“Love it or hate it, Apple is the new hipster in town. With innovative products and slick designs, everyone is rushing to play catch-up with this company. But is Apple set to emerge as the best blue-chip investment for 2007? You bet your Granny Smiths it is,” Katrina Chan writes for The Motley Fool.
“In the span of a few years, Apple’s brand, strategy, and products have been reinvented dramatically, and it shows on the company financials. From a product standpoint, since 1998, Apple has unleashed several versions of the iMac and MacBook, several iPods (the traditional iPod, the Nano, and the video iPod), and iTunes,” Chan writes.
“It’s also about the competition. I think there’s no argument that Apple is the dominating force in the digital-music world with iTunes and the iPod. And Apple is also gaining market share in the U.S. PC market. According to Gartner research for Q3 (which falls under Apple’s Q4), Apple grew 31% year over year, leaving the other main competitors in the dust, while the PC market shrank 2%,” Chan writes. “Combine that with the compatibility of Microsoft Windows on Apple computers, and I’d expect that market-share percentage to climb higher.”
Chan writes, “Apple is not a traditional blue-chip stock. It’s a company that’s capitalizing on current technology trends and consumer needs — mainly digital music and computers. Rumors are brewing of an iPod phone and online movie rentals. The possibilities are never-ending — kind of like those Mac/PC commercials. Yes, Apple is a newcomer, but it’s one that has proved it has staying power, with more than five years of stable and dependable growth behind it. Apple could quite possibly be the easiest money you’ll ever make — it has returned more than 600% over the past three years alone!”
Full article here.