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Apple (AAPL : NASDAQ : $332.04, Net Change: -$6.00, % Change: -1.77%, Volume: 18,804,399
Canaccord Genuity Technology Analyst T. Michael Walkley attended CEO Steve Jobs’ keynote at Apple’s Worldwide Developer Conference in San Francisco on Monday and came away impressed with new product announcements, including MacOS Lion, iOS 5 and iCloud. He believes the offerings reinforce Apple’s leading vertically-integrated hardware/software ecosystem. In particular, he believes iCloud’s ability to automatically and seamlessly integrate applications, data, photos and video files across Apple’s full line of iOS and MacOS Lion powered devices should drive increased customer loyalty, resulting in recurring software and hardware purchases.
During the keynote, Apple executives highlighted several impressive operational statistics, including $2.5 billion in cumulative fees paid to iOS developers, 64% of total mobile web browsing originating from Safari, over 200 million cumulative iOS devices sold, 90,000 iPad-specific apps to date vs. less than 500 for Android Honeycomb and 25 million iPads sold since launch.
The 25 million iPads sold lead Walkley to increase his June quarter iPad estimates to 7.9 million units, resulting in him raising his 2011 pro-forma EPS estimate from $23.51 to $24.31 and his 2012 estimate from $26.69 to $26.97. With his checks indicating strong sales of both iPhone and iPad globally and the ramping iOS ecosystem driving longer-term replacement sales, he believes Apple will maintain dominant value share of both the tablet and smart phone markets, driving healthy long-term earnings growth.
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