Chris’ note: Colleague and Silicon Valley insider Jeff Brown is our tech expert here at Legacy Research. He tracks megatrends in the tech that’s reshaping the world… and translates his insights into profits for his readers.
And tomorrow night, he’s hosting a special event all about the No. 1 profit opportunity on his radar right now. It’s all to do with Apple’s next big launch…
As Jeff shares below, the knock-on effects of this tech could put more than $12 trillion in profits at stake.
He’ll explain everything tomorrow at 8 p.m. ET. He’ll even give you his first trade for free just for showing up. Reserve your spot here.
Then, read on to hear from Jeff how the knock-on effects of Apple’s tech have already propelled the success of loads of other companies.
It was Apple’s Macworld conference in January 2007…
Wearing his signature jeans and black turtleneck, Apple (AAPL) cofounder Steve Jobs walked on stage in front of a crowded audience.
He said he was about to reveal a “revolutionary and magical product that is literally five years ahead of any other mobile phone.” That device was – of course – the original iPhone.
It went on sale in June of that year. In the first weekend alone, as many as 700,000 iPhones sold to eager customers. By the end of 2007, 1.4 million iPhones were in buyers’ hands. Time declared the iPhone the invention of the year.
In hindsight, it’s easy to recognize the significance of this tech. The iPhone is arguably the most iconic consumer electronics product in history. Today, 47% of all smartphone users in the United States use an Apple iPhone. The iPhone – more than any other of the company’s products – is chiefly responsible for Apple becoming one of the most valuable public companies in the world, with a market capitalization above $2 trillion.
And, of course, investors in Apple have made incredible returns. Any investor who bought AAPL shares the month Jobs revealed the original iPhone is now sitting on returns in excess of 4,500% as of this writing.
But investing in Apple wasn’t the only way to gain exposure to the revolutionary trends the iPhone unlocked. The device’s incredible success had “knock-on” effects for other tech products and services.
In fact, Apple has kickstarted a number of major tech trends that have made people rich…
A perfect illustration of Apple’s influence is the App Store. While Apple didn’t invent the concept, the richness of its platform popularized many services we enjoy today.
From its launch in 2008 with a mere 500 apps, the App Store has grown to more than 2.2 million apps to date. Companies now optimize site versions for mobile devices before those for desktops.
One company that benefited from this “mobile-first” trend is Zynga (ZNGA). Zynga was founded in April 2007, only a few months after the reveal of the original iPhone. Most of us probably know Zynga as the company behind the popular online game Words With Friends.
Today, Zynga is one of the top mobile gaming companies in the world. During its Series A round in January 2008, it had just a $17 million valuation. Now, as a public company, Zynga boasts a valuation of $8.3 billion as of this writing. That represents a return of 48,700% for private investors who have held on since the Series A round.
Or consider Facebook (FB). We might not think of it as a company that benefited from the creation of the iPhone. But you may be surprised to learn 79% of Facebook users interact with Facebook products exclusively through their mobile phones. And 75% of Facebook’s traffic and revenue comes from mobile phones.
If not for the iPhone – and the subsequent smartphones it inspired – Facebook would be a fraction of the company it is today.
Likewise, half of all users of Spotify (SPOT) – the popular music streaming service – are “mobile only.”
And 25% of all Amazon (AMZN) Prime orders originate from its mobile app.
In fact, all the popular companies in the image below have benefited as a result of the iPhone’s success.
All these popular companies owe a great deal of success to the iPhone
I’d be willing to bet that anyone using an iPhone uses at least one of the services pictured – probably several of them. Each of those businesses is worth billions of dollars. Some are worth hundreds of billions.
Mobile devices like the iPhone (combined with 4G mobile bandwidth) made all these companies what they are today. Needless to say, this presented some of the best investing opportunities of the last decade.
And Apple’s influence doesn’t stop there…
Apple’s success has helped bring other new technologies to mainstream attention. After the release of its 5G-enabled iPhone last year, for example, we’ve been seeing a wave of companies benefit.
The success of the 5G iPhone cascades down to the manufacturers – including semiconductor companies – as well as companies building new apps using 5G tech.
In fact, we’ve profited off several of Apple’s suppliers at my research services. We’re currently up 48% on one key Apple supplier. We’re up 44% and 107% on other manufacturing companies benefiting from Apple’s influence. So whenever Apple makes a big move, we pay attention.
That’s the important message I have for readers today…
I see a situation unfolding with Apple that will lead to the next round of knock-on effects… and the next big opportunity for us to profit.
You see, Apple just revealed its next big launch. And I believe as much as $12.3 trillion could be at stake as this new trend takes hold.
That’s why tomorrow at 8 p.m. ET, I’m going live to share the details on Apple’s big announcement – and what’s coming next. As I’ll explain, this is a potentially life-changing opportunity… and right now is the perfect time for investors to get in position.
To learn the latest, please go here to RSVP for this exclusive event. It’s completely free.
I hope to see you there.
Editor, The Bleeding Edge