Every decade, there’s a new technology that provides a step change in what we can do with our iPhones. Today is the beginning of a new era for iPhone.
That’s how Apple (NASDAQ:AAPL) CEO Tim Cook announced the new iPhone 12 on Tuesday.
Is that just marketing hype?
To some degree, yes. Of course it is.
At the same time, there are cool new features, including a new OLED screen with higher resolution. And while this version isn’t foldable, I’m convinced more than ever that day is coming … as foldable screens also used the OLED technology.
There’s an improved camera, a faster processor, stronger glass for the screen, newer and faster ways to charge, and an improved battery.
All exciting new features, but I don’t think any of those rise to the level of “a new era.”
Here’s what does …
When the iPhone was introduced in June 2007, very few people imagined how it would change our world.
One of the most famous reactions came from Microsoft’s (NASDAQ:MSFT) CEO at the time, Steve Ballmer, who said there was “no chance that the iPhone is going to get any significant market share.” He wasn’t alone.
Thirteen years later, the iPhone is arguably the most influential electronic device on the planet. So while it’s tempting to read right past Tim Cook’s pronouncement of a “new era,” he’s talking about the future of communications that you and I have been talking about for some time now.
It’s been widely expected that the new iPhone would also connect to the new wireless network — the 5G superhighway — and now it’s official. 5G is rolling out across the globe already, and with the new iPhone capable of connecting to it, the attention, credibility, and dollars pouring into 5G will accelerate.
T-Mobile (NASDAQ:TMUS) CEO Mike Sievert called the new iPhone the “firing gun on 5G.”
Verizon (NYSE:VZ) CEO Hans Vestberg said that “5G just got real.”
The 5G network will support lightning fast internet connections — 100X what you’re used to today. Literally almost the blink of an eye.
And this connection is shaping up to be one of the most transformative and lucrative technological advances many investors are likely to see in their lifetimes.
It will be great for online classes, Zoom chats, streaming video, playing video games, and all those other things people are doing at home. In the new phone, the faster, more reliable and more secure connections will enable higher quality video streaming, high-definition FaceTime calls (which could be frightening), better gaming, and real-time interactivity in apps.
But that’s just the tip of the iceberg.
In the stock market, the farther out you think … the more money you make. The new iPhone may be the starting gun, but we want to look far into the future and find the unknown companies ready to capitalize on the massive new 5G information highway.
I’m talking about finding small innovators like Netflix (NASDAQ:NFLX) in 2007, right when it invented streaming and before it took off thanks to the 4G communications network.
I’m talking about companies like Uber (NYSE:UBER) in 2010, right when it pioneered ride sharing and also capitalized on smartphones and the 4G network.
4G was an improvement. 5G is a game changer.
Take the long-term view and you’ll see that it’s the life-changing technologies 5G will enable that really blow your mind.
Robotic surgeries. Telehealth. Augmented and virtual reality (AR and VR). Self-driving cars. Smart cities. And trillions of connected devices known as the Internet of Things (IoT).
All told, we’re looking at breakthroughs and advances worth more than $56 trillion.
But there’s a problem.
A lot of talking heads recommend plays on 5G’s “infrastructure” — the communications component makers, for instance. The problem is, that’s sort of a “once and done” revenue opportunity.
That’s good, but not great.
The real wealth-building opportunity is much, much larger. If you think of 5G as the new superhighway — and it is for our data — you can see how the huge, life-changing money is made not from its construction but by owning businesses that bloom and flourish because of it for years and even decades after its built.
There is no doubt that 5G is setting up incredible opportunities, and they just got another catalyst with the new iPhone.
That’s why I created the 5G Highway Portfolio filled with stocks set to capitalize for years to come. All eight stocks are up since I recommended them, including one that’s doubled in just the last five months.
These are the “next booms” — lesser-known companies building businesses along the huge new 5G highway.
The rollout has continued right through the pandemic, and with the big iPhone announcement the coming disruption got that much closer. Stocks are already moving, but there is still time to get in early enough to make the biggest profits in this “new era.”
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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