Sellers hit Apple hard in October, dropping the stock by more
than 30% from the September $701 peak. Though it didn't seem
possible a few months ago, Apple's recent decline has many
investors worried that the good times may be long gone.
Honestly, the bad news has piled high during the past month.
First, Apple botched the iPhone 5 launch. In fact, the aftermath
and the firing of a few key employees.
iPad mini underwhelmed
customers. The product was decent, but many analysts fear that it
will only serve to take away from iPad sales.
Finally, to add insult to injury,
Apple allowed Google
maps back on its phones this December. In the first 48 hours, the
Google maps app for iOS was downloaded more than 10 million
Throw in some market weakness thanks to the EU and the U.S.
and - wham - a 30% decline to Apple.
Though the decline has been severe (and the corporate news
negative), Apple is in an amazing position to profit from two of
the fastest trends in hardware technology.
Despite the recent depreciation in stock value, the company
stands to clean up from two of the biggest trends in technology -
tablets and smart phones. Data presented by
's showed that smart phones have clobbered PC growth since 2008.
Also, unit total and total value of smart phone sales eclipsed
that for PCs for the first time last year.
There's no doubt the "smart phone revolution" stemmed from
Apple, which sold more than 39.9 million iPhones in 2010. Apple
increased that amount to 72 million units in 2011 and nearly 125
million iPhones during 2012.
In addition to being the king of smart phones, Apple holds the
crown in the tablet market - a segment that may overtake PCs
soon. Though tablets arrived late to the party, 100 million of
them shipped last year (PCs were below 400 million units). In
fact, Apple alone has sold more than 100 million iPad tablet
devices during the past two years.
Amazingly, Apple recorded $156 billion in sales last year.
iPhone- and iPad-related products accounted for $112 billion of
that total amount.
The future direction of smart phones and tablets is obvious. And
Apple is one of the few companies in a position to profit from
that expected growth. The stock may move lower or wiggle around
$515 for another few weeks or months. However, the company is in
too good a position and the shares are too cheap to stay this low
for an extended period.
Apple isn't the only company making money hand over fist because
of the smart phone/tablet trend ... we've uncovered several
more stocks. In fact, two are sitting in our
Top Stock Insights
portfolio right now. More information about our investment
service and our investing strategy for 2013 is available by