Below I've identified three affected industries and three companies I will add underperform CAPScalls on, predicting they will underperform the market.
The video game industry has been built on a relatively constant business model for more than 30 years. Sell a critical mass of gaming consoles, driven initially by hard-core gamers, and leverage the base of consoles by selling high-margin games. Rinse and repeat every five to eight years.
Since new product launches often garner $60 for a hot title, not including now-common add-ons, gaming companies have enjoyed immense profits at the peak of this cycle.
Apple's iTunes store has turned that business on its head, changing the way Electronic Arts
The company I really question is Activision, which has already started to lose World of Warcraft users. The company has made a killing on expansive multiplayer games and repeat releases like Guitar Hero, but I think the company's hot streak is soon coming to an end.
World of Warcraft subscriptions fell 15% in 201, and I think the company is reaching its limit of Call of Duty players. The games on iPhones, iPads, and any new Apple TV device could make these games much less attractive very quickly.
Revolutionizing the printed word
After being disrupted by the Internet, traditional news sources may be toppled by the new information ecosystem Apple made possible. Despite being a standard-bearer in news, The New York Times
Some companies will be able to thrive in the new environment. Apps for a variety of sources have brought me to new sites and Twitter has changed the way some of us devour information.
On the flip side of newspapers' struggles, Apple's influence on the book market was on display when it introduced its new iBooks textbook format. The company has a chance to upend some competitors there as well, but I see textbooks and more interactive offerings as an opportunity for publishers, rather than a threat. Education hasn't changed much in decades and it's time someone shook them up and offered new, innovative ways to learn. McGraw-Hill and Pearson are adopting this format quickly and could benefit greatly from Apple.
Cutting the cable cord
I consume a lot of media, but more and more has moved to online or on-demand sources. That's leaving traditional television behind, something cable providers don't want to hear.
I have my eye on you, Comcast
With iTunes, Apple is partnering straight with media companies to provide content to consumers, and an upgrade of the Apple TV would likely take this to another level.
Foolish bottom line
Apple has created a platform that has affected video game, book, and media companies in different ways. Those companies that can innovate and adapt will grow, but it's difficult to give up an entrenched profitable business.
I'm adding underperform CAPScalls for Activision, The New York Times, and Comcast because of the impact I think Apple will have on their businesses. You can see all of my picks here.
To add these companies to My Watchlist, click on the links below.