The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
John and David have talked a lot about Apple in recent months. Today, they discuss three additional reasons why the stock is worth buying today. First, the iPhone5 is most likely on its way. Each upgrade cycle has pushed unit sales higher. In fact, the iPhone franchise generates more revenue per quarter, on average, than Microsoft's entire business. Second, retina display investments are starting to pay off as the technology is spreading through its product line and paving the way for AppleTV. What innovations have Dell or Hewlett-Packard come up with recently? Finally, it appears that there is a smaller iPad in the works. It's a good thing Amazon.com is revamping its Kindle Fire because Apple is going to keep investing in incremental tablet options to keep the competition at bay. If a company is consistently growing earnings at 15%, it could possibly trade for a multiple of 20 times earnings. That could put Apple at $1,080 per share, or worth more than $1 trillion in market cap, by 2013. Those are very attractive potential returns.
If you're one of the thousands of investors riding Apple to spectacular gains, you're doing yourself a disservice by not looking across the whole variety of companies benefiting from the same trends that make Apple the most valuable company in the world. The Motley Fool has just released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.
Please enable JavaScript to view this video.
