Is Apple Inc. (AAPL) a Long-Term Buy?

Page 2 of 2

As more Enterprise and government agencies deploy iPhones on their network, the company should focus on enhancing its security. And the iPad represented more than 88% of tablet activations, and the company is adding more features on iCloud to provide a better user experience for Enterprise customers. And in the future, Apple Inc. (NASDAQ:AAPL) can earn more revenues from Enterprise clients by taking more market share away from Enterprise Players like BlackBerry Ltd (NASDAQ:BBRY). And also iOS’s biggest competitor Android is not the strongest in the Enterprise market due to the open source nature of Android makes it less secure. 

Going Forward

Apple Inc. (NASDAQ:AAPL) has plans to launch iOS 7 in the fall with a number of new features and an enhanced user interface. In the future, Apple can earn incremental revenues from its iTunes and services business and from Enterprise clients. But these two revenue streams will not move the needle much for a company with such a big revenue base.

While the Apple Inc. (NASDAQ:AAPL) refreshes its current products, and unveils more game-changing innovations, the company’s upside will be driven by stable sales of current products, and by large share repurchases. Apple is more of a value stock, than a high-flying growth stock. Any substantial new product introductions from Apple that can create widespread consumer adoption will drive incremental upside for the company.

Ishfaque Faruk has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

The article Apple: A Long-Term Buy? originally appeared on Fool.com.

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

Page 2 of 2