You don't have to search long to read about many different potential catalysts that can drive Apple's
According to research by Nielsen, the iPad, iPod Touch, and iPhone are the three most-wanted consumer-electronic items among kids ages 6-12. Kids seem to enjoy the interactive and intuitive nature of the gadgets, and many parents are using tablets and smartphones not just as playthings for their children, but also as learning devices.
Sales to parents are boosting Apple's current revenue, but what may be even more beneficial to the company is that parents are introducing their children to Apple technology. For many kids today, an iPad will be their first experience with a computer. And since Apple's products tend to be "sticky," with high customer-satisfaction ratings and repeat purchases, it's likely that many of these children will go on to become Apple consumers as they grow older. In this sense, Apple is building future demand for its products and solidifying its customer base, not unlike what Under Armour
Apple is, however, facing increased competition in the tablet market. Amazon.com
But in addition to Apple, and regardless of whether it's Apple or Amazon that benefits most from this trend, other companies have an opportunity to capitalize on the demand for children-oriented content that can be consumed through tablets and smartphones. By selling digital apps featuring their branded characters, content producers such as Disney
It appears that our children will continue to drive the smartphone and tablet revolution forward -- a trend many investors are overlooking as well as a potential catalyst for tech titans such as Apple and Amazon. But if you're interested in hearing about three under-the-radar companies quietly cashing in on the booming smartphone and tablet markets, you can check out The Motley Fool's latest special free report: " 3 Hidden Winners of the iPhone, iPad, and Android Revolution ." The report is yours today, absolutely free.
Joe Tenebruso manages a real-money Rising Star Portfolio for The Motley Fool and is an analyst for the Fool's Million Dollar Portfolio and Income Investor premium services. Joe has written puts on Apple. The Motley Fool owns shares of Under Armour and Apple. Motley Fool newsletter services have recommended buying shares of Apple, Walt Disney, Amazon.com, Mattel, Under Armour, DreamWorks Animation, and Hasbro and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. 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.