Sep 122013
 

Apple recently revealed their new iPhone 5s and iPhone 5c. Some folks are saying the “s” stands for Same and the “c” stands for Cheap, ๐Ÿ˜† But joking aside I think the mobile market will be one of the best places to make money in the future for those who invest today.

Step 1: Research

This is when you read media releases, statistics, analysis, and other information about mobile phones to gather facts and decide whether you want to invest in this space or not. Over 6.6 billion mobile phones will be in use by the end of 2017, according to CCS Insight. Most of them will likely be smartphones. Tablets are also expected to grow in sales over time. Mobile advertising will inevitably also benefit from this trend. The global ad market for mobile devices is estimated to be $11.4 billion this year, and is expected to be $24.6 billion in 2016, according to statista.com.ย 13-9-mobilegrowth

A common misconception is all the future mobile phone growth will come from emerging markets since developed countries have already reached market saturation. Fiddlesticks! A report by Google shows that only 56% of Canadians have a smart phone today, which is an amazing increase from 33% in 2012, but there is clearly more room for growth ๐Ÿ™‚

Step 2: Take Action and Profit

Once you’ve decided to invest in the mobile market it’s time to pick a strategy. Personally I like the idea of holding three particular stocks: Apple, Google, and Qualcomm. And slowly increase my positions in them over time. Apple’s iPhones and iPads represent a large part of the market. Google is very deeply entrenched in this space as well. With the purchase of Motorola, and its close partnership with Samsung Google’s Android platform has become very popular, very quickly. Google will also benefit from the ad revenue growth. In 2011 iPhones were super popular and AAPL shareholders were very happy. This year however Android devices are the hip thing to buy so AAPL has gone down, and GOOG has outperformed brilliantly.

We don’t know which company will dominate in future years, but we can predict with a good amount of certainly that the overall mobile market will grow. Therefore, if we own both leading players, then it doesn’t matter if one steals market share from the other, because we won’t lose out on anything, and will ultimately benefit from the industry as a whole ๐Ÿ˜€ I currently have 3 shares each of AAPL and GOOG. I plan to buy 2 more shares of AAPL later this year to lower my ACB. In the future if GOOG drops in price, I will do the same, etc.

Related Post: Google the Tech Giant

Qualcomm develops much of the technology that goes into smart phones. They have patents on 3G and 4G networks, and they engineered the CDMA standard. Their revenue comes from royalty streams. In other words, they get paid whenever someone buys a new phone using their technology, which is pretty much every new smart phone out there. I currently don’t own any QCOM, but plan to buy 30 shares in November to complete my mobile trinity. Over time we’ll see if my 3 stock plan works out ๐Ÿ™‚

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Random Useless Fact: Bees have hairs growing out of their compound eyes. The hairs detect wind direction and help them navigate better.bee-eye

 

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10 Comments on "The Mobile Trinity – It’s Going Places"

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Phil
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The only way to make money from products are if they are niches, you make them cheaper than everyone else or you catch the wave before everyone else. I personally think ipads and iphones are limited in their uses and will begin a downward usage trend in their current form. From a business perspective they are quite limited to basic communication (texting, talking and surfing). Going forward I think something like the Microsoft surface tablet is what we will se more of. These replace laptops and archaic desktops and can in a similar form to an ipad also perform business tasks being able to create documents, spreadsheets etc… Knowing how inventory warehousing works with pickers picking products etc. from a warehouse floor, I can foresee the current very expensive wrist scanner devises being replace by these more functional tablets… My opinion obviously, but I think Apple has or is near to having peaked… As to Google, they really need to figure out how to create real tangible revenue from from something that is free currently, and I believe that will be a challenge. Myself, I believe the real money is in the services and companies that use these “tools” –… Read more ยป
DebtGirl
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I think this is brilliant! As soon as I get debt free I will start my investing and come to you for advice!

Marissa@Financetriggers
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Great insights on this post. Thanks for sharing!

Hunain @ HowToSaveMoney.ca
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I always wanted to open a mobile shop business, because nowadays I think it is the most vibrant business. I will definitely do some research before opening a shop or retail mobile phone business though because such a venture could be risky.

Steve @ The Silver Maple Leaf
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Steve @ The Silver Maple Leaf

Love the take on the trifecta of Apple, Google, and Qualcomm. I actually never would have thought about the significance of Qualcomm if you hadn’t mentioned that they make so many of the components of modern smartphones. All the information was in my head about Qualcomm, but I never made the connection ๐Ÿ˜›

Also, I’m pretty sure that fact about bee eyes was the coolest part of this post (no offence to all things investing/finance)!!

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