Many on Wall Street have been waiting to see what Apple (AAPL) is going to do next. Many investors believe that Apple is past its prime and the only way to go from here is down. I don't believe that to be the case. Apple is one of the most innovative companies of our time, and I expect it to remain a technology leader for at least the next few years.
Bloomberg is reporting that Apple TV may be in the works. Now we aren't talking about the TV box that you connect to the TV; Apple is working on making a full flat-screen TV. Apple realized that the only way to do it right is to do it yourself. The company had difficulty getting acceptance of its TV box, but I believe this next strategy is going to bring huge profits for Apple.
The hardest thing about software and hardware is getting them to work well together. Having full control of the product from manufacturing to distribution has always been Apple's recipe for success.
Apple TV will open huge possibilities for the company, and possibly open a whole new industry for Apple once again. I could see Apple allowing television show subscriptions for just the channels you want. Apple could generate new revenue from advertising, new applications and possibly subscription revenue from channels that are allowed to play in the new Apple TV. This could generate an additional $14 billion dollars annually for Apple. The new Apple TV is expected to launch around December 2012. I expect this to be the next big thing for Apple, and I look forward to seeing the profits roll in.
Apple also developed a new 3-D technology that will revolutionize the way 3-D is delivered. I could see this new technology being built into the new TV sets as well. (Read more about the new Apple 3-D technology.)
I'm bullish on Apple and view pullbacks as buying opportunities. I expect a lot more upside from Apple with a new iPad that is expected to launch after the release of the iPhone 5. I expect even bigger things as the new Apple TV hits stores next year.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours.