Better Tech Accessory Play: ZAGG vs. Skullcandy

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and technology and media editor and analyst Andrew Tonner discuss topics across the investing world.

In today's edition, Andrew and Austin talk about a creative way to play the mobile revolution: accessories. So many investors have looked to component plays as the one-off way to profit from big mobile growth that they seem to have overlooked this potential avenue. Two of the most compelling plays are Skullcandy (Nasdaq: SKUL  ) and ZAGG (Nasdaq: ZAGG  ) . As many people begin using their mobile devices as portable media stations, they are invariably drawn to pick up a hip pair of self-expressive headphones to get full use from them. While Apple's (Nasdaq: AAPL  ) ever-popular iPhone comes with headphones, that hasn't seemed to hurt Skullcandy, which grew sales 45% from last year. Then there is ZAGG, which sells cases for mobile devices, including the whole suite of iGadgets. While they don't have the same brand strength as Skullcandy, their products are a more common mobile device accessory than flashy headphones.

These companies are just two ways to profit from Apple's continued growth. There are the component plays I mentioned earlier, which you can read about in our report "The Next Trillion Dollar Revolution," which details a hidden component play inside mobile phones that also is a market leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

Andrew Tonner has no positions in the stocks mentioned above. Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Skullcandy Inc. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (1)

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  • Report this Comment On April 13, 2012, at 2:57 PM, tcp1130 wrote:

    I like zagg to your site is completely wrong on SKUL

  • Report this Comment On April 13, 2012, at 8:37 PM, rhodesdw8 wrote:

    I'll be gentle with my critique of this video segment.... You really have no idea what you are saying. Zagg makes patented film based protective covers for smartphones and other devices. iFrogz makes iPhone cases and audio products. The ifrogz acquisition by Zagg was synergistic and made perfect sense. There product lines have virtually zero overlap. iFrogz audio products compete with Skullcandy. While Skullcandy is an excellent company with fine products, iFrogz too has great products sold at leading retailers like BBY, Walmart, Staples and many others. Zagg has every bit the brand equity as Skullcandy.....Zagg for their Invisible shields and other great gadgets like the Zagg folio for iPad....Skullcandy for earbuds.

    I have been selling technology products to retailers for 20 years. What are your qualifications?

    Maybe you should hire me for informed industry observations?

    Disclosure: long Zagg, don't hold Skullcandy but certainly respect the company.

  • Report this Comment On April 30, 2012, at 3:55 PM, rhodesdw8 wrote:

    ZAGG making a nice move today ahead of earnings. No surprise to me, how about you Austin? Great company, excellent products, great distribution, strong brand.

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