Why You Need Apple Inc. (AAPL)

Google’s Android Operating System is giving Apple a run for its money. According to mobile phone tracker Kantar, Android owns nearly 70% of the European market, a 9% increase from the previous year. However, Apple hopes that its low cost iPhone will address the threat posed by Google’s Android Operating System via Samsung, especially in emerging markets. Even though its margins will not be as large with the low cost phone, securing a foothold against Samsung will position Apple to, at a minimum, stop Google’s platform from advancing further.

Apple is also facing a potentially more powerful, efficient Microsoft. Expecting to expand into new markets and be more competitive, Microsoft continues to innovate. In fact, CEO Steve Ballmer announced that Microsoft is undergoing major a restructuring to streamline its business segments. Microsoft used to operate various business units, and many had different goals or objectives. But now, Ballmer’s goal is to focus Microsoft’s business segments and strategy so that the company can maximize synergies and therefore operate efficiently. Investors should follow the developments because Microsoft will likely come out of the adaptation swinging.

Like its competitors, Apple Inc. (NASDAQ:AAPL) is showing signs of growth as well.  Numerous sources and news articles reveal that Apple CEO Tim Cook plans to debut several new products before year end. The innovation could potentially include items like a watch, tv (which I think is unlikely), and newer versions of existing products. Rumors for the new product launches could help explain Apple’s strong balance sheet – it wants to be versatile moving forward. The hype and mystery about Apple’s coming product lines hint that much more is to come.

Conclusion

The technology industry is ever changing – one of the reasons why Buffett tends to steer clear. However, profits can be made when investors recognize firms that are moving in the right direction. By generating investor value, effectively stewarding capital, and pursuing new opportunities, Apple is one such firm.

The article 3 Reasons Why You Need Apple originally appeared on Fool.com and is written by Brendan Marasco.

Brendan Marasco has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Brendan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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