by Bryan Perry | June 8, 2012 11:16 am
Apple (NASDAQ:AAPL) loves secrecy.
At his first appearance at the All Things Digital conference last week, Apple CEO Tim Cook noted that the company has some “incredible” new releases in the pipeline. He didn’t elaborate. It looks like Cook is following in his predecessor’s footsteps.
But while we don’t know exactly what Apple’s next “big thing” will be, one thing is certain: It quickly will become a must-have item with consumers around the globe.
U.S. technology pretty much leads the world day in and day out. Did you know that 80% of all new ideas in technology are from the ingenuity of the fine minds at our best universities, like Stanford, MIT and Harvard?
We have incredible, exploited technology here in the U.S. — and Apple leads the charge.
It’s simply amazing what this company has done in the span of just the past five years, with iPods, iPhones and iPads. The Apple craze is taking hold around the world, as consumers here and abroad embrace the Apple ecosystem. As a result, many investors have made a killing in Apple common stock. But what a lot of investors fail to realize is that there’s more than one way to take advantage of the iPhone and iPad craze.
There’s a whole food chain by which we can all make money in Apple by buying the suppliers and service providers that carry Apple services over the hard line and wireless part of the world.
I mean, we all used to just have a simple cell phone, but now with Apple applications, we’re seeing data plans for service providers around the globe simply explode. Here at Cash Machine, our very own Verizon (NYSE:VZ) recently hit 52-week highs — despite the market struggling to find a bid.
But I think it’s vital for us to look outside the U.S. beyond AT&T (NYSE:T), Verizon and even China Unicom (NYSE:CHU) — all recognized leaders carrying Apple products — and instead, focus our attention on a select few of the 200-plus telecom operators out there that have yet to, or are just starting to, offer Apple products as part of their network.
Many global telecom companies already have converted to wireless, are now fully functional and able to take on Apple products with ease. And if we can identify those companies that offer a sizable dividend yield as well as the potential for massive subscriber growth, we’re looking at a story with tremendous upside.
A number of countries right now are simply bypassing hard-line infrastructure and going straight to wireless — which really is a compelling opportunity.
Take Europe, for example. While the region is getting throttled by the sovereign debt crisis and Europeans are cutting back on their discretionary spending, they’re not giving up their iPhone. In fact, we’re seeing a growing dependence on iPhone and iPad applications, as folks want to get more and more done from a single location instead of traveling.
So what used to be a personal consumer item, whether it was the iPhone or iPad, is quickly being integrated into the corporate world. There’s a whole new wave coming here, and you stand to make a boatload in companies like Vodafone (NASDAQ:VOD) and Deutsche Telekom (PINK:DTEGY).
Vodafone is the largest European telecom company and has a 40% ownership in Verizon Wireless — which, as we all know, is fully capable of supporting Apple applications. And it throws off almost 6% in dividends.
Deutsche Telekom is another major company in Europe, whose shares have been hammered along with Italian and Spanish telecoms. But its current dividend yield is 11%, which makes it an incredible buy at these levels.
Here’s why: Both Vodafone and Deutsche Telekom are extremely well positioned, have bulletproof balance sheets and are in two of the most stable countries in the eurozone: the United Kingdom and Germany.
So what I see are two companies that are in the go-to area for utilities and offer tremendous upside potential.
Moving outside of Europe, down to the South Pacific, there are two more telecoms throwing off big yields and are located in two of the most stable economies there: New Zealand and Australia.
Thanks to Australia’s rich commodity resources, the country is enjoying 3% to 4% GDP growth and a low inflation rate — a very stable environment for investors. The 800-pound gorilla in Australia’s telecom space is Telstra Corporation Limited (PINK:TLSYY). It’s throwing off a dividend yield of 7% to 8%, which you just cannot get in the U.S.
Telstra is the leading telecom in Australia, and it already offers many Apple products. In fact, in March, the company revealed that it would offer data plans for the iPad3 to connect to its mobile network
And New Zealand probably is the No. 1 destination for wealthy Asians who are looking for a getaway spot or to purchase the country’s soft commodities. The name here that I like is Telecom Corp. of New Zealand (NYSE:NZT), which pays investors a 7% dividend yield.
Like Telstra, NZT is New Zealand’s largest telecom and offers Apple products like the iPhone to its customers. And the company currently is testing its new XT network, which will switch from 3G to 4G later this year.
Bryan Perry is the editor of Cash Machine, a weekly financial advisory that focuses on high-yield investments that provide cash payments month after month — no matter what happens in the stock market and global economy. In his brand-new report, 18 Breakout Payout Stocks that Will Pay You Up to 15% Annually Guaranteed, Bryan names 18 stocks and funds that will pay you up to 18% annually, as well as all the details on how to get started collecting fat income paychecks month after month. To access your FREE copy, go here now.
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