I’m a Believer

I am not quoting the Monkey’s from the 1960s nor am I making a religious statement.  

I have to admit that I am consistently amazed by Apple Inc. (NasdaqGS: AAPL). In a discussion with one of my tech analysts, they questioned if the new device (soon to be announced) will have an option to be just wifi. If the new device is a Kindle killer and more, and not a phone at all, for many users it will not require hooks into Verizon Communications (NYSE: VZ) or AT&T (NYSE: T). She assures me I could purchase all the magazines, text books and apps I want just from wifi and not need a cell hook.

After reading the NY Times last week and learning that the iPhone and iTouch can download Grand Theft Auto it now rivals our Wii. I have also noticed how much less my kids use their DS since getting Apple upgrades (now to iTouch, living in NY, we will not get iPhones until the day they work with Verizon). Clearly, the Apple team has designed the Swiss army knife of hardware, pared with so many apps, for so many types of solutions and uses.

Gaming, music, video and movies, GPS and navigation, and even a card counting app that is banned from Las Vegas, along with thousands of other categories of apps are the new norm from AAPL’s app store. Soon, books and all print materials, even those not well formatted for the web will sing from the newest creation.

Steve, I am consistently impressed as a consumer. For the past year, I have also been impressed as an investor by Apple’s innovation and the numbers posted. Impressive numbers such as an operating margin that is smack between that of a hardware manufacturer (with zero debt) and a software producer, along with strong free cash flow and return on equity.

Earnings are coming soon and expectations are high. The stock is near its 52 week high and my investors have benefited. The numbers, not salesmanship will once again display the cold hard facts. I am waiting, and holding, hoping to be impressed yet again.

Disclosure: Mr. Corn is Chief Investment Officer – Equities of Beacon Trust Company. Through various equity strategies under his supervision he is currently long AAPL, RIMM, VZ and T.

Second disclosure: Mr. Corn carries a Blackberry and iPod, and has used both Macs and PCs at home since the early 1990s.

Comments

[sfgirl]

I think apple is ingenious with their ideas, but i have yet to understand how ipad is going to revolutionize the computer industry as ipods did the music industry.