster fires up his spreadsheet and concludes the odds of...

Apple (AAPL -0.8%) roundup: 1) Gene Munster fires up his spreadsheet and concludes the odds of Apple's gross margin (37.5% in FQ2) falling below 30% are close to nil. He thinks GM would still be 32% even if a cheaper iPhone cannibalized 50% of regular iPhone sales and had only a 15% GM, and a TV with a 10% GM arrived. 2) The USPTO has rejected more Apple patent claims (previous). This time, they involve a patent for showing translucent images. Apple will almost certainly appeal. 3) A Strategy Analytics survey found 4.5" was the most preferred smartphone display size in 2H12. Moreover, a majority of respondents "indicated that they preferred prototypes that have a larger screen than their current phone."
Comments (13)
  • Stone Fox Capital
    , contributor
    Comments (5753) | Send Message
     
    understand the desire for a slightly larger screen than my iPhone 4s, but i don't get the desire for something much bigger. If i want to play games I'm going to want an iPad or desktop and if i want to talk i'm going to want a small screen.
    10 May 2013, 06:29 PM Reply Like
  • Joe2922
    , contributor
    Comments (406) | Send Message
     
    What interests me most about AAPL is how it was 22% of the Nasdaq and led that index higher, then near its top, it was reduced to 11% weighting, and didn't knock the index down as it sank from 703 to 392. The market is in Blowoff Rally mode, and while no one knows when, it will end and correct, then revert to a Bear market. Party like it's 1999, just don't get drunk and miss the sell signal. These unique charts paint the entire portrait: http://bit.ly/WpVqYk
    11 May 2013, 10:05 AM Reply Like
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Notable omission from roundup is iRadio. Universal Music signed their deal with AAPL, Warner Music is close, while Sony trails the pact (http://cnet.co/17PmEhq). With one down, one close, and the third deal being negotiated in the press (that’s what’s going on with the FT report, clearly leaked by Sony), there’s now a decent chance of a WWDC announcement of iRadio.
    10 May 2013, 06:39 PM Reply Like
  • Stanley J G Crouch
    , contributor
    Comments (2080) | Send Message
     
    Now I suspect sub $300 is much more likely.
    10 May 2013, 07:03 PM Reply Like
  • Vegas Ben
    , contributor
    Comments (216) | Send Message
     
    Right... because healthy companies should have a P/E under 2.5 excluding equity...
    10 May 2013, 07:58 PM Reply Like
  • vbbv
    , contributor
    Comments (66) | Send Message
     
    sub $300? You're being too generous kind sir! AAPL should be trading in double digits.

     

    OH WAIT. Long AAPL!
    10 May 2013, 09:27 PM Reply Like
  • lildimsum7
    , contributor
    Comments (520) | Send Message
     
    Obviously!
    10 May 2013, 10:10 PM Reply Like
  • tjmxxx
    , contributor
    Comments (96) | Send Message
     
    Do tell Stanley, we are waiting with baited breath on your insights.
    10 May 2013, 07:18 PM Reply Like
  • Stanley J G Crouch
    , contributor
    Comments (2080) | Send Message
     
    Here is what I said some time ago:

     

    Apple's Flash Crash: A Predictor Of Things To Come? [View article]
    My two and a half cents:

     

    This 'glitch' notwithstanding, HFT is more prevalent than ever, is largely a post-Crisis phenomena and will inevitably blow-up, or otherwise cause big upheaval.

     

    As far as AAPL goes, we are likely to see a much higher high over the course of the next couple of months, BUT that trade of $549 WILL get executed on the way down, probably in the Summer. AND, AAPL will trade at less than $200, or even $100, in 2013/2014 BECAUSE, you cannot eat your I-Phone, or I-Pad, in a depression...!!!

     

    I see no reason to change that view. Although, it took longer than the Summer for the high and the INITIAL collapse to occur
    12 May 2013, 05:03 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4475) | Send Message
     
    SC,
    Just curious what country that AAPL sells its products in, will in your view, be in a depression in '13- 14 ?
    Full disclosure please for the readership short AAPL ?- Net short the market?

     

    Full disclosure Long AAPL, U.S Equities.
    13 May 2013, 03:47 PM Reply Like
  • croatkid1
    , contributor
    Comments (189) | Send Message
     
    Much ado about nothing?

     

    Really, not too much difference between a 4.5" and a 5" especially when measured on the diagonal -
    10 May 2013, 11:22 PM Reply Like
  • BobWelsh
    , contributor
    Comments (34) | Send Message
     
    On screen size, it continues to amaze me how simple the issue is: most people want the largest screen size that's truly "portable" in the way a phone is portable. That means it has to fit in a pocket most likely (front or back). iPad mini is too big. Seems the target range is somewhere around 5".

     

    As to there not being much difference in screen sizes, I disagree! If we look at the 4" iPhone 5 screen and compare that to a potential 5" screen, the difference in screen area is over 50%! This is almost (but not quite) the same difference as moving from a 13" laptop to a 17" laptop. Who would call that minor? And a 4.5" to 5" screen change is almost that of moving from a 13" laptop to a 15" laptop.

     

    From my perspective of the US market, Apple really must come out with a ~5" screen if they want to grow or even maintain market share. If they come out with another small screen, then we know that they're choosing to optimize profit margin over sales growth, and my guess is that that will not be good news for Apple the company or Apple's investors.
    11 May 2013, 01:02 PM Reply Like
  • fuyh123
    , contributor
    Comments (28) | Send Message
     
    Sub $300? such a kidder.
    11 May 2013, 09:14 PM Reply Like
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