iPhone
Leave it to Apple to be able to make a product that has already achieved the visibility and success of the iPhone. Out for several weeks now and still creating a tremendous buzz, the iPhone itself is quite a good reason to be looking at AAPL. Surveys suggest that 30% of people plan on buying an iPhone, and product awareness of the iPhone is around 90%, which is incredible. It only gets better from here on out, however. Sleek, slender, and incredibly multi-functional, the iPhone is still only in its first generation, and much like the iPod, it is bound do develop significantly in the coming years. If the iPhone receives even half of the success of the iPod, Apple is in for a good run. Perhaps more indicative of future success is Apple's exclusive relationship with AT&T. Apple receives something like $3 per month for each subscriber, and $11 per month for each user that switches to AT&T solely for the iPhone. Couple this with the earnings off the cost of the phone itself, and this means BIG profits for Steve Jobs and crew, and anybody that is wise enough to buy AAPL.
It would feel very wrong to write this analysis without including the iPod in Apple's future. What the iPod has done for Apple reaches far beyond quarterly earnings. The iPod breathed a special kind of life into a company that wasn't dead to begin with. It made Apple the cool, hip company. The underdog on top, fighting behemoth Microsoft on the streets. Its inception was the dawn of a new generation of the way people perceive the technology scene. Apple is gaining a reputation as a reliable and innovative company that is willing to think outside the box in order to provide its customers with the best possible products and service, and they owe it all to whatever design team conceived the iPod. What's more is that there is that the iPod was not just a catalyst for this change. The iPod's success will continue well into the future. There are over 100 million iPods out there out of 140 million mp3 players in the world, and while Apple clearly dominates the market, the market itself has tremendous room for growth. Apple's continued global expansion to places like Europe only means great things for the company. Soon we will all be united as one in our selection of innovative Apple products: an iWorld, if you will.
Intel Processors
One couldn't possibly talk about the future of Apple and only consider hand-held devices. Apple's computers are the company's roots, and they have maintained their dedication to quality and design with each and every product offering. Apple's recent deal to include Intel Processors in their latest machines was one of the biggest things to happen to the personal computing scene since Bill Gates stole the idea for Windows. What Intel Processors mean is more than just compatibility. The Intel processors in the new machines open up worlds of possibilities for the company. Now Apple machines can run both Windows and OS X (or the upcoming Leopard) without any problems. The world was already prepared to begin shying away from PCs and join the revolution, and now Apple has made it that much easier to switch. Be prepared for the trickle of switchers to turn into a river in the next few years.
Steve Jobs
Enough said. If anybody ever has any concerns about what Apple is doing, there is always that one built-in safety feature that provides stock owners with some peace of mind in even the most dire situations. Steve Jobs is the man with the plan. Starting out as a quirky Silicon Valley entrepreneur, Jobs has grew into a fierce business competitor with a keen eye for design, quality, and innovation. Jobs knows how to run a business and how to market his products effectively. Jobs keeps the company looking towards the future, and is largely responsible for Apple's being perceived as "cool" as of late. With his ambitious, aggressive managerial style, you can be sure that no matter what Apple does in the future, it is most certainly headed in the right direction.
Sources:
http://en.wikipedia.org/wiki/Steve_Jobs
http://en.wikipedia.org/wiki/IPod
http://en.wikipedia.org/wiki/IPhone
http://www.fool.com/investing/high-growth/2007/06/15/three-reasons-to-buy-apple-now.aspx
http://investing.businessweek.com/research/stocks/people/people.asp?symbol=AAPL.O
Published by AM
Anthony Mangia is a current sophomore at Rutgers University. View profile
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1 Comments
Post a CommentYep, Apple is a good investment....as long as every dude in the nation feels the need to announce I'm calling from my i-phone