Nokia's (NOK) Tablet Platform May Not be Microsoft (MSFT)

While Nokia (NYSE:NOK) has made its decision to use Microsoft's (NASDAQ:MSFT) Windows Phone 7 for its smartphone strategy over the long term, that's not the case at this time concerning its entry into the tablet computer market, with their existing MeeGo platform, which they developed together with Intel (NASDAQ:INTC), still being in play, said an person aware of the situation.

The source said the cellphone maker is still taking into consideration its options for tablets and these include MeeGo, a platform Nokia has been jointly developing with Intel.

This isn't to say Microsoft isn't still in the race for the device, but that the final decision has yet to be made, and Nokia isn't in a hurry to force it, saying they want to get their first tablet right.

Even though some say Nokia and others like Samsung, Motorola (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) and Hewlett-Packard (NYSE:HPQ) are late to the tablet game, that's nonsense, as the tablet wars are just heating up, and it appears it's going to be a long, drawn-out battle, with a lot of room for growth outside of the leader Apple (NASDAQ:AAPL).

For Microsoft, a tablet platform will be based on its upcoming Windows 8 PC operating system, rather than its Windows Phone software, and that's not due to be released until the latter part of 2012. Could it be that Nokia may release a Meego version first and then implement a Microsoft version later to see which takes hold better? Only time will tell.

Nokia was trading at $8.35, gaining $0.07, or 0.91 percent, as of 1:44PM EDT.

JPMorgan (JPM), iPad (AAPL) and (MMI) (RIMM) Tablet Bubble Bursting

With the positive response to Apple's (NASDAQ:AAPL) iPad 2, JPMorgan (NYSE:JPM) says the tablet bubble could burst, leaving competitors like Motorola Mobility (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) struggling, as they may be producing far too many tablets for the market.

JPMorgan analyst Mark Moskowitz said, "In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan."

Moskowitz believes the number of tablets being made will be at about 65.1 million, far above his original estimate of 47.9 million. He sees a potential oversupply of up to 51 percent.

"Based on our research inputs, tablet makers eager to emulate Apple’s meteoric start are trying to secure components with inflated build plans," Moskowitz added. "Of note, glass displays, processors, and, to a lesser extent, NAND Flash are the components that could be most at risk."

Consequently, he also sees suppliers of components having the most to lose in that scenario.

iPad Killers (AAPL)? Hewlett-Packard (HPQ), Research in Motion (RIMM), Motorola Mobility (MMI)

While some have been all but declaring the tablet war all but over with the introduction of Apples (NASDAQ:AAPL) iPad 2, the truth is this is just the beginning of a long, drawn-out battle, and companies like Hewlett-Packard (HPQ), Research in Motion (RIMM) and Motorola Mobility (MMI) are just getting going.

Last week, Apple's ability to raise even the simplest innovation to the level of an epiphany was once again on display.

Apple's chief evangelist, Steve Jobs, took the stage in San Francisco to unveil the second version of the iPad. It's faster, it weighs less, and it has cameras and other neat things. But the moment of revelation was when Jobs described a new polyurethane cover that Apple (AAPL) has designed for the device.

"Our engineering and industrial-design team came up with this idea of using magnets that grasp it, and auto-align it," said Jobs, his voice rising in intensity as he pronounced "auto-align," as if to convey the wonderment.

In the hands of any other CEO, that moment would have been, well, merely something or other about magnets. With Jobs' air of authority, mixed with genuine enthusiasm and a dash of frisson, the moment surpassed the best any Home Shopping Network pitchman ever had to offer.

Magnets! Of course! Who would have thought!

The performance left the Wall Street analysts in attendance duly stunned, and they promptly declared Apple well ahead of the competition in the tablet-computer wars.

In truth, the tablet war is destined to be a long, long road, and there's no turning back.




Source

Apple (Nasdaq:AAPL) Gets Review from Canaccord

Apple (Nasdaq:AAPL) continues to be viewed positively by Canaccord Genuity after their latest blowout quarterly report, which should only be a foundation for further success in 2011.

Canaccord says, "Apple posted solid fiscal Q1 (December) results, driven by continued strong sales across all product lines during the holiday shopping season. Canaccord Genuity Technology Analyst Michael Walkley notes that holiday sales of the iPad were particularly strong (7.3 million versus our 6.5 million estimate), and the iPod (19.5 million versus our 15.4 million), iPhone (16.2 million versus our 16.8 million) and Macs (4.1 million versus our 4.2 million) were all equally robust. Apple reported EPS of $6.43, well above Walkley’s $5.31 estimate and consensus of $5.37. Management guided sales of $22 billion and EPS of $4.90 for Q2/11, above Canaccord’s $21.1 billion/$4.28 estimates. Walkley anticipates solid longer-term trends for Apple in C2011 with catalysts including the CDMA iPhone launch at Verizon (NYSE: VZ) and potential announcements of iPad 2 and iPhone5 in C2011. If the rumours are to be true, Apple has also not given up on releasing a white iPhone 4. Photos leaked off the retail inventory system of Best Buy (NYSE: BBY) show both the 16 GB and 32 GB white iPhone 4 models with an in- stock date of February 27. If the white iPhone 4 does indeed launch in February, it would be 8 months after the iPhone 4 first went on sale in the U.S. But it would also be sooner than the most recent release date provided by Apple, when it delayed the white iPhone 4 yet again in October. All things considered, Walkley remains very bullish on Apple. He believe Apple’s industry-leading software ecosystem (over 120 million installed base of iOS device sales) and its leading hardware expertise will lead to a strong multi-year product cycle for its key products. In fact, based on Apple’s strong results and solid sales guidance for its March quarter, combined with expectations of strong longer-term trends for iPhone and iPad sales (with refreshes of both products expected in the next two quarters), Walkley anticipates better earnings growth longer term for Apple versus Canaccord's coverage universe."

Apple (AAPL) closed Thursday at $332.68, down $6.16, or 1.82 percent.

Apple's (NASDAQ:AAPL) Will Continue to Rise on Growing Business Says Brigantine

Citing the expected solid numbers in the latest quarter and increased guidance in distribution, Brigantine is among those who see Apple reaching the $400 a share mark.

Brigantine says, "Given the expected solid performance in the December quarter, and a bright outlook based on increased distribution dictated in the company's March quarter guidance, we see Apple's shares continuing to reflect the company's growing business. Less the $55 per share in net cash, Apple's valuation at about $291 represents 15.7x our $18.50 FY 2011 (Sept) EPS estimate. We are setting a 12-18 month $400 price target based on 16.5x our $21.00 FY 2012 and adding back the $55 per share in cash (likely a larger per share amount in 12 months). We believe the shares could be accorded an expanding valuation multiple on consistently strong growth and increased share in computers, phones, and peripherals especially at the intersection of computing and wireless connectivity."

Brigantine Advisors maintains a "Buy" rating on Apple (AAPL), which was trading at $347.62, gaining $1.94, or 0.56 percent, as of $1:48 PM EST. Brigantine has a price target on Apple of $400.

Apple (NASDAQ:AAPL) Owns Top Dollar Share for U.S. Home PC Market: First Time

Charlie Wolf, an analyst for Needham & Company, asserts Apple (NASDAQ:AAPL) has for the first time taken the top spot for dollar share of the U.S. Home PC Market, owning a 29.4 percent dollar share.

This has evidently come about from the brand and pricing power of Apple, which hasn't had to enter the price war between competitors.

Don't confuse this with unit sales, which Apple is far behind on, accounting for only 12.2 percent of the U.S. Home PC Market.

Wolf wrote in an e-mail saying that "IDC stood by its average selling

price estimate,. If Apple's average selling price were substituted for IDC's, the Mac's dollar share of the U.S. home market would fall to 20.0%, slightly less than HP's share."

Hewlett-Packard (NYSE:HPQ) accounted for 20.6 percent of dollar sales, and Dell (NASDAQ:DELL) 12.9 percent.