Forum Views ()
Forum Replies ()
Read more with google mobile :
Apple on a win streak as rivals regroup
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Apple on a win streak as rivals regroup
Reuters - Friday, January 14
Send
IM Story
Print
By Gabriel Madway
SAN FRANCISCO - Apple Inc enters 2011 on a roll, a cash-generating machine with surging sales across its product lines -- even as it confronts a sea of restive rivals determined to halt its stunning run of success.
As quarterly earnings approach next Tuesday, expectations are that Apple's revenue should easily swell more than 50 percent. That would be a sparkling performance for a company of any size, much less one with a market value north of $300 billion.
With such momentum, what could potentially derail this train?
Gleacher & Co analyst Brian Marshall said there's a danger that Apple could become a victim of its own success. "If expectations get too far ahead, there's no way the company can live up."
Still, Marshall had no concerns about Apple's holiday season, a sentiment shared on Wall Street: "I don't think there was any weakness at all in the quarter."
Apple's advantages are well-documented: the global spread of the iPhone, which should sell more than 60 million units this year; the rise of the iPad, which single-handedly created the tablet computing market; and continued strong growth from the resurgent Mac line of computers.
The most valuable U.S. company behind Exxon Mobil, Apple added more than $100 billion in market cap in 2010. Shares have already moved up 7 percent this year, buoyed by the long-awaited launch of the iPhone with No. 1 U.S. carrier Verizon Wireless.
With its share price soaring, analysts and investors are debating the best way to value Apple. The company trades at roughly 17 times forward earnings, versus 12 times for Microsoft and 21 times for Google.
But some argue for excluding Apple's massive, $50 billion-plus in cash and investments from the valuation, meaning Apple trades at closer to a 15 multiple.
Brian White, an analyst with Ticonderoga Securities, said that by that yardstick, Apple looks positively cheap.
"At 15 times ex-cash, they're not really expensive," he said. "It's tough to really scratch your head on that kind of multiple with the kind of growth they've been delivering."
For White, the biggest threat to Apple is Google and its Android mobile operating system, which has seen torrid growth as it crops up on a slew of both iPhone and iPad rivals.
Last week's Consumer Electronics Show showcased dozens of Android-based devices, underscoring the determination of Apple's competitors.
"Almost everybody else is using Android," he said. "Looking out two to five years, they need to make sure that Android doesn't do what Microsoft did to them in the PC market."
STRONG HOLIDAY
The consensus benchmarks for Apple's fiscal first quarter, which includes the holiday shopping season, are roughly 15.5 million iPhones, 5.5 million iPads and 4 million Mac computers. As usual, investors will be expecting more.
"The only surprise in earnings is if there is anything less than glorious news," said Barry Jaruzelski, a partner at consulting firm Booz & Co.
Although he says demand for Apple products will continue to surge, and sees a particular opportunity in the corporate market, Jaruzelski said the company's biggest vulnerability may be in acquiring supply of crucial parts.
"One of the greatest risks they have to actively manage is around supply constraints and availability, things are probably running very very tight," he said. "Even when things are going right, they're running right on the line.
Apple is a voracious consumer of touchscreen displays and flash memory, among other components.
An out-sized surprise in Apple results has become an article of faith among investors. The company has beaten Wall Street's estimate by an average of 29 percent over the past two years, and bested on revenue by 9 percent on average.
Apple is expected to report earnings of $5.37 a share on revenue of $24.4 billion, according to Thomson Reuters
I/B/E/S.
According to StarMine's SmartEstimate, which places more weight on recent forecasts by top-rated analysts, Apple should post EPS of $5.47 on revenue of $24.5 billion.
One of Apple's few weak spots has been gross margin. Last quarter, Apple's first margin miss in at least two years raised the concerns of some investors who feared that its profitability had peaked.
Wall Street is forecasting a gross margin of 37.3 percent, up slightly from the previous period. The company benefited
from favorable component costs in the quarter, analysts said.
Recommend
Send
IM Story
Print
Related Articles
US-TECH Summary Reuters - 1 hour 35 minutes ago
Intel positive on PC growth in emerging Asia Reuters - 2 hours 39 minutes ago
Intel earnings soar with rise of "cloud" computing AFP - Friday, January 14
US videogame sales flat in 2010: NPD AFP - Friday, January 14
Annual video game sales fall, better 2011 in view Reuters - Friday, January 14
News Search
Top Stories
N.Zealand flood rescuers get Aussie snake catcher
Fiat-Chrysler deal on the line as workers vote
Phelps returns to the swimming pool in Texas
Oscar hopeful Firth gets Hollywood star
Fed chief sees US growth up to 4.0 percent in 2011
More Top Stories »
ADVERTISEMENT
Most Popular
Most Viewed
Falling blackbirds baffle Arkansas officials
Hasta la Vista: Arnie quits as California governor
Goldman deal 'values Facebook at $50 billion'
Spain lotto winner nearly loses millions by tossing tickets
Brazil's 2010 trade surplus lowest in 8 years: official
More Most Viewed »
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo!
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Entertainment
Photos
Yahoo! News Network
Copyright © 2011 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Friday, 14 January 2011 Lebanon in turmoil as caretaker govt steps in
Italy's top court curbs 'Berlusconi immunity law'
Lebanon to start talks on new government on Monday
MTS estimates 2010 Russia handset sales rose 25 percent
Fed chief sees US growth up to 4.0 percent in 2011
Al Qaeda claims kidnapping of Frenchmen found dead
|
South Sudan vote will meet global standards
Ship carrying acid capsizes in Germany, 2 missing
Bruno Mars' "Grenade" Launches Back Into The #1 Spot On Billboard Hot 100
Web filters not 100% foolproof against risky sites: EU
Biden, Maliki focus on economic ties in Baghdad talks
US trade gap shrinks, but not with China
Brazil flood deaths rise to 388
|
Russian crash report is incomplete: Polish PM
NATO: 2 Afghan civilians killed in violence
Gbagbo loyalists target UN as stand-off escalates
US jobless claims rise more than expected
Death toll rises above 300 in Brazil floods
China unlikely to accept Iran invite to tour nukes
Italy's top court rules Berlusconi can face trial
|
Medvedev acknowledges graft progress scant, seeks law
|
Jordan dump Saudi Arabia out of Asian Cup
Golden Globes to launch Hollywood awards season
Biden visits Baghdad 'to celebrate progress'
Myanmar's Suu Kyi in party ban appeal
S. Korea, Japan ships in island dispute
Social gaming market to pass $1 billion in 2011
|
US warns China on protectionist 'folly'
U.S. may challenge Google's ITA deal: sources
|
Floods force a million Sri Lankans from homes
US-ENTERTAINMENT Summary
US wants S.Korea trade pact by July
Student who hacked into Palin's e-mail enters prison
|
Japan steps up checks over German dioxin fears
Tinie Tempah leads BRIT music award nominations
Starbucks to enter India with Tata tie-up
Actor Peter Fonda discovers dead man in car
China arrests 96 over tainted milk
RIM shares jump after India deal; new phone leaked
|
Life imprisonment for Chinese who evaded toll fees
A Minute With: Paul Giamatti about "Barney's Version"
China launches trial to allow overseas yuan investment
SAP software sales jump outshines lawsuit drag
|
Eminem, Lady Gaga, Katy Perry to sing at Grammys
Hearing sheds light on Michael Jackson private life
Japan's Fast Retailing quarterly net profit dips 35%
Golden Globes to launch Hollywood awards season
US wants Korea trade deal approved by July
Stieg Larsson's partner bids to finish final novel
Russian internet game puts Medvedev in firing line
|
Warhol, pinball all appeal at Dennis Hopper auction
Three Indonesia soldiers on trial over torture
USDA unveils new healthier school lunch guidelines
Southwest pilot holds plane for grandfather of murdered toddler
Initial jobless claims jump by 35,000 to 445,000
Oscar-winning Indie film "Once" getting Broadway adaptation
Bruno Mars' "Grenade" Launches Back Into The #1 Spot On Billboard Hot 100
Court Lifts Stay On EPA Greenhouse Rules In Texas
Fugitive found after 30 years of hiding
Dita Von Teese's cleavage too "offensive," says "CSI" bosses
Banks foreclosed on 1 million US homes in 2010
Eminem, Lady Gaga, Katy Perry to sing at Grammys
|
FDA limits acetaminophen levels in combo drugs
Actor Peter Fonda discovers dead man in car
|
Tinie Tempah leads BRIT music award nominations
|
A Minute With: Paul Giamatti about Barney's Version
|
Hearing sheds light on Michael Jackson private life
|
US-TECH Summary
U.S. may challenge Google's ITA deal: sources
SAP software sales jump outshines lawsuit drag
Russian internet game puts Medvedev in firing line
RIM shares jump after India deal; new phone leaked
Taiwan, China to build first direct undersea cable
WikiLeaks chief blasts Chinese Internet censorship
S. Korea may charge Google with collecting personal data
News Corp. exploring options for Myspace
Britain's coalition gov't dealt by-election blow
Intel positive on PC growth in emerging Asia
Fiat-Chrysler deal on the line as workers vote
Intel earnings soar with rise of "cloud" computing
Phelps returns to the swimming pool in Texas
U.S. again urges North Korea to meet its obligations
|
Oscar hopeful Firth gets Hollywood star
US videogame sales flat in 2010: NPD
Brazil death toll rises as rescuers battle floods
|
Annual video game sales fall, better 2011 in view
Tunisian leader bows to unrest, sets departure date
|
Scientists make chickens that don't spread bird flu
Amazon.com launches e-book series for Kindle
Australia flood clean-up starts, tough task ahead
|
Cuba allows visit with jailed American 'spy'
IBM prepares for machine vs man Jeopardy! showdown
Kazakh MPs back referendum to extend leader's rule
|
U.S. warns on China cyber, anti-satellite capability
Nigeria's Jonathan wins ruling party primaries
|
Tucson says farewell to youngest shooting victim
AOL outsources sports, health news coverage
June sentencing date set for ex-media mogul Black
Microsoft has best month for Xbox despite shortage
Japan PM changes cabinet but rough road ahead
|
Foxconn engineer jumps to death in China: media
Haiti leader has doubts about OAS report: official
|
U.S. again urges North Korea to meet its obligations
US Defense Secretary visits South Korea
Martha Stewart's mishap with own dog sends her to ER
Web outcry wins retrial for jailed Chinese toll dodger
Oscar hopeful Firth gets Hollywood star
China prepares for record Lunar New Year travel
Japan PM reshuffles cabinet in budget push
Backstreet Boys' A.J. McLean heads back to rehab
Japan PM changes cabinet but rough road ahead
Brisbane flood clean-up starts as damage emerges
Apple on a win streak as rivals regroup
|
Air China sees 2010 net profit more than doubling
Strong Intel outlook eases longer-term tablet fears
|
Intel positive on PC growth in emerging Asia
|
Genitalia calendar whips up storm in Italy
Australia flood clean-up starts, tough task ahead
Annual video game sales fall, better 2011 in view
|
Seoul shares open flat, banks rise, POSCO dips
Martha Stewart's mishap with own dog sends her to ER
IBM prepares for machine vs man Jeopardy! showdown
|
"Spider-Man" musical delayed again
Not yet divorced Kelsey Grammer plans Feb wedding
Colin Firth downplays actors' importance to society
Social gaming market to pass $1 billion in 2011
|
Oscar hopeful Firth gets Hollywood star
U.S. warns on China cyber, anti-satellite capability
|
AOL outsources sports, health news coverage
|
"Glee Project" attracts Gleeks from far and wide
Kara DioGuardi booed for not answering 'Idol' question
The psychology of the Golden Globes dress
Not yet divorced Kelsey Grammer plans Feb wedding
|
Spider-Man musical delayed again
|
Colin Firth downplays actors' importance to society
|
Kara DioGuardi booed for not answering 'Idol' question
|
Martha Stewart's mishap with own dog sends her to ER
|
Glee Project attracts Gleeks from far and wide
|
Backstreet Boys' A.J. McLean heads back to rehab
|
Intel earnings soar with rise of "cloud" computing
Apple on a win streak as rivals regroup
US may challenge Google's ITA buy: WSJ
Breastfeeding study raises doubts over guidelines
Gunshots and tear gas disperse Tunis protest
|
EU has Azerbaijan 'support' for gas pipeline project
Chip sector jumps on strong Intel report, outlook
German inflation confirmed at 1.7% in December
Toll in Ivory Coast rises to 247 dead: U.N.
|
News Corp, Apple delay iPad digital newspaper: report
Court clears ex-Delphi chairman of fraud charges
Apple's iPad enters Singapore classrooms
Italy's Berlusconi in probe over teenage girl
|
N.Zealand flood rescuers get Aussie snake catcher
Sadr's followers demand Biden stay away from Iraq
|
List of guests shrinks for Iranian nuclear tour
|
North Sudan ruling party says south vote broadly fair
|
Some question pep rally atmosphere at Obama speech
Seven Afghan taxi drivers killed by roadside bomb
|
Any pause in harsh rhetoric may be short-lived
Hariri returning to Lebanon: Turkish official
|
Japan protest Kawashima's red card
Philippines to restart talks with Muslim rebels
New Year parties a headache for staff in China
Thai cops to grill kids who stay out after 10pm
India's inflation leaps above 8%
Groupon, Pandora move on IPOs: sources
|
News Corp, Apple delay iPad digital newspaper: report
|
Chip sector jumps on strong Intel report and outlook
|
Online dating is not just for kids, seniors say
|
Analysis: Investors look to cloud for tech stock picks
|
Wikipedia founder sees biggest impact yet to come
|
U.S. agency sees problems in Falcone's wireless plan
|
Korean director to judge at Sundance Film Festival
Tinie Tempah leads Brits nominations
China central bank vows to further loosen capital flows
Michael Jackson scents set for launch
The world's 8 most unusual hotels
Taiwan dollar price reflects market needs
Simon to face Troicki in Sydney tennis final
Pakistan's July-Dec foreign investment falls 15.4 pct
India's Tata Coffee shares jump on Starbucks deal
Lehman Brothers expects to pay creditors more cash
Seoul shares end up 0.9 pct helped by banks, autos
Pakistan
Jude Law returns to London stage in Anna Christie
|
South Korea vows to keep 2011 inflation at 3 pct
KEPCO eying stakes in uranium enrichment firms -sources
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights