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Is All of Apple's Good News Actually Good?


There are lots of seemingly favorable positive Apple headlines today.

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Apple (NASDAQ:AAPL) is rising sharply in pre-market action on two pieces of news, one definitely positive and one possibly positive:

1. Yesterday after the close, Apple and IBM (NYSE:IBM) announced a partnership to promote IBM software, big data, and cloud services on iOS devices within the enterprise. IBM will create more than 100 industry-specific enterprise solutions, including native apps for iPhone and iPad. IBM will also optimize cloud services for iOS, including device management and security initiatives. A new AppleCare service and support offering will also be created.

And very importantly, IBM will sell iPhones and iPads directly to clients as part of industry-specific solutions. This is great news because it gives Apple a new sales channel that complements Apple's existing enterprise and bring-your-own-device (BYOD) presences.

BlackBerry (NASDAQ:BBRY) is getting beaten up on the news; it's down about 5% in pre-market trading, presumably because people think this news will push BlackBerry out of more enterprises.

However, expectations for BlackBerry were already extraordinarily low, and plenty of enterprises still need to support BlackBerry and Google (NASDAQ:GOOG) Android devices. Nothing's going to change overnight as a result of this press release.

BlackBerry is also increasingly being perceived as an Internet of Things play. That adds two elements to the story: a potential new growth opportunity, and appeal as an acquisition target.

I'm considering going long BlackBerry this morning -- I'll update on the Buzz & Banter should I take action.

2. And on the possibly-positive front, Taiwan Semiconductor (NYSE:TSM) reported better-than-expected second-quarter results and strong Q3 guidance. News reports have indicated that Apple has shifted some of its semiconductor business away from Samsung (OTCMKTS:SSNLF) to Taiwan Semi, so the implication is that what's good for Taiwan Semi is good for Apple.

However, expectations for the iPhone 6 are already very high, and unless Apple specifically awarded Taiwan Semi business because demand is so strong that Samsung can't handle all the orders, this is non-news -- especially since it's not official that Apple is working with Taiwan Semi.

Twitter: @MichaelComeau

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