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  • Tech Bubble Has A Way Of Re-Inventing Itself 0 comments
    Jul 13, 2014 9:38 AM | about stocks: AAPL, MSFT, FB

    Over the last few years, Google (NASDAQ: GOOG), Samsung Electronics (KRX: 005930) and HTC (TPE: 2498) have reinvented wearable devices. Google with its Google Glass, and Samsung and HTC with the smartwatch. Apple (NASDAQ: AAPL) also seems to be buying into this new paradigm shift and is widely expected to introduce its own new age wearable device, which many believe would be evolutionary in the smart devices market.

    The wearable devices industry is bound to become one of the hottest markets in the near future due to the following reasons.

    First, consumable technology has gone mobile, and this seems to be the threshold for innovations in the industry. Wearable devices are incredibly mobile, which means they blend in with the new paradigm shift seamlessly. This means that mobility will not be an obstacle.

    Secondly, consumable technology is aimed at making work easier for people, as well as bringing efficiencies in the way people operate. Wearable devices are more than about making things easier for people. Reports suggest that Apple's rumored iWatch (hand/wrist gear) will carry several features and functionalities, enabling improvement of the well-being of the wearers. This is yet another catalyst for an attractive market.

    Third, wearable technology is consumable, and hence, its market could be projected based on human population. Assuming a healthy uptake of technology, the market could be as huge as everyone who is able to afford the various devices. Therefore, this might at some length, spark price competition.

    Finally, wearable tech like GoogleGlass appears to be very compatible with other forms of technology, which means this enhances its chances of penetrating the market. Virtual reality is becoming an enterprising opportunity in the tech space, and while Facebook (NASDAQ: FB) has already taken a huge step by acquiring Oculus VR, it appears as though Google Glass is very much within this field and could prove crucial in the wearable tech market.

    Overall, these factors appears set to balloon this emerging market to new heights forming some sort of a bubble like we have noticed in the recent past with other realms of tech. The most interesting part is that initially, very few companies were interested in wearable tech, but the numbers now continue to stream in with companies launching various wearable devices. Software and application developers are also developing a keen interest in this industry, and as we know, they too are crucial for a progressive tech market.


    In summary, the progressive nature of technology appears to be the sole purpose of why we are bound to witness several tech bubbles in the market. However, the trick lies in the investor's ability to analyze the opportunity early enough before the bubble grows larger. It is important to get in at the right time to avoid being blown by the bursting bubble.

    The bottom line is that now appears to be the right time to buy into the new bubble that is yet to establish itself to the point of being recognized as a bubble. The company that exploits this opportunity in its totality would make a good buy, and both Apple and Google appear to be on the right track.

    Disclosure: The author is long FB, AAPL.

    Stocks: AAPL, MSFT, FB
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