Sunday, June 26, 2011

Apple Unveils iCloud, iOS 5, OS X Lion (Event Video) *Steve Jobs opens WWDC*

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Apple Co-Founder and CEO Steve Jobs at the Worldwide Developers Conference in June 2011


Apple Co-Founder and CEO Steve Jobs opened the Apple Worldwide Developers Conference in San Francisco, California. Jobs, who has been on medical leave since January, received a standing ovation. This session was about software: OS X Lion, iOS 5, and iCloud.

Mac and OS X Lion SVP of WW Product Marketing Phil Schiller introduced OS X Lion and VP of OS X Software Craig Federighi demonstrated the new features. Schiller stated there are over 54 million active Mac users worldwide and while the PC market shrank 1% year over year in Q1 2011, Mac sales were up 28%. In addition, Mac has outgrown the industry in every quarter for 5 years. Mac sales are 73% of Apple computer sales (Mac and iMac). OS X Lion has over 250 new user features, including the 10 new, updated, and reviewed:
Multi-Touch Gestures via the trackpad (e.g. scroll, tap to zoom, pinch to zoom, swipe)
 Full Screen Applications including system applications (run multiple full screen apps via swipe)
 Mission Control is bird's eye view of everything going on in your system
 Mac App Store built into OS X Lion, for software applications, now #1 PC software channel, ahead of Best Buy, Wal-Mart, Office Depot
 Launchpad shows all applications on screen with pinch gesture
 Resume takes you back to where you quit in an application and also works system wide
 Auto Save documents, work plus archives previous saved versions
 Versions of documents are saved, maintained by Auto Save
 AirDrop peer-to-peer WiFi network, auto discovery and setup, fully encrypted
 Mail new version
OS X Lion will only be available in the Mac App Store for $29.99. Will be available for consumers in July 2011.

iOS 5 a Major Release SVP of iOS Software Scott Forstall introduced iOS 5, noting iOS powers the iPhone, iPad, and iPod Touch. Forstall stated over 200 million iOS devices have been sold, making iOS the #1 mobile operating system with a 44% installed base (followed by Android 28%, RIM 19%, 9% Other). The latest addition to the iOS family is the iPad 2 and over 25 million iPads have been sold in the first 14 months since being introduced. The iTunes music store goes along with iOS and over 15 billion songs have been sold. This makes the iTunes music store the #1 retailer of music in the world. Over 130 million books have been downloaded from the iBooks store. There are now more than 425,000 apps on the App Store of every genre imaginable, including over 90,000 iPad apps. Over 14 billion apps have been downloaded from the App Store in less than 3 years and over $2.5 billion has been paid to developers. iTunes, iBooks, and the App Store have over 225 million accounts with credit cards and 1-click purchasing. iOS 5 has over 200 new user features, including the 10 new, updated, and reviewed:
● Notification Center (, phone, mail, calendar, SMS), already delivered over 100 billion push notifications
● Newsstand with subscriptions of newspapers, magazines including background downloads
● Twitter interface and integration
● Safari Internet browser with reader, reading list, tabbed browsing (iOS Safari mobile web browsing share 64% vs. Android 27%)
● Reminders, with geofence
● Camera faster to access and edit within iOS 5
● Mail with rich text formatting
● PC Free in a Post-PC World, setup, activate, update iOS device without a PC
● Game Center, iOS is most popular gaming platform on the planet, 100,000+ titles in App Store, 50 million Game Center users, friend and game discovery
● iMessage service between all iOS users
iOS 5 will ship to all customers this autumn 2011 and be available for iPhone 3GS, iPhone 4, iPad, iPad 2, iPod Touch (3rd and 4th generation).

iCloud Becomes Your Digital Hub Apple Co-Founder and CEO Steve Jobs introduced iCloud. "We're going to move your digital hub, the center of your digital life, to the cloud." This includes documents, photos, video, music, etc. which will be automatically uploaded to iCloud and synced to the other iOS devices. The iOS devices, e.g. iPhone, iPad, iPod Touch, Mac, will be devices linked to the cloud, iCloud. Steve Jobs explained, "iCloud stores your content and wirelessly pushes it to all your devices. So it automatically uploads the content, stores it, and automatically pushes it to all your other devices. Also, iCloud is integrated with your apps, so everything happens automatically. There is nothing new to learn. It just works."
● Contacts, calendar, calendar sharing, and mail are synchronized with each iOS device via iCloud and are now free (formerly on MobileMe for $99 a year).
● Three more apps will be in iCloud: App Store, iBooks, and Wireless Backup to iCloud. There will be automatic daily backups to iCloud over WiFi including purchased music, apps, and books, photos and videos, device settings, and app data.
● Three new apps and features will be in iCloud: Documents in the Cloud (Pages, Numbers, and Keynote), Photo Stream (synced to Apple TV), and iTunes in the Cloud. Roger Rosner, VP of iWork, gave a demonstration of how iWork works with iCloud. Eddy Cue, VP of Internet Services, gave a demonstration of Photo Stream and iTunes in the Cloud.
● These 9 apps constitute iCloud: Contacts, Calendar, Mail, App Store, iBooks, Wireless Backup, Documents in the Cloud, Photo Stream, and iTunes in the Cloud. All are free.
iCloud setup is on iOS 5. 5GB free storage for Mail, Documents, and Backup and not counting against storage for purchased music, apps, or books or Photo Stream.
iTunes in the Cloud beta is available now via iOS 4.3. The entire iCloud will be available with iOS 5 this autumn 2011.

Apple - 2011 WWDC Keynote Address OS X Lion, iOS 5, and iCloud unveiled at the 2011 Apple Worldwide Developers Conference in San Francisco.



About Apple Inc.

Apple's Mission Statement and as described in press releases, "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices."


Charts and Analysis!

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Saturday, June 25, 2011

Apple Rallies Above 2011 Low (Chart) *Continues below 200-day average* AAPL

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Is the Apple iPhone 5 coming soon? In September?


Apple Overview

Apple Inc. AAPL closed the week at $326.35 on Friday, June 24, 2011 and was up +1.90% for the week, is down a dismal -6.18% for June, is up +1.17% for 2011, and is up +292.67% from the market cyclical low on March 9, 2009. AAPL set an all-time closing high of $363.13 on February 16, 2011 and is -10.13% below this peak.

Benchmark $348.48 Apple continues below the then all-time closing high of $348.48 of January 14, 2011 and has closed below since May 10, 2011. That all-time closing high was on a Friday and Apple Inc. announced the next Monday, January 17, that Co-Founder and CEO Steve Jobs was taking a medical leave of absence. We are watching this benchmark price of $348.48 as an indicator of buyer conviction and confidence in AAPL with Steve Jobs absent on medical leave.

S&P 500 By comparison, the overall market, the S&P 500, at 1268.45, was down -0.24% for the week, is down -5.71% for June, and is up +0.86% for 2011. SPX is up +87.49% since the March 9, 2009 market cyclical low. SPX closed at a multi-year closing high of 1363.61 on Friday, April 29, 2011, the highest close since the June 9, 2008 close of 1404.05, and is now -6.98% below that peak. AAPL is outperforming the overall market long-term since the March 9, 2009 market bottom, outperformed the market in 2010, and is now slightly outperforming the market in 2011. A review of the S&P 500 is here [S&P 500 Drops 7 of Past 8 Weeks (Chart) *European debt crisis weighs on markets*].

Apple Fundamentals Apple reported near-record calendar Q1 2011 financial results on Wednesday, April 20. This was after Apple reported calendar Q4 2010 financial results on Tuesday, January 18 which were a record and legendary. Calendar Q1 is historically the weakest quarter for Apple. These financial results are reviewed and analyzed on this blog.. Current Apple financial  data, charts, and review is at the Apple Financial Performance page, updated for the latest calendar Q1 2011 results reported on April 20. A review and analysis of the Q1 2011 earnings call has been posted at the Apple Earnings Conference Call page. Our updated valuation and target price of AAPL stock is posted at the Apple Stock Valuation page. International sales accounted for 59% of revenues for Q1 2011, down from 62% in Q4 2010 and up from 52% in Q3 2010.

Apple Product News 2011 A summary and review of 2011 major announcements are below in this post.

Economic and Market News Information about the USA and world economies plus the USA financial system are posted at Boom Doom EconomyFinancial Controls, and Baidu Planet. Additional current commentary on both the overall stock market and economy is posted at Matrix Markets.


Apple Daily Chart

Apple Daily Chart Below is the AAPL daily chart since December 28, 2011 to illustrate recent price interactions.

Noteworthy Closing Prices
Current Close: $326.35
2011 and All-Time High: February 16 $363.13
2011 Low: June 20 $315.32
2010 High: December 28 $325.47
2010 Low: February 4 $192.05
YE December 31, 2010: $322.56
YE December 31, 2009: $210.73
Cyclical Low: January 20, 2009 $78.20



Apple Chart Review
Intermediate Term Trend plunging 25d sma less than descending 50d sma, AAPL is below both, very bearish
Long Term Trend AAPL greater than 10 month ema = 321.62, has been overall bullish since April 2009, tenuously bullish
Key Resistance 200d avg 328, 20d avg 332, 50d avg 338, 100d avg 343, benchmarks 348.48, 350.00
Key Support at support, 325, 318-319, 316, 6-20-11 closing low 315
Moving Averages below all major averages: 20d, 50d, 100d, 200d avgs
Uptrend Line below since 6-7-11; line from 1-20-09 closing low 78.20 up thru 2-4-10 192.05
Downtrend Line below since 6-6-11; line from 2-16-11 all-time closing high 363.13 to 3-4-11 peak 360.00
RSI 14 Day = 40.63 is near oversold, level
RSI 28 Day = 46.79 is reasonable, ascending
MACD (12,26,9) = +0.02, ascending
Volume slightly high 15.7M latest day, 50 day avg = 14.6M
Price Earnings Ratio (ttm) very low 15.56, historically in low 20s

Conclusion Apple has dropped with the equity markets, concerns over iPad supply disruptions, and concerns over the future well-being of Co-Founder and CEO Steve Jobs. "General malaise" describes recent AAPL price action. However, the fundamentals of Apple continue amazingly strong with Q1 2011 near-record total revenues and earnings per share, total assets of $94.9 billion, and cash and investment reserves of $65+ billion. The remainder of 2011 appears positive for Apple and we are forecasting Q2 to outperform Q1, Q3 to outperform Q2, and the holiday Q4 quarter setting another record peak. Total assets should exceed $100 billion this calendar quarter, Q2 2011. Quarterly total revenues should reach $30 billion by Q4 2011. The fundamentals of Apple Inc. have been stellar, as discussed above and reviewed on this blog. Our AAPL target price short-term remains $370 - $375. The intermediate-term trend indicator is very bearish and the long-term trend is now tenuously bullish.

Disclosure We have no position in AAPL, but are bullish for 2011.

Apple News 2011 A summary & review of 2011 & 2010 major announcements are posted or will be posted on this blog.
Apple held the annual Worldwide Developers Conference (WWDC) June 6-10 with CEO Steve Jobs presenting the keynote speech and introducing iCloud. Also previewed were Mac OS X Lion and iOS 5.
An explosion at a Foxconn plant on May 20 in Chengdu, China which produces the iPad 2 created uncertainty over manufacturing disruption. There already has been concern the demand for iPad 2 is much greater than Apple's production abilities. Cirrus Logic earlier reported production problems with an audio device and 50% of its business is supplying components to Apple. Components of the iPad 2 (at least five) from Japanese suppliers may be delayed due to the March earthquake.
The new 27-inch all-in-one iMac was announced May 3.
The international launch of the iPad 2 in 25 countries was March 25 to long lines of customers at Apple stores.
The iPad 2 went on sale on Friday, March 11 and promptly sold out online, pushing delivery dates from days to weeks. Lines at Apple stores in the USA were long and the only way to have any hope of purchasing an iPad 2 and taking immediate delivery.
Apple launched the iPad 2 and iOS 4.3 on March 2. Steve Jobs also announced 1) 100 million downloads from iBooks store, 2) Random House will begin distributing their 17,000+ books on iBooks, 3) 200 million accounts with credit cards and one-click purchasing on iTunes, App Store, and iBooks, 4) over $2 billion paid to developers from selling apps on the App Store, 5) 100 million iPhones have been shipped, and 6) almost 15 million iPads were sold in 2010.
Apple launched the new MacBook Pro on February 24.
Steve Jobs met with President Barack Obama at a dinner on February 17. This was the first "semi-public" appearance of CEO Jobs since the announcement of the medical leave on January 17.
Apple announced an App Store subscription service for magazines, videos, music, and videos on February 15.
The Apple iPhone 4 officially is on the Verizon Wireless network and available at stores effective February 10. Verizon Wireless announced on February 4 record first day launch sales (online pre-order) of the iPhone 4. The record was broken in 2 hours.
On January 22 Apple announced the App Store had surpassed 10 billion downloads in about 2.5 years.
The online Mac App Store opened on January 6, 2011, increasing Apple's cloud presence, and Apple announced there were 1 million downloads in the first day.


About Apple

Apple Inc. achieved a milestone the week of January 7, 2011 when total market capitalization surpassed $300 billion. Previously, the week of May 24, 2010, Apple surpassed Microsoft in market capitalization to become the largest technology company, and second overall largest company, in the USA. Apple Inc. has managed to continue above $300B market capitalization after the announcement of Steve Jobs' medical leave of absence. AAPL's market capitalization is #2 at $301.79 billion, compared to #3 Microsoft's of $204.92 billion. #1 Exxon leads with $378.22 billion (Exxon surpassed $400 billion in market capitalization for the first time the week ending February 4, 2011). Apple reported calendar Q1 2011 total revenues of $24.67 billion and net income of $5.99 billion. Microsoft reported calendar Q1 2011 total revenues of $16.43 billion and net income of $5.71 billion. Microsoft continues to have higher profit margins. Current Apple financial  data is at the Apple Financial Performance page. Current Microsoft financial data is at the Microsoft Financial Performance page. Apple is now 12.34% of the NASDAQ 100 index, as measured by the PowerShares QQQQ ETF portfolio holdings, weighted by market capitalization, but rebalanced effective May 2, 2011. AAPL is one of the most traded stocks in the USA. Per the SEC Form 10-K, Apple had 46,600 full-time employees and 2,800 temporary full-time employees and contractors as of September 25, 2010.

Apple's Mission Statement and as described in press releases, "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices."


More Charts and Analysis!

USA and Global economic charts
Apple (AAPL) financial performance and stock charts
Google (GOOG) financial performance and stock charts
Microsoft (MSFT) financial performance charts
Intel (INTC) financial performance charts
VMware (VMW) financial performance charts
SalesForce.com (CRM) financial performance charts
USA failed and problem banks
Federal Reserve statistical releases
JPMorgan Chase & Co. (JPM) financial performance charts
Citigroup (C) financial performance charts
Goldman Sachs (GS) financial performance charts
Wells Fargo (WFC) financial performance charts
Bank of America (BAC) financial performance charts
Morgan Stanley (MS) financial performance charts
S&P 500 (SPX) charts and review
China economic, Internet, and technology news
Baidu (BIDU) financial performance and stock charts


Visit Osprey Port News Network!
Apple, Google, Baidu, China, technology, financial system, stocks, markets, economy, science, environment, future


Follow Apple Digest (@AppleReporter) on Twitter!
Apple & technology news plus AAPL stock analysis. Select USA & Global economic news.


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Seeking Alpha