Apple routinely touts the number of applications people have downloaded from the App Store, but it doesn’t say how much money it makes from the online clearinghouse for iPhone and iPod touch software. Bernstein Research has taken a whack at estimating App Store sales and, while the dollars are mere crumbs to Apple, they are growing quickly.
I see a trend.
Back in July, I wrote a post based on a Bernstein Research report which considered the question of whether the Apple iPhone has been a blessing or a curse for AT&T, citing among other factors the strain the data-happy iPhone users are placing on the company’s 3G network.
It’s almost impossible to believe, but there it is: the cable industry is actually outgrowing the wireless sector.
This stunning factoid comes courtesy of the latest Weekend Media Blast piece from Bernstein Research analyst Craig Moffett.
There has been speculation for months now that Dell at some point will make a big acquisition. Most of the thinking has been about diversification moves. But Bernstein Research analyst Toni Sacconaghi proposes an idea that would boost Dell’s stake in the PC business: consider buying Acer.
One odd thing about the current state of the wireless phone market is that while demand for handsets seems to be in free fall–Canaccord Adams’s latest forecast, for instance, has 2009 units down 26 percent–the U.S. wireless carriers all seem fairly upbeat on their growth prospects for 2009.
Not a good day for eBay shares, which are down 23 percent for the year to date, and now sit at their lowest level since 2001.
Highlighting the problem of counterfeit merchandise sold on the site, Bloomberg reports that the company provided a tip to German police that triggered the seizure of 20 tons of knock-off designer clothing last month. While it is certainly good to see eBay taking an aggressive posture on fake goods, the company clearly has an issue to resolve here.
The Street seems to be backing away from the theory that Apple will introduce a cheaper version of the iPhone with a smaller screen and reduced functionality.
Yesterday, Bernstein Research analyst Toni Sacconaghi noted that the company does not appear to be pursuing his idea for an “iPhone Nano,” and that any new iPhones are likely to include both a browser and access to the App Store.
Bernstein analyst Jeffrey Lindsay is bullish on China-based companies Baidu and Sohu. He says that recent fears about the Chinese market–fueled by the economy and recent Web controversies–are unfounded. Lindsay believes that even in an economic slowdown, there’s enough growth in the domestic market to fuel both companies.
Bernstein analyst Jeffrey Lindsay has cut his ratings on both Amazon and eBay, noting that the large majority of goods on both sites are discretionary purchases, and that–of course–the current environment has people focusing more on worries about unemployment and home foreclosure than spending money on nonessential goods.
Who knows what to make of a day like this one? The market jumped back and forth over the flat line countless times, then staged one of those crazy end of the day runs that have become so much a part of the current market pattern. The Nasdaq Composite finished at the high for the day, up 97.49, or 6.5 percent, to 1596.70. The Dow finished up 552 points, or 6.7 percent, to 8835, or 900 points above the low for the day, after briefly dropping below the 8000 level.
Comcast’s earnings get announced before tomorrow’s opening bell, but the company has a couple of things going for it that might be helping analysts predict what those numbers will look like. First, 70 percent of consumers prefer bundling, and currently only cable can offer it. Second, even as we head into a recession, broadband and video are considered “no more discretionary for most families than running water.”
Voters who use only a wireless phone are being undercounted by political pollsters. Given that these voters skew young, that young voters (according to USA Today) favor Barack Obama over John McCain by a margin of 61 to 32 percent, and that many polls don’t include wireless phones in their samples, it seems there would be a discrepancy in poll results–leaning toward the Republican hemisphere. Don’t forget to vote, my friends.
Yahoo (YHOO) reports Q3 results next Tuesday. Brace yourselves for something ugly.
Late Tuesday, Bernstein Research analyst Jeffrey Lindsay provided a pre-announcement update on the prospects for the quarter, and he is not optimistic.
Bernstein Research hardware analyst Toni Sacconaghi this morning upgraded his rating on Apple (AAPL) to Outperform from Market Perform, while cutting his price target on the shares to $135 from $175.
“We believe that the stock is overly discounted, that Apple’s short-term financial are likely to remain relatively healthy despite economic weakness and that the company’s longer-term growth story remains intact,” he wrote in a note this morning.
The Street continues to ratchet down its expectations for Google (GOOG) ahead of the company’s third-quarter earnings coming up next Thursday.
While continuing to recommend the stock, analysts at both RBC Capital and Bernstein Research today trimmed both their earnings estimates and price targets for the Internet search giant. That follows similar moves by analysts at Stifel, Morgan Stanley, AmTech and Collins Stewart.
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