Stocks on Our Radar: Apple and IBM

IBM (NYSE: IBM  )  is a massive company, but it's facing a growth problem.

Big Blue rang up a whopping $100 billion of sales last year, but their top line seems to be stuck in idle. Revenue hasn't budged in the past decade, largely due to declines in the company's services segment. Investors, all-too aware that cost-cutting can only last for so long, are anxious for some form of growth to stoke future returns.

To solve that, the company once again looks to its enterprise customers for the answer. On Tuesday, IBM signed a new partnership with Apple (NASDAQ: AAPL  ) , which will pre-install several IBM enterprise software applications onto Apple mobile devices.

The move makes a lot of sense. "Bring Your Own Device" initiatives are spurring the adoption of Apple's products in the workplace. Throw in IBM's decades of experience in developing software, and this just might be a win-win-win -- for the companies, their customers, and investors.

In this edition of Stocks on Our Radar, Rule Breakers analyst Simon Erickson and Stock Advisor analyst Sara Hov discuss the new partnership and the implications for both Apple and IBM shareholders. 

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Simon Erickson

I'm fascinated in the way that innovation, entrepreneurship, and ambition are able to change the world we live in. I joined the Motley Fool full-time in 2013 and work for the Rule Breakers publication.

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