Tim Cook: Smartphone Market Will Be 1 Billion Units in 2015

Feb 27, 2012
J. Webster
Comments Off on Tim Cook: Smartphone Market Will Be 1 Billion Units in 2015

OK, so here’s why Apple is pretty much unstoppable and the stock is only going to go higher and higher in the years to come. Yes, if you hold on to Apple’s stock (AAPL) you will see $1,000 per share and probably collect a dividend along the way too. Why?

Well, just take a look at the potential market for the iPhone, which Tim Cook spelled out recently at a Goldman Sachs investor conference. Just think about the various types of iPhones that will be available in the coming years. You’ll have an array of phones available for all types of buyers, from the high end to the lower end – from fast to thin to more memory to less to better cameras to not so good to Siri to no Siri, and so on.

I’m sure Apple will capture all these markets. And think about how long Apple has been in the cell phone or smartphone business. Not long. They are only going to get better and better at this. And yes, we’re only talking about cell phones, Apple does sell computers you know, and those silly little iPads and iPods and perhaps even TVs soon enough. Conclusion: Buy Apple’s stock and hold for the long term.

Timothy D. Cook, the Apple chief executive, told a Goldman Sachs investment conference this month that Apple would not rest on its laurels after its record fourth quarter, in which it sold 37 million iPhones — 17 million more than it had ever sold in a quarter.

Tongue in cheek, Mr. Cook called the 37 million “pretty good,” drawing laughs, but then put it in stark perspective: “As I see it, that 37 million for last quarter represented 24 percent of the smartphone market. So three out of four people bought something else. And it represented less than 9 percent of the handset market, so nine out of 10 people are buying something else.

“The smartphone market last year was a half billion units,” he continued. “In 2015, it is projected to be a billion units. When you take it in the context of these numbers, the truth is, this is a jaw-dropping industry. It has enormous opportunities to it. Up against those, the numbers don’t seem so large anymore.” (NY Times)

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