A Missed Opportunity That Could Be Huge for Apple Stock

As impressive as the stats are for iTunes, Fool contributor Tim Beyers says Apple (NASDAQ: AAPL  ) isn't doing as much as it could with the service.

Investors might not care, since Apple stock is up more than 9% since the company's excellent fiscal Q3 report on July 23. Yet momentum goes only so far. The Mac maker needs catalysts to push its shares higher in the months and years to come, and iOS 7 may not be enough.

That's where iTunes comes in, Tim says in the following video. Apple supports 350,000 movie and 800,000 television downloads daily, making the service one of the Web's largest and most consistent payment processors.

Yet there's no system for using iTunes as an e-Wallet for purchasing real-world goods. Instead, Apple is leaving Google and its new Wallet team alone to battle with upstart Square and market leader eBay (NASDAQ: EBAY  ) , which plans to use PayPal to support $300 billion in annual commerce by 2015.

Limiting iTunes guarantees Apple won't be able to compete for that huge chunk of business. Tim says that's a mistake. Do you agree? Tell us what you think of the Mac maker's iTunes plans and whether you would buy, sell, or short Apple stock at current prices.

Wherever you stand on Apple, it's incredible to think just how much of our digital and technological lives are almost entirely shaped by the Mac maker and a handful of similar companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

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  • Report this Comment On August 05, 2013, at 10:14 PM, vv234 wrote:

    Although Cook may not be as smart or shrewd as Jobs, I am sure he will milk as much much from ITunes as possible if there is an easy way. The problem is that just because you have a lot of customers and their cc numbers does not make you an expert on managing financial transactions. Great companies need to focus on its core businesses. Yes, Google and Amazon may have tried e-wallet ideas but none has succeeded yet. This article is just another example of the naive and less useful

    articles from some of the Fool team. As a long term reader of this once wonderful forum, I do wish the founders Gardner brothers have noticed that deterioration of the content quality in the recent years here. This will not help their reputation of their paid services at all IMO.

  • Report this Comment On August 07, 2013, at 10:43 AM, jsshapiro wrote:

    NFC apple doesn't support it yet - maybe next gen willl?

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