(case is clear)
If you’d like one for your iPhone, regardless of where you bought it or which carrier you use, just send us an email with your name, company name and address and we’ll mail it out to you!
iPhonecase@mc2wi.com
Or stop by our office at:
1106 South 1st Street
Milwaukee, WI 53204
(414) 276-2200
As simple as that. No strings attached – our gift to you.
[youtube=http://www.youtube.com/watch?v=MytIzhssHZk]
Sprint (S) has been on a seeming death spiral for the past six years. While a decade ago, Sprint was lauded as having the best wireless technology with its CDMA network, the company squandered its lead and now rests as a distant number three player in the U.S. wireless market. Its acquisition of Nextel should go down in history as one of the worst ever in tech-land. Nextel operated an entirely different network technology called iDen, which wasn’t compatible with Sprint’s CDMA network architecture. That mistake was costly, sending S stock from the $25 range to around $2.45 today.
A few smart investors have recently begun warming up to Sprint stock, however. On the surface, offering iPhones and improving customer service has improved the number of subscribers, both positives for Sprint longer term. And while it may take a long time to happen, I aim to argue why it is possible that in three to five years time, Sprint could easily be a 3 to 5 bagger.
Basics:
| Stock Price | $2.45 |
| Market Cap: | $7.3BB |
| Debt, Gross | $20.3BB |
| Debt, Net of Cash | $14.5BB |
| Total Enterprise Value | $21.8BB |
| EBITDA 2011e | $5.0BB |
| EBITDA 2012e | $3.6BB |
Company Description:
Sprint is the number three wireless carrier in the U.S., behind the behemoths at Verizon (VZ) and AT&T (T). Here are the market share numbers for the major national wireless carriers:
| Verizon | 40% |
| AT&T | 32% |
| Sprint | 15% |
| T-Mobile | 12% |
Today, Sprint has approximately 33mm post paid subscribers, with total subscribers of around 56mm (including less profitable Boost/pre-pay subs). The company has operated two separate networks– the old Nextel iDen network, and Sprint’s existing CDMA network– since that merger in 2006. Supposedly the iDen network will be phased out starting in 2013, which should help boost margins substantially. Right now, EBITDA margins at Sprint hover around 18%, by far the lowest of the bunch, and well below its 33% margin levels back in 2007.
The biggest carriers, AT&T and Verizon, operate efficient GSM and CDMA networks respectively, and generate EBITDA margins well above 35%. T-Mobile is in the middle at around 25%.
As far as net add trends, Sprint is finally starting to stabilize its base of wireless customers. The company lost 2-3mm net subscribers roughly each year from 2006 to 2009, and is finally turning the corner with net add growth this year and last year. Additionally, with the iPhone launched this October, Sprint will likely accelerate its net post-paid subscriber growth. For years iDen customers have been slowly churning off the network, but CDMA customer growth has finally started to more than offset that.
There is more good info from the company’s most recent quarterly report here.
Clearly, with the iPhone hitting in Q4 and Sprint reporting record subscriber adds that month, the company should report solid adds in Q4. The next question is, will financial results improve?
Historical and Projected Results
Going back to 2008, Sprint generated EBITDA of $7.7BB. This has steadily declined, and in 2011 I expect full year EBITDA to hit an even $5.0BB. The bad news is, with Sprint’s anticipated spending on 1) its Network Vision plan (to essentially get rid of the iDen network, upgrade to LTE, and migrate everything to its CDMA network), as well as 2) iPhone subsidies as growth in subs improves, Sprint will see worsening margins and EBITDA next year.
In fact, in 2012 Network Vision is anticipated to reduce EBITDA by $1.1BB, and the handset subsidies for iPhones will further reduce EBITDA by another $1.1BB. Taking $5.6BB in Q3, runrate EBITDA growing it by 3% (lower than the guided 10% number), and subtracting this $2.2BB in margin impacts implies that Sprint will do around $3.6BB in EBITDA next year. (I wasn’t sure how management expects to grow core EBITDA by 10% when its long distance business tends to decline by around $200mm per year. Hence I used the 3%.)
In 2013, the drag from the Network Vision spending abates, meaning EBITDA should improve by $1.1BB, to around $4.7BB. However, in 2014 management forecasts that Network Vision will produce meaningful savings, almost $2BB. Without 2 networks to operate, it seems plausible that Sprint can attain these projected cost savings. The iPhone benefits don’t really kick in until 2015 on an EBITDA basis, as every year prior to that the subsidies eat up more costs than incremental revenue.
Risks
First of all, the risks here are real. The company is highly levered with roughly $15BB of net debt. With expectations for EBITDA to be around $3.6BB next year, 2012 leverage (Debt/EBITDA) should be around 4.2x. For businesses that are worth between 5.0x – 6.0x EBITDA, that is a lot of debt.
Liquidity is the biggest risk in 2012 and 2013. It just raised $4BB in debt, paid down its 2012 maturities, but then added to its cash commitments with the recent Clearwire agreement. Here is a breakdown of cash burn, as well as liquidity at the firm:
Management intends to keep a minimum cash balance of $2BB as stated on its recent call, so the cash balance forecast in 2013 of negative $1BB indicates that the company needs to borrow about $3.0BB MORE to fully fund its Network Vision plan, as well as to fund operating losses and iPhone subsidies. This is the high end of its projected range of additional capital needs.
Bankruptcy risk is real in the event that capital cannot be raised and operating results worsen more than expected. Another problem is that its $2.4BB revolver matures in October 2013. While it’s undrawn today, by maturity it likely will be drawn down, and there are also $1.1BB of LCs (letters of credit) that need to get rolled into a new facility. I think this facility is extendable, but the banks are currently unsecured (with only subsidiary guarantees), and I would bet– somewhat worried.
Sprint’s bank facility also has a total leverage test (Debt to EBITDA) of 4.0x in 2013, which I personally think the company remains in compliance with (3.74x above), but only because of phone subsidy add-backs to EBITDA (under its amended bank docs) of up to $1.7BB per year. But they are going to be very close.
iPhone Deal
Management has been somewhat cagey with details on the iPhone deal given that they are bound by confidentiality. Basically, Sprint is guaranteeing $15.5BB in purchases of iPhones over the next 4 years. At $625 per phone, that equates to 6.2mm iPhones purchased by Sprint every year for 4 years. Consumers generally pay either $199 or $299 for a phone, and Sprint picks up the balance– call it around $375 per phone ($625 less a $250 average price).
For Q4 this year, management guided to a $600mm hit to EBITDA from iPhone subsidies, which at $375 equates to selling 1.6mm iPhones in Q4. That is obviously a run rate of 6.4mm iPhones per year. If the company’s contract requires minimum purchases by Sprint of 6.2mm iPhones per year, it could get ugly for S if it doesn’t meet this minimum. Management comments suggest that Q4 was a very good quarter for Sprint iPhone sales, but it may not be a sustainable run rate. Personally, I am not sure this was such a great deal for Sprint. The company needed this phone to survive, and Apple (AAPL) used this leverage to cut this deal. Reports suggest that Sprint will pay the highest subsidy to Apple of the big 3.
Competition
If you look at AT&T and Verizon Wireless, each have market caps well north of $100BB. Sprint has a meager $22BB market cap, $15BB of which is debt. For $7BB, investors can get a cheap option on a convergence of these three carriers. Because, three to four years from now, Sprint will have a comparably fast LTE 4G network, the same phone lineup, and pricing that probably will get pretty close to T and VZ. Should its market cap by then be so much different, assuming subscriber growth takes hold, and market shares converge some?
Sprint management also stated that they expect to mostly complete Network Vision by the end of 2013, which should dramatically improve margins. They will finally shut down the legacy iDen network, migrate the last of those customers to Sprints 4G network, finish the company’s own LTE network, as well complete the technology to integrate Sprint handsets with Clearwire’s own WiMAXX and future LTE network.
Sprint is reportedly a little short on spectrum, having less capacity (at the higher less “penetrating” 1900 MHz) than its peers. But in all other categories, it should be roughly on par. One plus for Sprint today: customer satisfaction surveys rank it a very close second behind VZ Wireless, and well ahead of AT&T. Net net, I cannot see a major competitive or cost disadvantage for Sprint by 2014.
Valuation
What does this mean for the stock? Likely over the next few years, I project Sprint can grow its revenue base from today’s $33BB, to $40BB or so. My EBITDA numbers (see table above) imply margins improving from today’s 18% level, to around 23% by 2015. That is still far below Verizon and AT&T’s near 40% margins, but closer to T-Mobiles mid 20% EBITDA margins. This seems quite reasonable.
Using a 2015 EBITDA number, which growth is actually mostly driven by its Network Vision cost cutting plan, here is what S could be worth in 4 years:
On a FCF basis, by 2014, assuming this level of EBITDA can be achieved, the stock could generate $0.79 per share in FCF.
Conclusion
Sprint is quite a speculative stock. When I looked at it last summer at $4.50 a share, I didn’t think it was interesting until it got to the $2 range– well, here it is. To me the key will be management delivering on its Network Vision plan to improve margins. I am convinced that the subscriber growth will be there. But first, the decline in 2012 EBITDA to only $3.5BB may scare investors, who may not have the patience to weather another year of dismal performance– especially after living through the past five years. Even in 2013, EBITDA will improve, but perhaps not enough to justify much movement in the stock. That said, for the patient, long term oriented crowd, the upside is solid. And who knows– perhaps a deep pocketed cable company or private equity buyer may find this an interesting turnaround play, and buy Sprint outright.
As far as downside goes, there is a chance the stock falls to zero, but more likely it languishes at $1-1.50 amidst a bad tape and weak numbers. Owners today should treat S like an extremely long dated call option on a turnaround. Upside of $6 to $9 per share, downside of $2. Good luck.
Disclosure: I am long S.
See the original article by Thomas Lott here: http://seekingalpha.com/article/313083-sprint-this-speculative-play-could-be-a-5-bagger
U.S. Transportation Secretary Ray LaHood announced a final rule specifically prohibiting interstate truck and bus drivers from using hand-held cell phones while operating their vehicles. The joint rule from the Federal Motor Carrier Safety Administration (FMCSA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) is the latest action by the U.S. Department of Transportation to end distracted driving.
“When drivers of large trucks, buses and hazardous materials take their eyes off the road for even a few seconds, the outcome can be deadly,” said Transportation Secretary Ray LaHood. “I hope that this rule will save lives by helping commercial drivers stay laser-focused on safety at all times while behind the wheel.”
The final rule prohibits commercial drivers from using a hand-held mobile telephone while operating a commercial truck or bus. Drivers who violate the restriction will face federal civil penalties of up to $2,750 for each offense and disqualification from operating a commercial motor vehicle for multiple offenses.
Additionally, states will suspend a driver’s commercial driver’s license (CDL) after two or more serious traffic violations. Commercial truck and bus companies that allow their drivers to use hand-held cell phones while driving will face a maximum penalty of $11,000.
In September 2010, FMCSA issued a regulation banning text messaging while operating a commercial truck or bus and PHMSA followed with a companion regulation in February 2011, banning texting by intrastate hazardous materials drivers.
While driver distraction studies have produced mixed results, FMCSA research shows that using a hand-held cell phone while driving requires a commercial driver to take several risky steps beyond what is required for using a hands-free mobile phone, including searching and reaching for the phone. Commercial drivers reaching for an object, such as a cell phone, are three times more likely to be involved in a crash or other safety-critical event. Dialing a hand-held cell phone makes it six times more likely that commercial drivers will be involved in a crash or other safety-critical event.
“While it’s a very important rule, and certainly, something we applaud the Secretary for initiating, I don’t know it will have much of an impact since most companies already have policies prohibiting drivers from using cell phones while they are driving,” said United Motorcoach Association President/CEO Victor S. Parra. “So from that standpoint, I don’t think it’s going to really alter policies that much.”
In fact, many of the largest truck and bus companies, such as UPS, Covenant Transport, Wal-Mart, Peter Pan and Greyhound, already have company policies in place banning their drivers from using hand-held phones; however, Norm Littler, VP, regulatory & industry affairs, for the American Bus Association said even with these rules in place the carrier could still be held liable under the new rule.
“The thing we express some concern over is the employer liability,” said Littler. “If a driver violates company policies as well as the new rules and uses a handheld cell phone, the way the rule reads it would still mean the company could be liable under FMCSA rules for the violation and subject to a potential fine.”
Having a clear and concise written rule in place stating that hand-held cell phones and texting is against company rules and making certain that all drivers have read the policy and signed off on it is the best course of action for carriers to protect themselves should an incident occur, Littler added.
“As with anything, have your policies in place, revisit them, make certain that they are adjusted as necessary, test them and make certain you have evidence that everybody in your company is aware of them and have read and agreed with them,” he said.
Nearly 5,474 people died and half a million were injured in crashes involving a distracted driver in 2009. Distraction-related fatalities represented 16% of overall traffic fatalities in 2009, according to National Highway Traffic Safety Administration research.
The final hand-held cell phone ban rule can be accessed here.
See the original article here: http://www.metro-magazine.com/News/Story/2011/11/Final-Rule-banning-hand-held-cell-phone-texting-released.aspx?ref=MET-BreakingNews-20111123&utm_source=Email&utm_medium=Enewsletter
Here’s a great new commercial from Samsung that pokes fun at the people who camp out overnight waiting for iPhones:
[youtube=http://www.youtube.com/watch?v=FVkH9Hgvda4]
Original story: http://www.businessinsider.com/ios-5-update-2011-11#ixzz1dKkLIS87
Apple just released an update to iOS 5, version 5.0.1, is now live for download. The update fixes the software bugs that caused several iPhone 4S owners to suffer from horrible battery life.
Other improvements: New multitasking gestures for the original iPad and a bug fix for uploading documents to iCloud.
The update is available over the air, meaning there’s no need to sync your iPhone or iPad to your computer to get it.
Just go to Settings > General > Software Update.
If your iDevice doesn’t recognize the update right away, wait a few minutes and try again.
Also note that the download may be slow since there are likely a ton of people trying to get the update at the same time. Be patient, and plug your phone into a power source so it doesn’t die while it’s trying to update
From www.FastCompany.com Entire original article: HERE
BY AUSTIN CARR
For a whole new generation of tech-savvy young professionals, having access to social media or the right smartphone in the workplace is at times more important than earning a higher salary. For businesses, that means adapting to this change in priorities rather than resisting it–if the Mad Men-era job force expected noon whiskeys and female secretaries, then our modern-day equivalent demands Facebook and iPhones.
The findings come thanks to Cisco’s second annual Connected World Technology Report, a study released today that says attracting and maintaining Millennial talent takes more than the number of zeroes attached to a weekly paycheck. The company surveyed 1,400 college students aged 18 to 23 and 1,400 young professionals under the age of 30 across 14 countries. HR and IT managers take note: “The growing use of the Internet and mobile devices in the workplace is creating a significant impact on job decisions, hiring and work-life balance,” the report concluded. “The ability to use social media, mobile devices, and the Internet more freely in the workplace is strong enough to influence job choice, sometimes more than salary.”
Cisco’s findings are telling of a generation that’s been glued to LCD screens and wired to social networks from an early age. According to the report, 40% of college students and 45% of young professionals would accept lower-paying jobs if they had more access to social media, more choice in the devices they could use at work, and more flexibility in working remotely. More than half of the college students surveyed indicated that if an employer banned access to networks like Facebook at work, “they would either not accept a job offer from them or would join and find a way to circumvent.”
This technology addiction represents a major opportunity for employers looking to add to their bottom lines while recruiting top talent. For just a few simple workplace concessions (say, allowing employees to choose an iPhone over a BlackBerry, and opening up access to social networks), recruits could be more likely to accept job offers–and at a lower salary. One in four college students, according to the report, said issues like these–while likely baffling to older generations–would represent key factors in their decision to accept a job offer. (To demonstrate just how obsessed Millennials are with their precious tech, Cisco also discovered that more than half of respondents said they’d rather lose their wallets or purses before losing their smartphones or mobile devices.)
At Cisco, the company is exploring internal opportunities to take advantage of the report’s findings, which continue to show an increased melding between one’s professional and personal life. Employees more and more show an interest in working from home, using a work-issued mobile device for personal purposes, and connect to social networks while on the job. (There’s a reason why services such as Yammer, the enterprise version of Facebook, are becoming so popular.) In fact, seven out of 10 college students said company-issued devices should be allowed for personal use. That’s why Cisco, for example, is internally testing what’s called BYOD, or Bring Your Own Device, meaning employees can come to work with whatever technology they prefer–be it an Android smartphone, an iPad, or a Windows-based laptop.
If that’s what it takes to recruit top talent these days–especially at a potentially lower price–how can you complain?
[Image: Flickr user Lower Columbia College]
Sprint on Wednesday stated that it has entered into a four-year deal valued at $15.5 billion to offer Apple’s iPhone line of handsets, the GSMA’s mobile business blog reports. Additional details were not revealed, but the carrier said it expects iPhone-related revenue to outperform the deal. ”We expect the lifetime value of a typical iPhone customer to be at least 50 percent – yes, at least 50 percent – greater than a typical smartphone user, driven primarily by more efficient use of our network and lower churn,” Sprint CEO Dan Hesse said during the company’s third-quarter earnings call. Sprint also said it expects to sell more than 1 million iPhone handsets in the fourth quarter of this year. AT&T revealed earlier this week that it activated 2.7 million iPhones last quarter while Verizon Wireless said it sold 2 million iPhone 4 handsets over the same period of time.
Original source: http://www.bgr.com/2011/10/27/sprint-says-iphone-deal-is-worth-15-5-billion/
This week marked the historic arrival of the iPhone 4S to Sprint customers across the nation. Hooray… right?
I know that this is a game-changer for Sprint, but what will the big picture implications be? Is it just inevitable that eventually EVERYONE will have an iPhone? What about Android? It’s been outselling iOS for quite a while now. And remember Windows? Will anyone ever embrace Windows Mobile? Now don’t even get me started on Blackberry. As late as August of last year RIMM had a dominating 37.6% market share of smart phone platforms in the US. Today, that figure is closer to zero than ever before and picking up steam. RIMM has apparently thrown in the towel and hired some investment bankers to shop the company around.
If you bought the stock a year ago, you may want to consider giving it to your kids to doodle on now.
However, if you’re a gambler, you may want to snap some up now and dump it as soon as a suitor is found.
Don’t get me wrong, I LOVE Blackberry. I’ve been a loyal user for ten years now, and I think the brand new Bold with the touch screen is the best Smartphone I’ve ever used. I tried the Android. I became very familiar with the terms “Force Close” and I even bought 13 extra chargers so I could get through an entire workday, but I just couldn’t commit. Nothing blocks and tackles like a Blackberry. Unfortunately, the world wants sexy, and RIMM was too busy counting their money to look up as the world passed by.
Selfishly, I hope that someone, somehow can make the Blackberry a contender again. Sadly, I fear that my phone will eventually end up on the same pile as all those Beta tapes of Barney Miller and Chico and the Man.
CUPERTINO, California—October 4, 2011—Apple® today announced iPhone® 4S, the most amazing iPhone yet, packed with incredible new features including Apple’s dual-core A5 chip for blazing fast performance and stunning graphics; an all new camera with advanced optics; full 1080p HD resolution video recording; and Siri™, an intelligent assistant that helps you get things done just by asking. With the launch of iPhone 4S also comes the launch of iOS 5, the world’s most advanced mobile operating system with over 200 new features; and iCloud®, a breakthrough set of free cloud services that work with your iPhone, iPad®, iPod touch®, Mac® or PC to automatically and wirelessly store your content in iCloud and push it to all your devices.
“iPhone 4S plus iOS 5 plus iCloud is a breakthrough combination that makes the iPhone 4S the best iPhone ever,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “While our competitors try to imitate iPhone with a checklist of features, only iPhone can deliver these breakthrough innovations that work seamlessly together.”
iPhone 4S comes with iOS 5, the world’s most advanced mobile operating system, which includes over 200 new features including Notification Center, an innovative way to easily view and manage notifications in one place without interruption and iMessage™, a new messaging service that lets you easily send text messages, photos and videos between all iOS 5 users. iOS 5 will also be available as a free software update for iPhone 4 and iPhone 3GS customers allowing them to experience these amazing new features.*
iPhone 4S also introduces Siri, an intelligent assistant that helps you get things done just by asking. Siri understands context allowing you to speak naturally when you ask it questions, for example, if you ask “Will I need an umbrella this weekend?” it understands you are looking for a weather forecast. Siri is also smart about using the personal information you allow it to access, for example, if you tell Siri “Remind me to call Mom when I get home” it can find “Mom” in your address book, or ask Siri “What’s the traffic like around here?” and it can figure out where “here” is based on your current location. Siri helps you make calls, send text messages or email, schedule meetings and reminders, make notes, search the Internet, find local businesses, get directions and more. You can also get answers, find facts and even perform complex calculations just by asking.
iCloud is a breakthrough set of free cloud services, including iTunes® in the Cloud, Photo Stream and Documents in the Cloud, that work seamlessly with your iPhone, iPad, iPod touch, Mac or PC to automatically and wirelessly store your content in iCloud and push it to all your devices. When content changes on one device, all your other devices are updated automatically and wirelessly.
iPhone 4S includes an all new camera with the most advanced optics of any phone. The 8 megapixel sensor has 60 percent more pixels so you can take amazing high quality photos with more detail than ever. iPhone 4S includes a new custom lens, a larger f/2.4 aperture and an advanced hybrid IR filter that produce sharper, brighter and more accurate images. The Apple-designed image signal processor in the A5 dual-core chip is built for performance, and coupled with the features built into iOS 5, makes the camera one of the fastest on any phone. With iPhone 4S, the Camera app launches much faster and the shot to shot capability is twice as fast, so you’ll never miss another shot.
New features in the Camera and Photos apps give you instant access to the camera right from the lock screen, and you can also use the volume-up button to quickly snap a photo. Optional grid lines help line up your shot and a simple tap locks focus and exposure on one subject; and the new Photos app lets you crop, rotate, enhance and remove red-eye, and organize your photos into albums right on your device to share them on the go. New iOS 5 features include built-in Twitter integration and iMessage, so you can instantly share your photos via Twitter directly from the Photos app and send photos via iMessage to individuals or groups. And with iCloud’s innovative new Photo Stream service, a photo you take on your iPhone is sent to iCloud and automatically pushed to your iPad, iPod touch, Mac or PC. You can even view your Photo Stream album on your Apple TV®.
iPhone 4S can also now record video in full 1080p HD resolution and with the new video image stabilization feature, you can take richer, smoother videos. Other iPhone 4S video camera improvements include increased sensitivity, sharpness and an increased ability to capture video in low light conditions. With the new iMessage service in iOS 5, you can now instantly share videos with family and friends.
iPhone 4S has the same beautifully thin glass and stainless steel design that millions of customers around the world love, while being completely redesigned on the inside. Apple’s dual-core A5 chip delivers up to twice the processing power and up to seven times faster graphics than iPhone 4, all while maintaining incredible battery life—now up to 8 hours of 3G talk time.
Improving on the innovative stainless steel external, dual-antenna design of iPhone 4, iPhone 4S is the first phone to intelligently switch between two antennas to send and receive. iPhone 4S now supports twice the download speed with HSDPA of up to 14.4 Mbps and iPhone 4S is a world phone, so both CDMA and GSM customers can now roam internationally on GSM networks.**
Pricing & Availability
iPhone 4S comes in either black or white and will be available in the US for a suggested retail price of $199 (US) for the 16GB model and $299 (US) for the 32GB model and $399 (US) for the new 64GB model.*** iPhone 4S will be available from the Apple Online Store, Apple’s retail stores and through AT&T, Sprint, Verizon Wireless and select Apple Authorized Resellers. iPhone 4S will be available in the US, Australia, Canada, France, Germany, Japan and the UK on Friday, October 14 and customers can pre-order their iPhone 4S beginning Friday, October 7. iPhone 4 will also be available for just $99 (US) and iPhone 3GS will be available for free with a two year contract. Siri will be available in beta on iPhone 4S in English (localized for US, UK and Australia), French and German. iOS 5 software will be available on October 12 as a free software update via iTunes 10.5 for iPhone, iPad and iPod touch customers.
iPhone 4S will roll out worldwide to 22 more countries by the end of October including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Mexico, Netherlands, Norway, Singapore, Slovakia, Slovenia, Spain, Sweden and Switzerland.
*Some features may not be available on all products.
**Carrier roaming policies apply. HSDPA availability and network speeds are dependent on carrier networks.
***Qualified customers only. Requires a new two year rate plan, sold separately.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.