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TheStreet Open House

4 New Reasons for Apple Stock to Bounce

Stocks in this article: AAPLHPQMSFTRIMM

NEW YORK ( TheStreet) -- Steve Jobs couldn't help himself, he just had to sit in on Apple's (AAPL) first $20 billion quarterly conference call. His presence certainly added to the depth of insight coming from Apple management.

In fact, Jobs revealed four insider opinions on the future of tech that if true, will result in Apple stock continuing its run to overtake ExxonMobil (XOM) as the world's largest cap stock.

Steve Jobs

As a rare jack-of-all-trades innovator, Apple is blazing a trail that no company has ever traversed. Consider the following four insights from inside the brain of Steve Jobs:

1. Touch Screen Software Is King. Jobs jabbed, "We've now passed RIM. I don't see them catching up with us in the foreseeable future. It will be a challenge for them to create a mobile software platform and convince developers to support a third platform." He continued, "Touch screen software OS is difficult to produce."

Research in Motion (RIMM) has lost its position atop the smartphone totem pole because of their inability to produce a reliable touch screen OS. Microsoft (MSFT) had to abandon its touch screen courier tablet and replaced it with the 7.0-inch dual screen tablet that includes an old fashioned keyboard with an anemic two hours of battery life. Although Microsoft would never admit its reasoning behind the switch, rumors persist that they couldn't get the touch screen OS to function properly on the larger screen .

HP (HPQ) had to delay its slate tablet, then it abandoned its Android tablet, and now we are waiting to see if they can produce a WebOS tablet. Apple software competitors were caught off guard and unprepared to replace the click of a mouse with the touch of a finger. Don't let those headlines that proclaim a "disappointing" 4.19 million iPad sales fool you.

The iPad is set to explode with its 10,000 Walmart (WMT), Target (TGT), AT&T (T), Verizon (VZ) and Apple store distribution points for the holiday season. I'll let Jobs have the last word, "We've got a tiger by the tail here, and this is a new model of computing which we've already got tens of millions of people trained on with the iPhone, and that lends itself to lots of different aspects of life, both personal and business," he said.

2. China Is the Prize of Prizes. U.S. companies would give anything to produce a hit product for the Chinese middle class. It appears that Apple's precedent in Japan is replicating itself in China . Both countries were slow to adopt the iPhone in the initial year of availability but both countries saw demand outstrip supply in year two. Japan is usually ahead of the rest of the world when it comes to adopting new technology. They were the first country with universal access to 3G networks and now Japanese consumers have rewarded the iPhone with 72% of smartphone market share .

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