If you live in Hawaii, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, Oklahoma, Rhode Island, Utah or Washington … you’re out of luck.
I’m talking about your chance buying an iPhone, Apple’s newest device. It flew off shelves last week, and is now harder to find than a needle in a haystack.
No doubt about it, the gadget’s debut was a smashing success. Zealous iPhone buyers emptied out nearly all of AT&T’s 1,800 stores in a single day, and snapped up an estimated 700,000 iPhones.
And since most iPhone buyers opted for the eight gigabyte (8GB) model, which retails for $599, Apple could have pulled in as much as $300 million in just one weekend!
CEO Steve Jobs has repeatedly said that the iPhone will become Apple’s third main business segment, alongside the iPod and Macintosh computers. Moreover, he expects it to become as profitable as the company’s music player!
Apple is already taking steps to increase its manufacturing capacity, but it still isn’t enough. According to Jobs, “We’ve taken our best guess, but it wouldn’t surprise me at all if it ain’t enough.”
The company’s stock? Well, I’m happy to say that my Elite Stock Trader subscribers have owned it since last year. Since then, it has skyrocketed as the company continues to blow away analyst expectations.
Don’t think for a minute that Apple shares are fully valued yet, either! You watch — the iPhone is going to transform (and dominate) the mobile phone business.
And even though I love Apple,
There Are Lots More Opportunities
Farther Down the Food Chain …
Look, 451 parts go into each iPod. And if anything, the iPhone is an even more complicated device!
I think the companies that make and assemble these devices are chock-full of investment potential. As you might guess, there is a very direct connection to Asia in there, too. Let me show you …
Japan: The most expensive component in the iPod is its hard drive, which is manufactured by a Japanese company — Toshiba.
The Philippines: Of course, Toshiba makes a lot of its hard drives in the Philippines.
South Korea: Samsung provides the iPhone’s main processor. In other words, South Korea provides the device’s “brain.”
Taiwan: Apple outsources the entire iPhone manufacturing process to several Taiwanese companies: Asustek, Inventec Appliances and Foxconn.
China: In turn, those three Taiwanese companies have most of their factories in mainland China. In fact, Foxconn has a manufacturing center in Longhua, China that is so large it has been nicknamed iPod City. It’s a massive complex where 200,000 Chinese work and sleep.
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Here’s the best part: Every one of the Asian companies I just mentioned is publicly traded and can be purchased by U.S. investors.
Sure, some of them can only be bought on foreign exchanges, but as I’ve mentioned over and over, that’s no longer expensive or difficult! Investing in major foreign markets — like Japan, Hong Kong, and Singapore — is easy as pie these days.
Of course, even if you’re only interested in domestic stocks, don’t worry — the U.S. isn’t getting frozen out of the iPhone bonanza.
The video processor chip and the input/output controller chip are made by PortalPlayer …
Micron makes the camera sensor …
Texas Instruments provides the power-management chip …
Marvel Technologies delivers the Wi-Fi chip …
And Skyworks makes the front-end power amplifier.
Plus, don’t forget about AT&T … they’re providing the wireless service!
Best wishes,
Tony
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