In this video, Austin Smith describes Apple's big opportunity: its iPhone. An unsubsidized iPhone costs about $650, but most people pay around $200 for an iPhone, and if a carrier doesn't subsidize the smartphone, customers will go to someone who will. This results in a profit margin 10 times greater than the margin for PCs. The smartphone market continues growing, and although Apple might lose market share, Austin says, its popularity and carrier subsidies allow Apple to gain great profit margins. Consequently, Apple enjoys a great cash balance to work with for future projects and innovations.
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There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.