What it is: Apple’s stock keeps rising as the iPhone gobbles up more market share and earns 90% of all smartphone profits. If you want to invest in any company, consider investing in Apple.
Apple stock (AAPL) has skyrocketed from the days when it was a niche personal computer maker, struggling to compete against the Microsoft juggernaut. Now it’s the other way around as Microsoft struggles to compete against Apple.
Investing in Apple makes sense since their last 7-1 stock split brought the price down to a more reasonable $100 price per share. Of course, the share price keeps steadily increasing so by the time you read this, Apple stock might be even higher. As long as Apple can keep selling iPhones, iPads, Macintosh computers, and Apple Watches (along with iTunes music, apps, and iPods), the company will continue making money.
In addition, Apple pays a steady dividend so buying the stock and holding on to it insures you’ll earn close to 50 cents or more for each share you own. Just buy as much as possible and collect the steady dividends that will keep coming in as long as Apple continues making money.
For another way to make money off Apple, consider looking at companies that supply parts to Apple. ARM Holdings (ARMH) makes ARM processors used in nearly all smartphones and tablets. Although Apple makes their own processors, they license the basic design from ARMH. As long as smartphones and tablets sell, ARM Holdings will always make money.
Qualcomm (QCOM) is another company that makes chips used in nearly all smartphones. So whether Apple succeeds or not, Qualcomm should still make money in the smartphone and tablet market, selling components to practically everyone who wants to make a smartphone or tablet.
Corning (GLW) makes Gorilla Glass, which is used for most smartphones and tablets. Gorilla Glass was originally a laboratory experiment that Apple used to make it a commercial product. Practically every smartphone and tablet uses Gorilla Glass for its durability.
If you look on the side of this web site, you can see a list of Apple suppliers that you can investigate. If the idea of betting on Apple makes you a bit squeamish, consider putting your money on companies that sell components to everyone in the mobile computing business like Qualcomm or ARM Holdings. If Apple should stumble for some reason, the smartphone and tablet market will continue growing so other companies will continue to benefit as well.
Investing in any company that keeps churning out products that people buy is always a smart move. Investing in rivals that keep losing business to Apple probably isn’t as smart an investment as you might think, especially if these companies have no plan or strategy to compete like Blackberry or Nokia.
If you’re interested in getting rich, put your money in Apple and Apple related companies. That way as the price of Apple stock goes up and the dividends keep rolling in, Apple will literally be paying you to buy more of their products.