Apple has just chosen Samsung, over LG and Sharp, to be the sole provider for the new iPad's touchscreen. The new iPad goes on sale on March 16th with it's updated and sharper 9.7 inch screen which has four times as many pixels as the previous version. Apple may almost double spending on screens for tablets and smartphones this year, according to iSuppli. Samsung already makes the chips that power the iPhone and iPad. Why does it seem like Apple and Samsung are strange bedfellows? Well, as of April last year, these companies are suing each other worldwide over patents regarding mobile technology and design. I think this gives a new meaning to the term "coopetition"!
The juggernaut continues and it's within the realm of possibility that Apple's market cap will reach $1T in the near term! Today it's half that but look at the stats - $100B in cash, $50B in expected profit for the year ended September (50%+ more than the last FY), net margins of 28% last Quarter, iPad3 announcement next week the experts think, and Tim Cook's hint that dividends may be in the offing. Why didn't I invest in Apple stock rather than that new car (depreciating asset) in 2007, or 2010?? Perhaps I'll sell it, take the bus, and invest now!
Chartwell Principal David J Snell on Strategy, Sales, Marketing and High-Technology with a focus on Mobile.