This week we look at Apple's under-priced shares and the latest news in tech. Read on for all this and more in the fourth edition of Fresh Insights (delivered 17 June 2011, subscribe to get it fresh).
Why Apple Is A Steal
Five years working for iFix and I never owned an Apple product. Until now.
My new iPhone 4 is a beautiful harlot: it sparkles, connects to any WiFi hotspot and is impossible to type on. Forgiving the retarded iTunes, here's why I would invest in Apple shares:
- Ridiculously low P/E of 15.50.
- Profits on well-designed, over-priced products.
- $65bn in cash.
- iOS 5:
- All your data are belong to Apple with iCloud.
- iMessaging will kill the SMS cartel.
- Has all the best Android features.
Steve is still alive, so I'd wait for the irrational market to undervalue Apple when he steps out and buy at the trough.
Headlines
Facebook Plans $100bn IPO
Facebook will have to file for an IPO when it hits the 500th-investor mark later this year. This ostentatious event is scheduled for May 2012. Facebook is winning the eyeball-wars and is still way under-monetised. The social network's lofty valuation will be justified when it takes a stab at PayPal with Facebook currency.
Pandora Share Price Plummets
Online music is a doomed space for profitless online radio service Pandora, which IPO'ed at $16/share. First-day trading boom pushed shares as high as $26, but by the second day the price had dropped to $13.26. When was the last time you listened to the radio?
Windows 8 Coming September 2012
Microsoft carefully timed the video preview of their latest Windows 8 user interface exactly one week before Apple showed us their Pokémon with the ridiculously awesome iOS 5. I remain bullish on Microsoft and foresee Windows carving out a larger smartphone market share than Apple in the long run, but with fewer profits.
Apple Sued Over iCloud Name
iCloud Communications is suing Apple for infringing on its trademark in a genius PR stunt that actually has merit. Apple does not own every word with an i in front of it and has a history of trademark missteps. The plaintiff will likely settle for an obscene amount of money and change their name, while retiring to a quiet island far from the IRS.
Developers
I host a fortnightly developer dinner in Cape Town for software professionals. Thanks to Paul Cartmel of New Media Labs for graciously sponsoring this week's event. They are hiring, so get in touch if you're smart and get things done.
Stay Tuned
If you read this far, follow me on Twitter and stay tuned. Next week we look at ten criteria for choosing an awesome domain name and speculate on more IPO shenanigans.
Best
Petrus
freshcode.co
@FreshCode