Apple Inc. (AAPL) – Three Reasons To Break Into A Big Smile

As I mentioned earlier, China Mobile, with roughly 65% share of the country’s subscriber market (or around 704 million subscribers which also makes it the world’s largest carrier), has around double the number of customers registered with China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) and China Telecom Corporation Limited (ADR) (NYSE:CHA), two of its rival carriers that offer the iPhone. However, the sad part is that apart from subsidy-related and revenue sharing issues, China Mobile’s proprietary TD-SCDMA network technology is not compatible with the current generation of iPhones.

Enter the iPhone 5s, which is supposed to be a TD-SCDMA compatible variant, thanks to an updated chipset, if recent speculative reports are to be believed. That’ll also open up the doors to 700 million+ subscribers – a big reason to celebrate.

What’s that blinking on your wrist?

A cheaper iPhone or an upgraded version of the existing model may be part of strategic marketing, but it’s the rumored iWatch that’s going to be the innovative aspect. If recent reports are to be believed, Apple is working to develop a wearable computing device similar to a wristwatch that can function like a phone or tablet, but in a limited manner. Some of its functions may include viewing emails, calendar appointments and text messages. After the iPod, iPhone and the iPad, this could be Apple’s next big technology gamble, in its bid to create a whole new wave of ‘fanboys’.

That aside, wearable computing is an area where both Apple and arch rival Google are envisioning big prospects. Google has already come out with the ‘Google Glass’, a spectacle-like computing device that performs smartphone-based functions such as taking photos and recording videos. However, although the Android-powered device is no doubt innovative, it’s still basically a spectacle which some people may have reservations about putting on in public. A watch, on the other hand, is much more wearable and is, in some cases, a fashion accessory, things that might work in favor of Apple’s so-called ‘iWatch’.

It’s all about doing the right things

Having said that, Apple Inc. (NASDAQ:AAPL) still needs to take care of a few things. For starters, it has to be careful about the pricing of a cheaper iPhone, if such a product does come out. Cannibalization of current iPhone models is also another possibility, particularly in the US and other developed regions. At the same time, subsidy and revenue sharing arrangements need to be worked out with China Mobile for the success of the upgraded iPhone version.

As for the iWatch, it’s too early to speculate whether Tim Cook can successfully mix innovation with marketing the way Steve Jobs did. But, on the whole, I think it’s time to believe him when he says, “We’ve got some great stuff coming.”

This is one stock that has more pleasant surprises in store than you think. Time to permit yourself a smile!

The article Apple – Three Reasons To Break Into A Big Smile originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!