Google @ $568.50, -$11.95 (-2.06%)
Nasdaq 100 @ 2517.18, -42.03 (-1.64%)
DJIA @ 12411.23, -142.97 (-1.14%)
As expected Apple used its annual WorldWideDevelopersConference to announce the introduction of Apple maps which will potentially release it from the fees that it currently pays Google for the options.
Additionally it could create a small blind spot in Google's information gathering and "introduction" service i.e. searches. (http://www.independent.co.uk: Apple on route to challenge Google with map app).
"Along with Maps, Apple today announced partnerships with car companies BMW, GM, Mercedes, Land Rover, Jaguar, Audi, Toyota, Chysler and Honda – partnerships that will include, within a year or so, steering wheel buttons that will summon Apple’s virtual assistant, Siri. Imagine: Instead of plugging an address into a Garmin GPS, drivers will be able to press a button and say “Siri, take me to Grandma’s house,” and have their iPhone give them turn-by-turn directions over the river and through the woods." (http://www.forbes.com: Apple Keynote Message To Garmin, GlobalStar, Google: Get Lost!)
Potentially profitable news for Apple then, less so for Google and a huge concern for current Sat Nav manufacturers, particularly once "integration" is available from the auto manufacturers. I can see the adverts with Siri already.
But it looks like Tom Tom may have had a glimpse of its own future (and not liked it) as it agreed a deal to license its map content to Apple (http://trading.selftrade.co.uk: UPDATE 1-Satnav maker TomTom lifted by Apple deal).
With Android obviously linked to Google Maps, and now Tom Tom dovetailing into Apple Maps, that leaves very few options for the remaining Sat Nav makers other than Microsoft/Nokia, or RIM, particularly if the portability and dependency on smartphones starts to bite into the "built in" auto market.
Elsewhere: next generation Macbook Pro laptops with a new world's best in terms of screen resolution; better integration and sharing through iCloud; iOS 6 and; Siri now on iPad, completed the keynote speech from CEO, Tim Cook
So no sign yet of iPhone 5 despite the innocent timing and introduction of Samsung's Galaxy S3 in the run-up to the Apple event. You do have to admire Apple for not being pushed to release something before they are ready to, and managing the hype machine as they do.
How did the share price react?
Well it looks to have bobbled around a bit before finishing down -1.58% on the day, as US markets tumbled with a dose of European flu.
Google also fell, -2.06%, but how much is Apple Maps and how much is markets?
I'm focussing on Apple Maps though and what it might bring to the smartphone war.
In some respects its a bold move by Apple given the maturity and plaudits for Google Maps. But given Apple's traditional attention to detail (which I hope has continued post Steve Jobs), the product should be, and do, everything it suggests with the potential for more with Siri's ongoing development.
It should also help to maintain Apple's profit margins given that it provides spare strings to the bow and releases it from Google.
And, if anything, it marks another section of the boundary between the iPhone/iPad, and Android territories, whilst demonstrating a clear thought process of Apple i.e make the products work as simply as everyone wants them to, whilst ensuring that the content is there as well.
Which is the game changing strategy that matters in the often fickle world of technology.
Google also fell, -2.06%, but how much is Apple Maps and how much is markets?
I'm focussing on Apple Maps though and what it might bring to the smartphone war.
In some respects its a bold move by Apple given the maturity and plaudits for Google Maps. But given Apple's traditional attention to detail (which I hope has continued post Steve Jobs), the product should be, and do, everything it suggests with the potential for more with Siri's ongoing development.
It should also help to maintain Apple's profit margins given that it provides spare strings to the bow and releases it from Google.
And, if anything, it marks another section of the boundary between the iPhone/iPad, and Android territories, whilst demonstrating a clear thought process of Apple i.e make the products work as simply as everyone wants them to, whilst ensuring that the content is there as well.
Which is the game changing strategy that matters in the often fickle world of technology.
Think: Betamax v VHS; PC v Mac (80's); iPhone/Android v. Nokia/Blackberry; and every renewal of hostilities in the game consoles market.
Its not always the best technology that wins out but the best combination of platform and content.
So, despite pulling back from the year's high of $636.23, the shares are still up some 43% year to date and occupy 5.9% of my portfolio (May 2012: Portfolio Update.).
And, as at the last quarterly update, Apple was still throwing off huge amounts of cash which were estimated to be around $110 bn (Apple Q2 Results lead bounce back in after hours trading.).
Looking ahead, the resumption of the dividend (Stock update: Apple resumes dividends for first time since 1995.), could itself be satisfying if it grows to the $8 suggested by analysts estimates for 2013.
Certainly not in my thinking when I originally invested but $8 would be a yield close to 4% of my original investment (after 15% withholding tax of course).
Hopefully, this won't be at the expense of the capital gains that the investment has contributed thus far.
So, despite pulling back from the year's high of $636.23, the shares are still up some 43% year to date and occupy 5.9% of my portfolio (May 2012: Portfolio Update.).
And, as at the last quarterly update, Apple was still throwing off huge amounts of cash which were estimated to be around $110 bn (Apple Q2 Results lead bounce back in after hours trading.).
Looking ahead, the resumption of the dividend (Stock update: Apple resumes dividends for first time since 1995.), could itself be satisfying if it grows to the $8 suggested by analysts estimates for 2013.
Certainly not in my thinking when I originally invested but $8 would be a yield close to 4% of my original investment (after 15% withholding tax of course).
Hopefully, this won't be at the expense of the capital gains that the investment has contributed thus far.
Which itself is a concern, if the company were to be deemed as having gone ex. growth, as it is very difficult to believe that the company can continue to deliver significant growth on comparables that are just getting tougher and tougher.
But, despite concerns about Apple being able to maintain its momentum, I continue to hold them. It seems likely that there will be a time to take some (or all!), profits, I just don't know when that might be.
Related articles:
- http://www.forbes.com: Apple Keynote Message To Garmin, GlobalStar, Google: Get Lost!)
- http://www.independent.co.uk: Apple on route to challenge Google with map app
- http://www.forbes.com: Apple: Live From The WWDC 2012 Keynote; New Laptops, iOS6, OSX Mountain Lion (UPDATED)
- http://www.telegraph.co.uk: Apple WWDC: iOS 6 dumps Google Maps
- http://trading.selftrade.co.uk: UPDATE 1-Satnav maker TomTom lifted by Apple deal
Related posts:
- May 2012: Portfolio Update.
- Apple Q2 Results lead bounce back in after hours trading.
- Stock update: Apple resumes dividends for first time since 1995.
But, despite concerns about Apple being able to maintain its momentum, I continue to hold them. It seems likely that there will be a time to take some (or all!), profits, I just don't know when that might be.
Related articles:
- http://www.independent.co.uk: Apple on route to challenge Google with map app
- http://www.forbes.com: Apple: Live From The WWDC 2012 Keynote; New Laptops, iOS6, OSX Mountain Lion (UPDATED)
- http://www.telegraph.co.uk: Apple WWDC: iOS 6 dumps Google Maps
- http://trading.selftrade.co.uk: UPDATE 1-Satnav maker TomTom lifted by Apple deal
Related posts:
- May 2012: Portfolio Update.
- Apple Q2 Results lead bounce back in after hours trading.
- Stock update: Apple resumes dividends for first time since 1995.
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