The other day, I was talking with a friend, and as our chats frequently do, the conversation veered toward the gadgets that increasingly control our lives: in this case, the launch of Apple's
For a $25 fee, users will be able to move all of their music to the iCloud. Because Apple struck a deal with the four major music labels that pays it 70% of that fee, this will include users' songs obtained in less-than-honorable ways. You know what I'm talking about. Fuzzy loves his iPad and had this to say about Apple's new software: "If this actually works, then I'm definitely getting an iPhone in the fall. No question."
Apple hasn't released much info on the iPhone 5, electing to discuss only software at last Monday's conference. However, the new software has the ability to intensify Apple's already significant "halo effect" -- meaning that just like Fuzzy Prettyboy, once you buy one product from Apple and love it, you're more likely to buy another product.
Though the stock swooned in the days after Apple's announcement, I believe that while my conversation with Fuzzy is anecdotal, millions of users will see iCloud as another reason to connect themselves to Apple's products. In the end, iCloud may end up being the secret ingredient to pumping up its handset sales. This is a boon for Apple, but also for its suppliers; when Apple sells millions of products, so do they. Here are two suppliers that, according to recent reports from industry insider Digitimes, are reportedly looking to continue riding Apple's coattails when the iPhone 5 hits the streets.
A couple of caveats to this news: First of all, it comes from Digitimes, a Taiwanese company that sometimes is very accurate in picking up "chatter" from supply channels, but sometimes misses the mark. Second, even if these companies do score wins in one generation of the iPhone, it's always a competitive battle for the next round. Still, with iPhone suppliers having seen their share prices slashed in recent weeks, this looks like a great entry point to find your iPhone supplier play.
As the iPhone 5 readies for launch either this fall or early next year, it will be interesting to see how the iCloud and iTunes Match impact Apple's halo effect. If the new software helps to increase sales of the iPhone 5, companies like OmniVision and Avago look like two of your best bets to profit off Apple's continuing success.
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Fool contributor Aimee Duffy has her feet on the ground and her head in the iCloud. She doesn't own shares of the companies mentioned in this article. The Motley Fool owns shares of Apple and TriQuint Semiconductor. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. 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.