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Apple, Cisco, Microsoft, Google and Disney


Published on 2010-09-02 06:15:30 - Market Wire
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CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Apple Inc. (Nasdaq: [ AAPL ]), Cisco Systems (Nasdaq: [ CSCO ]), Microsoft Corp. (Nasdaq: [ MSFT ]), Google (Nasdaq: [ GOOG ]) and Disney (NYSE: [ DIS ]).

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Here are highlights from Tuesdaya™s Analyst Blog:

What to Expect from Apple Wednesday

Apple Inc. (Nasdaq: [ AAPL ]) has sent out invitations to the media and analysts to its technology event scheduled to be held in San Francisco tomorrow, September 1st. The company has traditionally used this platform to unveil new products and revamp or refresh its existing products -- particularly the iPod and iTunes lines -- for the holiday season.

Although the company has remained silent regarding the products to be announced, it is widely believed that Apple will use the event to announce major upgrades to its products, which is making the stock price volatile. Following the event, Applea™s shares could move in either direction.

We believe the event will be considerably important as Applea™s new product launches will be a thing to watch out for. The products speculated to be available are summarized below:

Refreshed iPod Line?

New products and services could include an updated or refreshed iPod Touch multimedia device with digital front- and rear-facing cameras and a higher-resolution screen. The refreshed iPod Touch could also include certain iPhone 4 technologies, such as FaceTime video chats over Wi-Fi networks, and may also come with a 3G data connection and prepaid Internet access for video recording capability, according to analysts. Apple could also add new features to its iPod Nano.

Applea™s iPod line (iPod Touch, Classic, Shuffle and Nano) consists of portable digital music players. Although the iPod constitutes a very small portion of its revenues, Applea™s resurgence has been driven by the tremendous success of its iPod portable music and video players and iTunes online store.

Apple's share of MP3 players in the U.S. was over 70% in June 2010 and it continues to gain share in most international markets, including the U.K., France, Germany, Italy, Japan, Canada and Australia.

Applea™s iPod remains popular and the company plans to compete fiercely with Cisco Systemsa™ (Nasdaq: [ CSCO ]) Flip Mino, and Microsoft Corp.'s(Nasdaq: [ MSFT ]) new Zune HD player through its refreshed and new and cost effective iPod line. The continued mix shift toward iPod Touch is expected to result in an overall iPod ASP increase in 2010 and beyond.

Updated Apple TV?

At the event, Apple could also unveil a new redesigned Apple TV set top box (called iTV by some analysts), priced at $99 (original price $299) and built around its new iOS and the app store. The addition of the iTunes App Store is expected to expand its market share.

Apple TV growth has been sluggish so far, mainly on account of the increasing competition from cable and satellite providers, which began offering DVR services with digital cable in one set-top box for free or at monthly subscription rates that were heavily subsidized and at no upfront costs.

Apple could launch an all-in-one portable model (TV, set top box and connectivity) with a free subscription, offering several TV shows and other programs. According to analysts, the long-term potential of this product is very strong, given that with connected TVs gaining traction software will be a key driver of sales. Moreover, Apple will be able to compete against Google (Nasdaq: [ GOOG ]), which is pushing Google TV and its own operating system for getting web content into televisions.

Apple may also update its line of entertainment products and offer a new service of television episodes for 99 cents in rentals from Disneya™s (NYSE: [ DIS ]) ABC network, among others.

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