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Road now clear for Apple for years ahead
3:06p ET August 27, 2012 (MarketWatch)

SAN FRANCISCO (MarketWatch) -- Apple Inc.'s victory over Samsung in court is an even bigger deal than it looks on the surface. Obviously it's a huge financial windfall, but still more than that to the Apple investor.

The Cupertino, Calif.-based company's rising share of the consumer-technology sector is about to accelerate, which means Apple (AAPL) may about to take a truly dominant revenue position over its closest competitors.

It's a position Apple can already defend in the marketplace -- and in U.S. courts -- with its massive cash reserve.

The size of the verdict will lower the operating margins Samsung is earning on its smartphone operations, and therefore make it a tougher investment to justify given the breadth of the consumer products offered by the electronics giant.

What's more, Samsung's loss is also Google's, as the former was one of the largest hardware partners for the Android software. Android is the only legitimate rival right now to Apple in the handheld market.

The decision won't damage Google's own financial numbers, of course, since Android is a channel for Google to sell search advertising, a marketing expense.

Yet Google is the only company putting serious pressure on Apple's software development in the most lucrative and fastest-growing part of the global consumer-tech market, in terms of popular features.

The game is over for Microsoft Corp. (MSFT) in the handheld sector. Chief Executive Steve Ballmer made an 11th-hour bet on Nokia Corp. (NOK) as a hardware partner and lost. Forget it. As long as the form factor is a handset or tablet, Microsoft is going to be to Apple in mobile what Apple once was to Microsoft in PCs: a niche irritant.

The industry has swung back to its roots, courtesy of a multidecade design effort by the late Steve Jobs and his top executives. Apple may own the Nasdaq Composite Index (COMP) for the next five years.

Make no mistake, the technology industry is no longer a young one. It's still the one with the best profit margins and often the most growth. Along with financial services, tech suffers highly volatile swings as growth accelerates or slows, which is why tech investing is riskier.

But the history of tech is a list of innovations that were absorbed into the sector's mainstream and fought over by a group of companies that focused on two or three, at most.

Database software is International Business Machines Corp. (IBM) , Microsoft and Oracle Corp. (ORCL) Networking is Cisco Systems Inc. (CSCO) and Juniper Networks Inc. (JNPR) PCs are Dell Inc. (DELL) and Hewlett-Packard Co. (HPQ) Phone and Internet service is AT&T Inc. (T) , Verizon Communications Inc. (VZ) and the cable giants. Business and consumer software is still Microsoft.

The consumer-tech industry is now ripe for consolidation, and Apple is going to start gobbling up an even greater share of the revenue pie.

I don't own stock in any individual companies, long or short, but when friends or family ask me what to do with their money right now, I tell them to buy some Apple stock on any reasonable dip.

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Poke said:

Yeah kind of misleading Microsoft not going any where and still has more market share on allot of things. Android leading in mobile market up to 60% which out of that 60% 40% of that is Samsung devices. Just another reason why Apple went after them in court they got 1 Billion from them but really wont hurt them Apple just mad that their loosing in the mobile market. Now with Microsoft getting serious about the Mobile Market Google already came out said their more worried about Microsoft due to all the Top Hardware Manufactures that make their phones will be making Win 8 Devices as well. So basically more Windows 8 Phones to hit the market more to choose from so forth this fall and next year as well so Apple knows this just like Android does.

Apple doing well in the touch market with their Ipad but now with Windows 8 tablets and slates coming out this fall and next year Apple nows that things are going to get tuff and there will be more Windows 8 devices out there to choose from just like there is on the phone side of things. So towards the end of this year and by end of next year things are really going to shake up. Most of my user have stop drinking the Apple Juice like and Apple always done a good job with their propaganda machine but people are realizing it's still a Mac and always will be..

So on the Mobile side of things Android,Microsoft will be in the top 2 of the market with Apple in 3rd Blackberry will go under or get bought out like WebOS and the door will be closed on them. On touch side Apple in the lead for awhile until more Windows 8 devices start hitting the market like the Surface,HP,Dell,Samsung,Nokia,Asus all the manufactures start rolling out things that will effect the market and I see Ipad staying in the lead but could fall some or just barley keep the lead.Android as not done well here with touch so forth their bread winner is all in their mobile devices.. Overall Microsoft will be making some big jumps over the next year or so it interestingting to see what they have in their hat.. Just my 2 cents..

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