What Type Of Investment Is Apple To Your Portfolio?

Even when there seems nothing left to disrupt the tech world, Apple (AAPL) still manages to come up with something new that leaves everyone flabbergasted. The world AAPL’s largest company this week held its annual keynote iPhone event in the process launching a number of products that seek to continue disrupting the technology industry for the foreseeable future.

After a period of sustained critique following the decline in iPhone sales, Apple appeared to have been finally cornered and put in a position that even the mightiest of the tech giants indicated a sense of compromise and potentially surrender. It looked as though Apple was no longer a popular stock amongst most investment portfolios from those of Gurus and experts to those of retail and individual investors like you and me.

However, just as Apple has proven time and again, innovation occurs in cycles and the company’s latest iPhones dubbed the iPhone 7 and the iPhone 7 plus could yet prove its dominance in the technology industry.

So exactly what type of investment is Apple to your portfolio? In several investing platforms, an investment is defined as a form of commitment of funds towards an asset with the goal of increasing your capital. On the other hand, a portfolio is made up of several types of investments, which could be subdivided into stocks, commodities, and currencies, among other instruments.

Based on Apple’s business model, it could yet play out to be a mini portfolio within a portfolio. Apple’s keynote event demonstrated just how different a stock it can be to a portfolio. The company’s ability to reinvent itself is one of its main strengths, but there is more.

Apple isn’t just looking to disrupt the smart devices market—analysts believe that there is more to the company’s current reinvention phase than meets the eye. Apple is known to value product margins as this is partly what has kept it ahead of the pack for several years.

However, recent trends indicate that the company could be ditching its traditional pricing policy to embrace a more subtle structure that would look compelling to customers from the emerging markets. A good example is the introduction of the iPhone SE a couple of years ago, which as revealed in today’s event continues to be pretty much part of Apple’s long-term plans.

In addition, even after ditching the 16GB memory starting point for its new iPhones, Apple kept the starting prices unchanged from last year, which means that the level up in memory will not affect customers’ budgets.

So, what exactly is Apple’s grand plan? From hindsight, it looks as though Apple is trying to adopt the path taken by Facebook (FB) by building a strong user base, which it can then use to establish multiple streams of income.

The company has launched a number of interesting products over the last few years, which some analysts have questioned with regard to the impact on revenues. It has also made some strategic acquisitions which could be used to augment services offered across its devices.

The world’s most valuable company acquired Beats Music and brought Dr. Dre on board to head the unit, and has since launched Apple Music, a service that could be very crucial in boosting user base. Apple today launched Air Pads and Lightning as it seeks to render the traditional jack pin for earphones an obsolete tech. Most of the company’s products are also designed in such a way that once you purchase one device you might be forced to purchase a couple more in order to enjoy the best experience of its array of premium devices.

The company has also ventured into the entertainment industry with Apple TV, as well as, the wearable devices market with Apple Watch. On the other hand, Apple Pay launched last year represents it in the financial services market whereas there have been talks of an Apple tech-smart car on the horizon.

In short, Apple is investing in several industries, which means that for any investor looking to invest in one of the most diversified stocks in the market, Apple would top the list. As such, Apple is slowly trying to maintain its cutting-edge innovation across the several industries it seeks to invest in.

While there will be hits and misses in its adventurous pursuit of market domination, Apple looks set to influence every investor’s portfolio choice, one way or another.

Conclusion

In summary, it looks as if in the future, investing in Apple alone would be as good as investing in a handful of stocks wrapped into one. Here, we are talking of a unit focused on streaming services to challenge the likes of Netflix (NFLX​) and Spotify.

Another unit could be focused on Smart cars to disrupt the driverless car market while the devices segment will continue to challenge for leadership in the mainstream tech market.