Your time. Your Money. Your Attention. Your Trust.
They got it. And they've earned it.
Apple owns the most valuable real estate in the world, your pocket. Apple is the human companion, an extension of the modern man, woman and child. Always within reach.
The phone is not the end for Apple. It's the beginning.
I love to ponder the future. I spend hours of the day doing so. As an investor and writer my thoughts are optimistic on the future. So what will Apple do with all this money, power and respect. Below are my positive thoughts.
1.
What replaces the phone? Whatever that may be, it will be a welcomed innovation. I imagine all big tech rapidly working on this. I would also assume Apple is leading in the development of this product. They have the quality, reputation and most desirable brand. They also have the most to lose if a competitor company beats them to this innovation.
I imagine this device or connector/connection as a hands free personal network. Visually seen through multiple displays. I think Apple will use the Augmented Reality in development as a key feature benefit. Stylish glasses seeing AR and projected imaging from an enhanced Apple watch face seem likely. I'm hoping for a form of command and control through tiny wearable sensors (like small apple logo stickers) on your fingertips to scan, search, choose your information and applications. Your finger tips will control the large Augmented Realty screen in front of you rather than using your fingers to touch/scroll/scan/type on today's tiny phone screens. This will be a nice uptick in personal health and well being too. I find myself often with bad neck posture habits constantly looking down at the phone. Voice commands will certainly bring another control option to the user. It's also likely you will still have the Apple tiny computer "phone" in your pocket bringing this all together. Overall, freeing up your hands and eliminating a single fixed stationary display will be very welcomed benefits.
2.
Payments/Banking/Lending.
Big Banks and the services they provide are ripe for disruption in a big way.
Apple seems well positioned in this space.
They have an existing payment platform. Apple Pay adoption, usage and volume will continue to grow. The adoption and enormous volumes seen in payments from China tech giants could be a sign of what's to come (Alibaba and Tencent).
For potential banking services, Apple's strong security reputation and strong balance sheet should help. Here is a thought, Apple has more cash on hand than any company in the world, how's that for capital requirements. The physical bank branch is quickly becoming less important. The phone with it's camera deposit capabilities can handle most deposits. Having a connected Apple application to interact with ATM machines would eliminate the cash problem. So, almost today, the phone replaces the bank branch. Lastly, lending is the most painful and necessary part of a bank you probably deal with today. Again, the data, security and knowledge of the customer puts big tech in the lead to service your debt of the future. Apple has more capital on hand than any lender in the world. Amazon is already quickly growing in the lending space. I've read this is a less risky loan to the issuer (Amazon) because of the ability to issue loans with a more accurately calculated ability of repayment or default. Again, I feel the banking industry will lose big market share to technology companies we trust and view as secure.
3. Content
Everyone wants good content. I think companies that have future staying power will have one, two or all three of the following: a platform, a great brand and great content. I think Apple checks all the boxes. On the most recent quarterly conference call Apple noted increased spending on content. It seems the current leaders in this space are Netflix, Disney and Amazon. I am optimistic that Apple can make money in this space.
4. Security
Apple has a great reputation with security. Security is going to continue to cement the strength of the Apple brand. Tim Cook seems to enjoy making pointed comments aimed at Facebook quite often. I hope Apple focuses on the following key form of security. Protect the customer. Or in other words protect the "Product." We the people are the "product" being sold for the benefit of giant advertising companies like Facebook. I have long thought that a company will not only find a way to protect the human product, but allow the people to share in the money being made off of their data. If I am an affluent high income earning consumer, my data carries good value for targeted advertising. It's time to protect consumer information, and if a "seller" wants it, it's time to give the "buyer" some financial incentive.
5. Search
A broadly used secure search product sounds nice. I think Apple is the only company that could sell the idea and people actually believe it.
6. Cloud
Cloud. Cloud. Cloud. AI and Cloud are the two buzz words for growth. Amazon, Microsoft, Google, Alibaba the list goes on and on. Apple iCloud is the only fee I pay for Cloud storage (not any of the companies above). It seems like a decent value too. I pay $0.99 a month. The business enterprise Cloud for Apple is where the big dollars will be earned.
7. Style and Fashion
The future of wearable tech is no doubt going to be cool. Apple, again, is a cemented luxury desirable brand. Is clothing ready for innovation. I say yes. Collaborations with fashionable design and apparel should only increase the desire and demand for the brand. I am eager to see how this space develops and grows.
8. Gaming
Gaming is big and getting bigger. There is a long growth runway in this space. Apps, Augmented Reality, Virtual Reality, E-sports...there is a lot going on.
9. Living inside the computer
For now I am talking about ideas like autonomous cars. It seems Tesla has created an awesome looking super computer that has the physical functionality and qualities of a car. This is a futuristic concept that will change the world as we know it. In the future we will spend most of our time inside huge connected computers...cars, homes, stores, and office buildings.
10. The computer inside you
The future of healthcare? Apple seems to be innovating and spending on connected health monitoring. Will we have tiny technology floating around our body searching, scanning, diagnosing our health problems. What about enhanced camera capabilities to scan and monitor the outside of our body for signals of health or deterioration. Healthcare is an area of hardware and software. Apple does that, right?
I like to view the future as a positive place. I also enjoy viewing the future as a place where we continue to make money as investors. Share this blog if you and others you know enjoy being positive about the world of business.
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