Just What Apple Needs: More Good News

The following video is part of our "Motley Fool Conversations" series, in which chief technology officer Jeremy Phillips and senior technology analyst Eric Bleeker discuss topics across the investing world.

You don't become the largest company in the world riding a wave of bad news. In Apple's case, it's been riding a winning streak that now spans more than a decade. However, if there's one concern surrounding the company, it's that carrier subsidies could derail iPhone sales and put a stop to the company's growth. That's a concern that's kept Apple at a below-market P/E in spite of its enormous growth rates. Two pieces of recent news point to Apple continuing to expand on its iPhone fortunes. First off, the iPhone is coming to Virgin Mobile. Expanding to prepaids is a nice new form of distribution on its own. However, this will also give investors a better feel of users' willingness to pay more for an iPhone without the subsidies larger carriers offer. Another piece of good news is recent surveys showing users increasingly gravitating to the iPhone 4S. Especially when users move up to the models with more storage space, that's the most high-margin phone Apple offers and this continues one of the hidden storylines driving the company's surge in profitability: ever-increasing margins. To see Eric's and Jeremy's full thoughts, watch the video below.

If you're one of the thousands of investors riding Apple to spectacular gains, you're doing yourself a disservice by not looking at the variety of companies benefiting from the same trends that make Apple the most valuable company in the world. The Motley Fool has released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a 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.

Eric Bleeker has no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. 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 (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1907223, ~/Articles/ArticleHandler.aspx, 4/23/2014 6:03:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement