What Apple Inc. (AAPL) Needs

Page 2 of 2

According to Bloomberg, that’s a theme that is running through much of the world. For example, Horace Dediu, an analyst who runs Asymco.com, explained to Bloomberg that Samsung has relationships with nearly all of the 800 cell phone companies in the world, while Apple is stuck at around 240. That’s a big difference and means that Apple’s iPhones and iPads simply aren’t an option for billions of potential customers.

Change is Hard

Part of the problem is Apple’s penchant for keeping everything close to the vest. It doesn’t like to open up its technology. Google Inc (NASDAQ:GOOG) and Samsung don’t seem to mind doing that at all. Interestingly, BlackBerry follows a similar model to Apple Inc. (NASDAQ:AAPL), which could be a major impediment to that company’s turnaround effort. Most investors should stay on the sidelines at BlackBerry to see if the company gets some traction with its new phone.

Although on much more solid footing than BlackBerry, if Apple doesn’t start to open up a little it will likely find the going rough. That’s particularly true in countries with strict governments, like China and Russia. This is an important topic for investors to watch. That said, with a near 3% dividend yield and plans to buy back a huge number of shares, the stock should have notable support at recent levels. Getting paid to wait for Apple to figure out how to find new customers may not be such a bad thing.

While Samsung and Google Inc (NASDAQ:GOOG) both seem like they are poised to take over the world, each company is priced for perfection. That makes them most appropriate for momentum investors. More conservative investors might want to take some profits. Nokia Corporation (ADR) (NYSE:NOK), meanwhile, is in turnaround mode, like Research In Motion Ltd (NASDAQ:BBRY). It’s best avoided until investors see some consistent improvement in the business.

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

Page 2 of 2