Bigger Screens, Bigger Market For Apple
Ron is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
The other day I was reading an article about how Steve Jobs made a business of being “cool.” Just think about this. If you don’t have the latest iPad, you are outdated among your business colleagues. If you don’t carry the latest iPhone, you are not cool among your friends.
As Apple (NASDAQ: AAPL) strives to bring new features every time, people are always ready to shell out more than a thousand bucks to be at the forefront of the fashion bandwagon. And why blame Apple? Even Google’s Android phones sell like hot cakes! Although this is my personal opinion, Google’s Android phones are much cheaper and more useful than the overhyped, overpriced Apple’s.
The latest news is that Apple is looking for bigger screens for the next generation iPhone 4S to be launched next year! Till now, Apple never attempted to change its iPhone screen sizes. It’s working with Korea’s LG Display Co. (NYSE: LPL) and Japan’s Sharp Inc. (NASDAQOTH: SHCAY.PK) and Display Inc., all collaborated to provide the ultimate screen size for the next generation iPhone.
Why the increase in size? They say, Samsung’s Galaxy S III has a 4.8 inch screen, larger than the 4.3 inch screen size of the company's current flagship model Galaxy S II. Even Taiwan’s HTC Corp, also has models with a screen size over 4 inches.
So what?
Is that a way of competing with the rivals in the smartphone market? Perhaps, but what we are looking at is Apple’s sales revenue.
Before we check the sales reports, here’s something you must know. Apple’s stock price shot up by over 40% in the last six months. That’s forty percent! People are pretty much optimistic about Apple’s future potential.
The company’s net sales improved to $108 billion in 2011, over $65 billion in 2010 and $42 billion in 2009. That’s a huge rise in sales revenue in just one year! And if we look closely, iPhone and related accessories and services brought over $47 billion in revenue last year, compared to $25.2 billion in 2010. Needless to say, iPhone and related services sales brings in the maximum revenue, among the other operational segments. Things are getting better by the day for Apple.
And Apple doesn't want anyone else to take away that income. So, it is doing everything under its control to keep the iPhone business growing forever.
Now what?
As an investor, I had always faith in Apple. Whether you go for Apple or not, you can definitely keep following it closely for the coming few years. Why? The iPhone 4S is going to be launched soon. Now, we have to make sure whether the iPhone saga continues to grow or not. We have to verify the market inclination after the iPhone 4S is released. Let's see if the iPhone 4S can triumph against the latest Samsung Galaxy model. What do you say?
To sum it up, being cool is good. Sometimes, it can make you money. Sometimes, it can be otherwise. But still, you can always be the “alpha” one among your friends, right?
RonChat has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend 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.If you have questions about this post or the Fool’s blog network, click here for information.
