Apple earnings are increasing by the triple digits, how in the world can a company continue to grow this fast when it is already one of the biggest companies in the world? The answer is by consuming other industries. Apple for the most part consumed the compact music player industry with its iPod along with the earnings that use to flow into record stores flowed into the iTunes store. Then they consumed a big chunk of one of the biggest industries on earth, the cell phone industry where all the money that was going to Motorola, Nokia, and the BlackBerry maker RIMM was diverted and flowed into Apple with their game changing iPhone. Then not to rest they attacked and conquered the emerging computer notebook market with their iPad.
“The whole world is simply nothing more than a flow chart for capital.” – Paul Tudor Jones
“Capital flows to where earnings expectations grow” -Steve Burns
Right now we are seeing investor and trader money flowing to where the earnings are growing, it is as simple as that. Along with the realization that Apple is not too big to grow, it has become too to fail.
- Who in the world truly needs a home phone when everyone in their family has their own iPhone? Cell phones were the beginning of the end for land lines but I believe the iPhone is the end of the home phone.
- Music stores? We quit going there and starting down loading music directly from the iTunes store to our iPod a long time ago.
- Digital camera sales have started to really fall off because the iPhone 4 has a camera built in that is as good or better than most digital cameras.
- Video cameras are not needed becasue our iPhone has a great one right there in the palm of our hand, and we can post it directly to facebook with no PC needed.
- Our iPhone has an excellent calculator as good as most we would buy.
- We do not need to buy and wear a watch with our pocket computer having a built in clock that we see every time we use an app.
- No need to go to the weather channel with our built in weather app in our iPhone.
- I generally use my Personal Computer 50% less with all my phone apps, why mess with a computer when you have your iPhone ready to go.
- The Kindle app for the iPad is making print books obsolete very quickly.
- Who needs a radio or compact disc player when you can plug your iPhone or iPod into speakers and listen to your personal library of music.
- We do not need a GPS when we have the right app on our iPhone.
- We do not need to visit MapQuest.com if we want a map we have an app for that.
- I do not call my broker if I am out and need to trade I use my mobile trading app.
- I do not need to go to a bank teller I can transfer money from my savings to my checking with my bank app on the way to a store.
- I do not need a flashlight I can just visit the app store for a flash light app for my iPhone.
This is just the beginning as technology is layered on top of technology to create better and more convenient uses of our iPhones and iPads. An iPhone is not a ‘cell phone’ it is a pocket computer platform that can be built upon by all developers. It is a turning point in technology. Welcome to the future.