There will be a changing of the guard of the giants in my portfolio, with Microsoft Corp. (Nasdaq: MSFT) making way for Apple Inc. (Nasdaq: AAPL). If the tech stocks market makes the significant climb that I predict will happen in the second half of the year, the return on Apple is likely to be much higher than that on Microsoft.
Apple has also shown great potential in the field of mobile handsets, which it is set to enter this summer with its touch-screen mobile phone, the iPhone. Apple will probably have a surprise in store in the first quarter with higher-than-expected gross profit margins on its iPod player business, thanks to the end-of-season prices on the NAND component market, or in other words, a "vendor only market." It is also likely to continue to deliver higher-than-average growth in its laptop business and it is set to launch its new set-top box for playing downloaded music and videos on home stereos or televisions, Apple TV, later this month.
AAPL Vs. MSFT 1-yr chart
Published originally by Globes [online], Israel business news - www.globes.co.il
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.