This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 New Reasons for Apple Stock to Bounce

Stocks in this article: AAPL HPQ MSFT RIMM

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 .

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs