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Apple Stands Firm On CEO Steve Jobs’ Return In June

Aviv — Wed, 25 Feb 2009 23:56:32 +0000

Apple’s annual shareholder meeting was relatively quiet. Aside from the by-the-book motives of some parties who grilled Apple execs about Steve Jobs, no journalists or reporters were allowed to directly relay information to the press, and as usual Apple did not release a transcript.

Macworld notes that one of the first questions asked at Wednesday’s annual shareholder meeting was directly centered around Apple CEO Steve Jobs, his health and his return to Apple. Jobs is currently on a medical leave from Apple until June, and the last we heard was that the SEC was launching an official investigation into the situation.

Even though some sites are sensationalizing Wednesday’s shareholder meeting by saying that it was “dominated by politics”, it was not. This is standard affair and every year Apple’s board advises its shareholders to steer clear of these potentially fruitless affairs. Why these other websites would attempt to create a seemingly turbulent environment remains unknown. However, because of the unfortunate visibility shed, their reports may get echoed.

As we made available in Apple’s proxy report before the meeting, and outlined here, shareholders were voting on certain proposals that could potentially change or alter the way Apple handles some of its fiscal reports, and even shed light onto trade-secret partnerships. However, on rather known guidance from Apple’s board, shareholders voted against every single one of these proposals. As far as the business side of things during the meeting, they were standard affair.

“A shareholder asked whether Apple’s board of directors had kept investors in the dark about the status of Jobs’ health and inquired about a succession plan. Board member Arthur Levinson, who is also chairman and CEO of biotech firm Genentech, replied that the board disclaims information that it deems important and proper, and that it talks regularly about a succession plan.

Otherwise, the meeting served largely to have executives assure shareholders that the company was on the right track. Filling in for Jobs—and donning a Jobs-like pair of blue jeans and black (though collared, not turtleneck) shirt—chief operating officer Tim Cook cited strong Mac, iPod, and iPhone sales in the last year and hailed the App Store as “absolutely the envy of the industry.” He also reassured shareholders that he was “very confident of our product pipeline,” Jonathan Seff explains for Macworld.

Another question asking for clarification about Apple’s decision to pull out of Macworld was answered by Apple COO Tim Cook and chief financial officer Peter Oppenheimer. When asked whether Apple would ever reconsider the move, Cook explained that they have “very fond memories” of the Macworld Expo, however reiterated the company’s stance on utilizing their retail chain of 250 stores to create “many, many Macworlds each week.”

Notably, the audience sang Steve Jobs “Happy Birthday” in lieu of his 54th birthday on Tuesday, and tim Cook promised that Jobs would get the message.

Thanx to 9to5mac for the image

Apple Shareholders Re-elect Board, Vote Proposals Down [U]

Aviv — Wed, 25 Feb 2009 19:43:24 +0000

Even though many shareholders and investors felt downright lied to throughout the ongoing Steve Jobs health issues, the company’s shareholders have re-elected the same board of directors and voted down proposals they felt unnecessary.

Acting on relatively firm confidence and guidance from the board itself, Apple’s board of directors was re-elected including CEO Steve Jobs, Former Vice President Al Gore, and Google CEO Eric Shmidt.

As we outlined earlier today, shareholders were voting on the following proposals:

• the election to the Board of the eight nominees named in this Proxy Statement (Proposal No. 1);
• a shareholder proposal regarding a political contributions and expenditures report, if properly presented
at the Annual Meeting (Proposal No. 2);
• a shareholder proposal regarding the adoption of principles for health care reform, if properly presented
at the Annual Meeting (Proposal No. 3);
• a shareholder proposal regarding a sustainability report, if properly presented at the Annual Meeting
(Proposal No. 4); and
• a shareholder proposal regarding an advisory vote on compensation, if properly presented at the Annual
Meeting (Proposal No. 5).

True to Apple form, there will be no transcript of this event, and Apple is not allowing live reporting. However, we have made the official proxy statement available for download. Any and all information pertaining to the proposals and board guidance, as well as shareholder and investor relations can be found in the proxy documents.

Update: Fortune is providing as much of a sneak peak into the shareholders meeting as possible. While we know people in attendance, they did not attempt to make it inside the meeting with wireless machines.

Annual Apple Shareholders Meeting, Proxy Statement Made Available

Aviv — Wed, 25 Feb 2009 17:02:34 +0000

Ahead of Apple’s 2009 Annual Meeting of Shareholders, we have made available the official proxy statement, as well as the company’s annual 10k report.

Questions about Apple CEO Steve Jobs are to be expected, and above all else, expect Apple to tiptoe around the subject. Ever since it was reported that the SEC was launching an official investigation into Steve Jobs’ recent health issues, the speculation has ramped up, and everyone with an opinion has made sure to chime in.

For Download: 2009 APPLE ANNUAL MEETING OF SHAREHOLDERS STATEMENTS

What items will be voted on at the Annual Meeting?

Shareholders will vote on five items at the Annual Meeting:
• the election to the Board of the eight nominees named in this Proxy Statement (Proposal No. 1);
• a shareholder proposal regarding a political contributions and expenditures report, if properly presented
at the Annual Meeting (Proposal No. 2);
• a shareholder proposal regarding the adoption of principles for health care reform, if properly presented
at the Annual Meeting (Proposal No. 3);
• a shareholder proposal regarding a sustainability report, if properly presented at the Annual Meeting
(Proposal No. 4); and
• a shareholder proposal regarding an advisory vote on compensation, if properly presented at the Annual
Meeting (Proposal No. 5).

What are the Board’s voting recommendations?

The Board recommends that you vote your shares:
• “FOR” each of the nominees to the Board (Proposal No. 1);
• “AGAINST” the shareholder proposal regarding a political contributions and expenditures report
(Proposal No. 2);
• “AGAINST” the shareholder proposal regarding the adoption of principles for health care reform
(Proposal No. 3);
• “AGAINST” the shareholder proposal regarding a sustainability report (Proposal No. 4); and
• “AGAINST” the shareholder proposal regarding an advisory vote on compensation (Proposal No. 5).

Slow January for Mac and iPod, Sales Dip up to 14%

Aviv — Wed, 18 Feb 2009 03:39:31 +0000

Not completely immune from the global financial crisis, new market data from research firm NPD group shows Apple’s slowing sales in the month of January, when compared to the same time last year.

NPD’s data explains that in when compared to last January, Mac unit sales were down 6%, while even less iPod units were sold dipping 14%. In comparison to what was expected by Wall Street, Piper Jaffray analyst Gene Munster estimated that Mac sales would fall 4%, and iPod sales 11%.

In a report issued to clients on Tuesday, Munster estimates that Mac sales for the March quarter should be between 2 and 2.2 million units, and expects Apple to sell between 9 and 10 million iPods. As a report over at Fortune notes, Munster sees the overall situation as “a neutral or slightly positive,” especially considering the entire economy’s current financial crisis.

Munster also found something to cheer about in the iPod numbers, even though he now expects unit sales to fall 6% to 15% by the end of the quarter. “Given concerns regarding iPod weakness,” he writes, “we believe the segment’s in-line performance relative to Street expectations is a positive.” He was also pleased by the average price for iPods in January, which was up 4%. He had expected it to fall 3%.

While explaining that some of the information may be hard to digest from NPD’s market research, Munster believes that higher priced iPod touches in Apple’s lineup, may help to “exceed our expectations in the March quarter.”

Munster’s data holds true to the belief that Apple has remained resilient through this tough time. “In a tough economy where headlines have been dominated by layoffs, cuts and downsizing, Apple has remained focused on securing its bottom line and treading lightly with product announcements. In terms of marketing Apple has maintained a mystique around the company and its products. Even though swarms of people are demanding cheaper devices, smaller notebooks and tiny iPhones, Apple has steered clear of entering new product categories. Which in terms of volatility from a shareholder’s perspective is a good thing. There’s no reason to gamble on a new product, or revolutionizing a new product category, when consumers just are not spending money.

Munster has pinpointed a $180 target for Apple shares, which at this point seem like a distant memory. His near $200 target is one of the highest on Wall Street, and the stock has just recently bounced back from hitting 52 week lows in the high-seventies.

Apple Stays Resilient In a Turbulent Financial Environment

Aviv — Fri, 06 Feb 2009 00:39:42 +0000

In an extremely turbulent financial market, Apple’s fundamental business remains resilient. The company has positioned itself to withstand the current economic recession better than many of its competitors, and has continued to deliver promising numbers.

In a tough economy where headlines have been dominated by layoffs, cuts and downsizing, Apple has remained focused on securing its bottom line and treading lightly with product announcements. In terms of marketing Apple has maintained a mystique around the company and its products. Even though swarms of people are demanding cheaper devices, smaller notebooks and tiny iPhones, Apple has steered clear of entering new product categories. Which in terms of volatility from a shareholder’s perspective is a good thing. There’s no reason to gamble on a new product, or revolutionizing a new product category, when consumers just are not spending money.

As we’ve explained before, and as seems to be the case moving forward so far in 2009, Apple is focused on fundamentally securing its bottom line. Diversifying the iPhone product lineup by adding higher-end models, more storage and new features, while at the same time increasing global positioning and availability, remains high on Apple’s priority list. Most recently, they have announced that they will be bringing the iPhone to the United Arab Emirates around February 15th.

In regards to the other prongs surrounding Apple’s business initiatives, pent up aggression, if only from devoted users is surmounting. The Apple TV and Mac mini have both been left dangling for some time now leaving many wondering when an update or refresh is coming, if at all anytime soon. Inevitably, due to their lower price points, most of Apple’s less expensive products seem more in tune with the current economy. Even still, this won’t sway Apple’s product roadmap as they are not developing products or scheduling releases based on current conditions. “Innovating out of a recession” is something Apple continues to believe in, not innovating for it. Their guidance doesn’t seem out of place, as Apple recently announced a record quarter posting $1.6 billion profit based on sales of roughly 23 million iPods.

While dealing with massive speculation regarding CEO Steve Jobs’ health conditions, the stock has recently taken a beating. Over the past week however, Apple shares have remained strong after falling to new 52 week lows hovering in the high seventies. Uncertainty surrounding how the company will be run once Jobs officially retires, coupled with Apple’s relative, yet understandable confidentiality while broaching the subject, keeps the stock’s volatility rate higher than it should be. The way they’ve handled the situation leaves the media entangled in endless speculation, with some analysts demanding a public appearance from the CEO himself.

Undeterred by the media and demanding tech industry, Apple has kept its secrecy at high levels. As we move forward, Apple is positioned perfectly to trek through the next 14-16 months while methodically releasing products at its own pace. They have pulled out of weighing trade shows, and are now able to retain control over another facet of their business, when and how products are released.

Perhaps Apple’s fundamental business practices will never be reflected properly through Wall Street. But if the way Apple’s stock has been behaving over the past week is any indication as to what may come when CEO Steve Jobs finally retires, it may not be as bad as most people anticipate.

Disclosure: Long AAPL

A Perfect Example of How Steve Jobs’ Health Issues Are Exploited

Aviv — Tue, 27 Jan 2009 12:48:43 +0000

Since we first launched MacBlogz there there hasn’t been a shortage of Steve Jobs health concern stories. The latest however, sheds a bright light on how the media and our culture is exploiting the information, digging deeper into Jobs’ private life and ignoring his specific requests.

On nothing more than a drunken source, the Silicon Valley gossip site Valleywag reported that Apple CEO Steve Jobs was in the hospital undergoing a surgical procedure. “At a party in Silicon Valley last night, a Stanford staffer who had just come from the hospital told friends, including our source, about the “extra special care” being afforded their famous patient,” Valleywag explained. “The specific procedure Jobs was checked in for wasn’t relayed by the chatty Stanford employee.”

Luckily, this time every site in the galaxy didn’t pick up the shaky story, and it only made minor rounds before being debunked.

A while after the Valleywag story was published, two corroborating stories from Silicon Alley Insider and TechCrunch both explained that Steve Jobs was in fact not undergoing surgery. “Our own source, who is significantly more believable than some person at some party, says Jobs is in the office today in meetings and most definitely not undergoing surgery,” TechCrunch explained. In response to the original story, SAI claimed, “A Valley source tells us this is wrong. “He was in Apple meetings today, as a matter of fact. Valleywag is 100 percent wrong.”

How or why would Valleywag publish such a story? And why would other reputable sites pick up the story? We can’t assume it’s being done with ill intentions, or with any particular reason to harm the stock price. But a certain level of responsibility is assumed once a level of public visibility is reached. It is known that a simple call to any hospital won’t fetch any confidential information, and if the person being cared for is Steve Jobs, expect an extra level of secrecy at the very least.

Over the past few weeks, reports regarding Jobs’ health have grown heated. After pulling out the Macworld Expo, then two letters directly from Apple (here and here), the media still wasn’t done. Most recently, Wired’s “Image Viewer” website was subject to some bogus Steve Jobs heart attack rumors. And that’s not the first time either. Back in early October 2008, the SEC launched an investigation into a false Steve Jobs heart attack rumor that made the stock take a nasty dive.

Who or what benefited from any of these reports? Was anything learned? Nothing aside from curiosity and pure paparazzi like writing (on both sides), was exchanged. In regards to the most recent stories, one side claims a source explaining that Jobs is undergoing surgery, while the other claims he’s in the office. How this holds relevance to anything pertaining to Apple as a company is still up in the air.

There’s no denying that it seems like Apple isn’t being entirely forth coming with the information regarding Jobs’ health. But at a certain point, prying into the man’s private life and reporting about a rumored surgery becomes a tad questionable. Demanding a public appearance is equally unnecessary, and as Jobs has personally asked the media to do, he should be left alone and given room to focus on recovering. When the time is right, Apple will share the information. Until then, if you’re a shareholder or an investor, nobody is holding a gun to your head forcing you to keep the stock. If you see Apple’s core business models and believe that the company is a worthy competitor in the marketplace, then your decisions should be easy. If you pray that Jobs will be around forever to unveil products at events, hoping that another blockbuster device will boost the price back up to $200, don’t hold your breath.

Apple Shares Bounce Back on Record Breaking Quarter

Aviv — Wed, 21 Jan 2009 22:18:03 +0000

Apple shares are bouncing back in after hours trading today, after taking a hefty beating on shaky news related to CEO Steve Jobs’ health. News delivered from Apple in the Q1 2009 Financial Earnings Call has revealed another record breaking quarter for the company.

As the specific numbers state, Apple’s iPod has become an incredibly well received product, most notably the iPod touch. While it may have cannibalized some iPhone market share, the sales are enough to boost earnings, which as it currently stands is reflecting positively on Wall Street.

After serious shareholder and investor concern grew louder and louder over Steve Jobs’ health, beating Apple’s stock price down in the process, a positive quarter was not expected by many analysts. Consequently, Apple shares hit a deep low dipping back into the high-seventies, a scary 52 week drop.

For the fiscal quarter, which ended December 27, 2008, Apple specifically posted record breaking numbers making it the most successful quarter in the company’s history, in terms of revenue. They posted a record $10.17 billion revenue and record net quarterly profit of $1.61 billion (or $1.78 per diluted share). The quarter directly one year ago contained numbers of $9.6 billion in revenue, and a net quarterly profit of $.158 billion (or $1.76 per diluted share).

This record breaking first quarter boasted sales of 2,524,000 Mac computers, showing nine percent growth over the previous quarter. The company had also seen record breaking iPod sales with a whopping 22,727,000 units sold, representing 3 percent growth. Additionally, 4,363,000 iPhones had been sold this quarter displaying an exemplary 88 percent unit growth over the year-ago quarter.

On the news that Apple delivered today, shares are confidently strong in after hours trading. Hopefully the confidence felt throughout Wall Street will be enough to hold Apple shares after rather disappointing iPhone sales have been shared.

It’s evident that Apple’s business models are doing great, even in times of economic uncertainty. What happens moving forward with the iPhone family product lineup should be of major importance to Apple. Diversifying the iPhone lineup and aggressively increasing market share, while broadening global positioning should be at the forefront in 2009.

Apple Posts Record Quarter, $1.6 Billion Profit for Q1 2009

Aviv — Wed, 21 Jan 2009 22:04:45 +0000

Apple has posted some record numbers pertaining to first quarter revenue in 2009. Most notably, 22,727,000 iPods were shipped making this is the company’s most successful quarter ever recorded.

For the fiscal quarter, which ended December 27, 2008, Apple specifically posted record breaking numbers making it the most successful quarter in the company’s history, in terms of revenue. They posted a record $10.17 billion revenue and record net quarterly profit of $1.61 billion (or $1.78 per diluted share). The quarter directly one year ago contained numbers of $9.6 billion in revenue, and a net quarterly profit of $.158 billion (or $1.76 per diluted share).

“In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone™ and Apple TV® over their economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $11.8 billion of “Adjusted Sales” and $2.3 billion of “Adjusted Net Income.”

“Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history—surpassing $10 billion in quarterly revenue for the first time ever,” said Steve Jobs, Apple’s CEO.

“Our outstanding results generated over $3.6 billion in cash during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion and we expect diluted earnings per share in the range of about $.90 to $1.00.”

This record breaking first quarter boasted sales of 2,524,000 Mac computers, showing nine percent growth over the previous quarter. The company had also seen record breaking iPod sales with a whopping 22,727,000 units sold, representing 3 percent growth. Additionally, 4,363,000 iPhones had been sold this quarter displaying an exemplary 88 percent unit growth over the year-ago quarter.

Reminder: Apple Announcing Q1-2009 Financial Results

Aviv — Tue, 20 Jan 2009 22:53:09 +0000

Apple’s 1st quarter-2009 Financial Results Conference Call will begin Wednesday, January 21, at 2:00pm PT/5:00pm ET. If you are planning on listening to the webcast, please make sure you have QuickTime installed before the event begins.

Please note that comments made during this call may include forward-looking statements that are subject to risks and uncertainties, and that actual results may differ materially from these forward-looking statements. For more information on the factors that could influence results, please refer to Apple’s SEC filings.

Apple Market Data: Mac and iPod On the Rise, iPhone Sales Slow

Aviv — Tue, 20 Jan 2009 21:33:07 +0000

Reports regarding Apple’s overall sales have been making the rounds today. Morgan Stanley is issuing reports that iPhone sales have dropped significantly in the 4th quarter, while Piper Jaffray analyst Gene Munster reports healthy rises in nearly everything but the iPhone.

According to a new survey published by Morgan Stanley, Apple sold 1.75 million iPhone in the United States last quarter alone. Compared to Morgan Stanley’s 3rd quarter numbers, which reflect 2.3 million iPhones being sold, this is a 24% drop in units actually being moved. Morgan Stanely reiterates that sales of Apple’s iPhone dropped sharply during the Christmas quarter, when compared to sales of the September quarter when the device was originally released.

In a parallel report, long time Apple analyst Gene Munster (based on data from from market research firm NPD) told clients that Apple’s Mac and iPod product lines saw a nearly 10% rise in sales in the 4th quarter. When compared to the previous November quarter, both product families seemed to bounce back for healthier than expected sales.

What this means is that Apple really needs to begin diversifying its iPhone line. By lowering the price of the current 8GB iPhone 3G, making way for some new high-end features in more expensive models and continuing their push with global positioning, the iPhone would most likely bounce back from sluggish sales. In this economy, Apple should be making the current models cheaper, while adding on to the top-line of the iPhone product family. The early adopters like us will continue to shell out full price for more advanced features and hardware, and by reducing the cost to consumers, the bottom line benefits in turn.