Over the past couple of days I have been seeing more and more people talking about a possible ibank. I guess you can call it whatever you want, but the whole idea that AAPL has been building towards is to have iTunes be its own Portal. Yes I said a portal.
What AAPL is looking to do is use the millions and millions of iTunes customers around the world to build their own one stop shop for everything the customer may need. Just as GOOG has come out with Google payments, AAPL is going to use its iTunes leverage to offer not only content, but also a financial clearing house. They will compete head to head with both Google & PayPal, and they will put a dent into their business models.
The brass over at AAPL realizes that most people view PayPal as a rip-off, but still use it because of the convenience and lack of other safe options. The whole idea behind the ATM patent for AAPL is not to open a bank like a Chase or Citi, it is to utilize all of the retail space that they have around the world already. They will install the ATM in all of their Apple Stores so that their customers will be able to use a debit card to access their money from iTunes for free. They are going to lower fees across the board, which will put a huge dent into PayPal.
Most of the AAPL customers use their products because they feel they are safer than any of the other alternatives, as well as being very user friendly. Apple will exploit all of this to create new waves of revenue sources that can continue to produce the growth that they need to basically control your life.
They are aiming to control every aspect of our lives with their hardware, software and multiple layers of content. They will in the future control our homes, not just our living rooms. I would look for AAPL to solidify this push with a bid for NFLX some time in the near future. They could bundle Netflix in with the AAPL TV and iTunes to control a lot more of our content rich lives.
No one is even giving them credit for the Apple TV that is out right now that only costs $99.00. I recently purchased one because my kids were nagging me about it, and I can see where they are going with all of this. Wouldn't it be nice to get your cable, internet, VOIP, Phones, etc. all from one source. On top of that be able to pay for all of it out of your iTunes account automatically every month. This is where AAPL is going with all of this, and they will succeed.
As for the AAPL TV's that everyone is hoping that they start to build to compete with LG, Samsung, Sony,etc. They will become a reality sometime soon. They will come complete as internet ready Smart TV's with the AAPL Tv set top box software already installed, so you will not have to purchase the $99.00 device separately. They will have a full line of them as well, ranging from small to extra large displays. I wouldn't be surprised if they go searching for one of the TV manufacturers to take over, so they are already equipped to start making the TV immediately after the takeover. We all know they have the cash to do so.
Looking at the 5 year chart shows that AAPL is just consolidating after running close to 100% within a 14 month period. That's right, this behemoth almost doubled in a years time, while the markets were still puttering along.
On the way back up there will be more buying power to push back to the highs. We will have the shorts covering in disbelief (boy there are a lot of them now), the scared investors that sold into the panic and have been thinking everyday if they made a mistake. Add to that the momentum players that are itching to get back into this one if it starts to trade like it has in the past few years.
I believe that giving what I feel AAPL's mission is, that this stock is on its way to the 850-920 area in the next 18-24 months, dragging the markets along for the ride. They should be able to grow revenues by by at least 18-20% over the next 2 years, which is very good for a company of this size.
The only question that all of the naysayer's need to ask themselves is, What if I'm wrong? To me it is not worth the risk, you will miss out on the next big leg up. Just take a look at NFLX since September. What a shame if you missed it.
Disclosure: I am long AAPL.