Dear Reader,
Since the arrival of the original iPhone, investors have had the chance to profit more than 4,500% on Apple’s stock (AAPL). So it’s natural that some investors think the best way to profit from Apple’s success is to simply buy AAPL and watch it rise.
But Apple already sits at a more than $2.5 trillion market cap… and it’s trading at all-time-high valuations.
At an enterprise value (EV)/sales ratio of 7.2, Apple’s current price is equivalent to over seven years of sales (not profits). That’s the highest valuation that Apple has ever had in its own history.
And we should keep in mind that Apple is primarily a hardware company.
More than 80% of its revenues come from selling lower-gross margin hardware products like the iPhone, iMac, and wearables like the Apple Watch and its popular AirPods.
Apple is one of my all-time favorite tech companies, but at an “expensive” valuation like this, we’re unlikely to double, triple, or 5X our money simply by buying shares of AAPL…
So how can investors position themselves to make life-changing gains from Apple’s success?
When looking at a company like Apple, it’s important to keep the big picture in mind.
Ultimately, investing in Apple is not the only way to gain exposure to the revolutionary trends that its products – like the iPhone – have unlocked. In fact, there are much better ways to find explosive gains.
So where do we find those opportunities?
Consider a brief history of Apple’s iconic device.
Ever since the first iPhone arrived, it has had ripple effects throughout many different industries. Here are just a few examples of the iPhone’s extraordinary influence…
Personal Computers: Prior to the iPhone’s release, around 400 million PCs were sold each year. Contrast that with 2020, in which only 275 million were sold. Why buy a PC when we now carry a pocket-sized computer with us everywhere?
Telecom Providers: The iPhone provided the push for telecom companies like AT&T and Verizon to switch from landline voice delivery methods to digital networks. Their business models have been completely transformed into conduits for digital data.
Entertainment: Can you remember the days when a movie theater or a VCR player were the only ways to watch a film? The iPhone developed a mobile platform for watching videos on the go, prodding studios and cable companies to adapt to the new distribution methods. It cleared a space for new, innovative companies like Netflix, Hulu, and YouTube to thrive.
These are three simple examples, but they illustrate the power Apple has to influence global industries.
In short, the iPhone’s incredible success has often had “knock-on” effects for other technology products and services.
And that’s where we find our opportunity…
Earlier this summer, Apple asked its iPhone suppliers – the companies who provide the components that go into the phone – to increase their production by 20% this year.
That’s a huge bump. We’re not talking a few percentage points here – 20% is a major increase.
And that’s why Apple’s suppliers can offer investors a great opportunity to profit. As Apple’s request shows, the more successful Apple’s products are, the more demand its manufacturers receive.
This has been especially critical due to the release of Apple’s 5G-enabled iPhone last year. 5G phones require more hardware than previous generations, especially since they still need to be backward compatible with 4G networks while nationwide 5G spreads.
More hardware means more specialized semiconductors… radiofrequency filters… and sensors… which means more profits for the companies that produce these essential components.
And as many of these companies are currently smaller than Apple, they can still have the chance to double… triple… or more.
In summary, there is an entire ecosystem of companies that benefit from Apple’s existence. And many of them offer far greater opportunities for you to make a small fortune than most investors realize.
And that’s why the news I have to share is so exciting…
I’m racing against the clock right now to get this information to readers…
You see, Apple just made a big announcement… a launch that most people don’t yet realize could lead to $12.3 trillion up for grabs in the Apple ecosystem as it rolls out.
Already, I’ve seen investors such as Warren Buffett, Elon Musk, Bill Gates, and Mark Cuban positioning themselves for what’s coming… and I don’t want any of my readers to miss out on this opportunity to invest alongside the big money.
That’s why I’m preparing a presentation to share all of the details with investors. It’ll happen tomorrow night, September 22, at 8 p.m. ET… and to attend, all you need to do is reserve your spot, right here.
I’d like to ask all of my readers to sign up to attend, because this opportunity could be explosive. Soon, this could be front-page news on The Wall Street Journal and the Financial Times.
But at this event, I’ll make sure all my readers have the chance to get the scoop on how to profit from Apple’s next big move…
Regards,
Jeff Brown
Editor, The Bleeding Edge
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The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.