Apple Inc: The Good Times Are Not Over

Apple can still make investors prosper in the near future. Will Microsoft and Samsung allow this to happen?

Apr 17, 2014 at 9:30PM

Apple (NASDAQ:AAPL) ranked fourth in returns among the largest companies in the S&P 500 over the last decade. Sales of the iPhone and iPad have driven Apple shares up 3,600% in that time. But due to a 25% drop since September 2012, doubts have arisen as to whether investors can still beat the market with the company.

The rumored release of the so-called iWatch in the third quarter of the year, the launch of CarPlay, and the company's update of its great products each year will help investors prosper in the near future.

Apple's CarPlay wants to control your car
The global connected car market is driven by factors such as the growing awareness about the need for connectivity. The demand for services such as gaming and traffic information supports the growth of the market. According to Transparency Market Research, the global connected car market is expected to reach $131.9 billion by 2019. Vehicles from Ferrari, Mercedes-Benz, and Volvo already use Apple's CarPlay. The initiative should boost Apple's revenue going forward.

The anticipated release of iWatch
Apple is a global brand, and its reach has never been greater. The company can sell a new product launch. According to Economic Daily News, Apple will release its anticipated iWatch later in the year. With the development, Apple can profit from the smartwatch sector. Canalys predicts 17 million wearable bands will be shipped this year. The smart band segment alone will reach 8 million annual shipments, growing to more than 45 million by 2017. Apple has a great prospect in the sector.

The updating of great products
In addition to CarPlay and the so-called iWatch, Apple will continue its current course of updating its great products each year. Apple has sold more than 470 million iPhones and about 200 million iPads since the company launched them a few years ago. IDC believes that smartphone shipment volumes will grow at a compounded annual rate of 16% and reach a total of 1.5 billion units shipped in 2017. The research firm also predicts that worldwide tablet shipments are expected to grow by 22.2%, year over year, in 2014 to a total of 270.5 million units. If Apple remains the dominant force in the sector, it will return lots of cash to investors via dividends and buybacks.

(NASDAQ:MSFT) has shown a prototype of its Windows in the Car interface. It is doing this for a good reason. The global connected car market will be worth $54 billion in 2018 from $18 billion in 2012, according to forecasts from research firm SBD and the GSMA. Microsoft will gain an important source of revenue if its product gains traction in the market.

Samsung (NASDAQOTH:SSNLF) is another company that has seen potential in the smartwatch segment. It recently announced the release of its Gear Two titles. NextMarket Insights forecasts the overall smartwatch market will grow from 15 million watches shipped in 2014 to more than 373 million by 2020.

Foolish takeaway
Investors can still prosper with Apple in the near future. Its anticipated launch of iWatch in the next few months, the release of CarPlay, and the update of iPad and iPhone will return lots of cash to shareholders.

The biggest thing to come out of Silicon Valley in years
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Mark Girland has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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