Apple in the Living Room: A Logical Marriage and Boon For Stockholders

Sep.13.06 | About: Apple Inc. (AAPL)

If bringing sex appeal to geeky tech gadgets wasn't enough, Apple (NASDAQ:AAPL) made its debut in the living room yesterday. The highly touted "Showtime" event saw the news sold off quickly. However, longer term investors should take the opportunity to note the direction Apple is heading.

Partnerships with Google (NASDAQ:GOOG) and Disney (NYSE:DIS) signal the changing of guard in tech world. Microsoft (NASDAQ:MSFT) remains caught in its own monopoly and has demonstrated a complete inability to innovate since it first introduced Windows. Meanwhile, Dell (NASDAQ:DELL) continues to display a lack of understanding of the consumer.

Apple however has brought fashion appeal to technology and it will continue to leverage its iPod success into other areas. PC market share is only the start. Now Apple makes its move in merging the television experience with the Internet, a quite logical marriage.

Concerns will abound regarding the device, but ultimately iMacs mounted in living rooms will become a norm and Apple will become the de facto standard in DVD sales, just as it has become for MP3s. Advancing technologies, like the Baby Bells' fiber to the home initiatives, will open the door for a whole new digital media experience, as the merger of TV and Internet is now underway.

The potential seems endless, and Apple will be right at the forefront distributing content and selling hardware. Longer term investors will be well rewarded for owning the new face of technology, Apple.

Disclosure: Author is long AAPL