The Zacks Analyst Blog Highlights: Apple, Google, Hewlett-Packard, Cisco Systems and - Press Releases

For Immediate Release

Chicago, IL - December 6, 2011 - announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple Inc. ( AAPL ), Google Inc ( GOOG ), Hewlett-Packard Co. ( HPQ ), Cisco Systems Inc. ( CSCO ) and Inc. ( AMZN ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Monday's Analyst Blog:

Apple Fails to Get Injunction in U.S.

Apple Inc. ( AAPL ) suffered its second major setback of the week, as the U.S. District Court in San Jose, California, denied Apple an injunction bid to ban Samsung's smartphones and tablets in the US. According to the ruling, the court granted Samsung the right to sell its products in the country until the case goes to trial next year.

This is the second jolt to Apple, coming close on the heels of the Australian Federal Court ruling. On November 29, the Australian court ruled in favor of Samsung Electronics, clearing its way to sell the Galaxy 10.1 tablets in the country after the temporary ban ends on Dec 9.

The companies have been at loggerheads since April, suing each other over 30 patents across four continents. Apple's lawsuits are mainly targeted at design-related issues, while Samsung's lawsuits primarily focus on technology patents.

While the bans provided iPads with opportunities to capture consumer mindshare, these setbacks will likely tax the company. The look and feel of the iPad is a competitive differentiator and with these differences receding, Samsung is going to find it easier to compete with Apple. Additionally, there is always the fear that other courts may rule along the same lines.

Both verdicts have come at an opportune time for Samsung, since holiday sales are currently in full swing. Apple intended to stop Samsung from claiming their share of gains and wanted to enjoy the seasonal sales all alone in the U.S., which also happens to be Apple's primary market. However, it now appears that Apple's dominance in these markets could be threatened, while Samsung makes hay.

Apple has also been trying to stall the growth of Google Inc's ( GOOG ) Android OS. Samsung is leveraging on Android to become one of its most significant competitors and the company is already the largest vendor of Android-based products. The fact that Android is expected to continue its very strong growth all over the world is a major headache for Apple.

The latest report from Gartner suggests that Samsung became the top smartphone manufacturer worldwide as sales tripled year over year to reach 24 million in the third quarter of 2011. On the other hand, Apple shipped 17 million iPhones in the same period, a year-over-year increase of 21%, but down nearly 3 million units from the second quarter of 2011.

Additionally, in the third quarter of 2011, market share of Android OS had almost doubled from the year-ago quarter to 52.5%. Meanwhile, Apple's iOS had a 15.0% share, which declined from the previous year (16.6% in 3Q10).

However, Apple is expected to bounce back in the fourth quarter, going by the strong pre-order numbers for iPhone4S that came in right in the first weekend after its announcement. Emerging markets such as Brazil, Mexico, Russia and China are becoming more important to Apple, representing 16% of overall sales.

Apple has been impressive with its robust Black Friday sales in the domestic market, but its smartphone and tablet markets are crowded with the likes of Hewlett-Packard Co. ( HPQ ), Samsung, Cisco Systems Inc. ( CSCO ), Toshiba and Acer, among others, which are gaining popularity in several international markets. Additionally, Inc. ( AMZN ) stepped into the intensely competitive tablet market with the launch of its first media tablet: "Kindle Fire".

Some analysts expect the lower-priced Kindle Fire to gain traction in the tablet market for the varied services and content offerings. Others believe that the company may not gain ground versus Apple just yet, although it could get other tablet makers to review their pricing. However, so far, Apple has managed to maintain its leadership position in the tablet market and enjoys a very strong position in the smartphone market as well.

Nonetheless, the impending lawsuits in different countries will remain an overhang on the stock going forward.

We also believe that Apple's ability to innovate and grow in developing nations, where the market is more cost-sensitive, will determine the company's fortunes in future.

We maintain our Neutral rating over the long term (6-12 months). Currently, Apple has a Zacks #2 Rank, which implies a 'Buy' rating in the near term.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at .

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

APPLE INC ( AAPL ): Free Stock Analysis Report

AMAZON.COM INC ( AMZN ): Free Stock Analysis Report

CISCO SYSTEMS ( CSCO ): Free Stock Analysis Report

GOOGLE INC-CL A ( GOOG ): Free Stock Analysis Report

HEWLETT PACKARD ( HPQ ): Free Stock Analysis Report

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More