AppleInsider reports with a multinational iPhone 3G launch now successfully under its belt, Apple is preparing to close out the year with a final phase of product introductions that will stretch over the course of the next two months. Included on the co's roadmap are new iPods, overhauled notebooks, and refreshed iMacs, according to people familiar with the situation. They say availability of those products should follow that particular progression, with a handful of ancillary announcements staggered in between. It will all kick off in September with an event believed to be tentatively scheduled for the second week of the month. Cheaper and slightly modified iPod touch players, new iPod nanos and related service announcements are expected to take center stage, as Apple emphasizes a particular focus on pushing adoption of its fledgling multi-touch platform and App Store. However, and despite on-and-off-again background noise, the event will not give birth to a new breed of handheld multi-touch device, those familiar with Apple's plans say. At the same time, the scope of the event remains somewhat of an enigma. Internet reports have failed to pinpoint a precise agenda, as it's unclear whether the event will dual as a launch pad for Apple's next-generation Mac notebooks, or whether those systems will be presented at a separate forum.
WSJ reports iTunes has been the runaway hit of the music business but a growing number of record cos are trying to steer clear of Apple's behemoth music store, because they say selling single songs on iTunes in some cases is crimping overall music sales... Avoiding iTunes runs against the conventional logic of the music industry, where it's now taken as an article of faith that digital downloads will eventually replace CDs. But there is growing discomfort with the dominant role iTunes already plays: The store sells 90% or more of digital downloads in the U.S., according to people in the music industry. Label executives, managers and artists chafe against the iTunes policy that prevents them from selling an album only. ITunes, with few exceptions, requires that songs be made available separately. Consumers strongly prefer that, though Apple also typically offers a special price for buyers who purchase all the songs on an album. Some artists see their albums as one piece of work, and don't want them dismantled. Their handlers believe they can make more by selling complete albums for $10 to $15 than by selling individual songs.
Reports Q2 (Jul) earnings of $0.21 per share, excluding reserve, $0.12 worse than the First Call consensus of $0.33; revenues fell 4.1% year/year to $11.76 bln vs the $11.71 bln consensus. Comparable store sales declined 6.7% while Kmart's comparable store sales declined 5.6%. Total domestic comparable store sales declined 6.2%.
Jefferies is raising their price tgt on SOLF to $22 from $18 after the co reported Q2 results. Firm believes that higher wafer prices will recede in Q4 as the effects of vertical integration and LT wafer contracts begin to take hold. Firm also cites a "smart" strategic investor, key senior management hires, and a new silicon contract may herald positive operational momentum.
The Wall Street Journal reports Toyota (TM) slashed its global sales target for next year, its latest setback after cutting its sales projection for this year a month ago. Toyota said Thursday that it cut its world-wide sales outlook for 2009 to 9.7 mln vehicles from its previous expectation of 10.4 mln vehicles that it outlined a year ago. Still, the new target for 2009 represents 2% growth from the co's projected sales for 2008. The numbers include sales and production at its subsidiaries -- Daihatsu Motor and Hino Motors. TM took a cautious approach to its prospects for sales in the U.S., Europe and Japan amid the gloomy global economic outlook. The downgrade in its 2009 sales forecast follows a cut in its global sales target last month to 9.50 mln vehicles for 2008 from as it reduced its sales expectations for the U.S., Europe and Japan. By region, Toyota cut its sales plan for North America -- its biggest market -- to 2.7 mln vehicles for 2009, compared with 3.0 mln in its previous target. For the domestic market, the co lowered its sales projection to 2.25 mln from 2.4 mln. In Europe, it cut its sales plan to 1.3 mln vehicles from 1.5. mln. It lowered its Asia sales outlook at 1.8 mln vehicles from 1.9 mln vehicles. But it hiked its sales projection for Latin America and other markets to 1.70 mln from 1.65 mln.
Rodman & Renshaw notes AMLN hosted a conference call with LLY to discuss the recent FDA alert related to a potential association between Byetta and pancreatitis (Recall that ALKS technology is used inthe 2nd-generation Byetta LAR formulation). Positively, mgmt stated these deaths were likely the result of complicating medical conditions, with two deaths occurring in patients experiencing complications following gallbladder surgery and a third in a patient suffering a relapse of leukemia. Recall that the Byetta label has included information about pancreatitis since 2006 and in October 2007 the FDA amended the Byetta label to include pancreatitis in the precautions section. Language was also added to the label providing physicians with information related to the detection of suspected pancreatitis and the appropriate steps that should be taken. Following this new FDA alert, the agency stated that it was working with Amylin and Eli Lilly to add stronger and more prominent warnings in the Byetta label specifically related to the risk of acute hemorrhagic or necrotizing pancreatitis... Leerink Swann notes AMLN/LLY announced four additional deaths of patients who had taken Byetta. Firm believes none can be reasonably associated with Byetta. Even with these additional cases, firm says the expected risk of pancreatitis among Byetta users is still lower than typically expected for diabetics. Firm believes the FDA is continuing its recent obsession with avoiding safety risk and any potential political blame at all costs. Firm would view an on-time approval in Sept of the Byetta monotherapy indication as a significant positive catalyst suggesting the FDA sees pancreatitis as background noise and that it plans to continue with business as usual, including its Byetta LAR review... Citigroup notes the disclosure of 4 additional deaths on Byetta will continue to provide bad press for Byetta and LAR. The concerns about pancreatitis may sour the appetite among primary care physicians and will lead to higher dropout rates in patients with abdominal pain with nausea and vomiting (ie suspected pancreatitis). Firm continues to believe that investor expectations for Byetta and LAR are too high especially with new upcoming safety warnings.