10 Stocks Poised to Rise in Apple's Wake
Apple, the maker of the iPad tablet, MacBook laptops and iPhone smartphone, late Tuesday reported a 94% jump in earnings to $11.6 billion and a 59% increase in revenue to $39 billion for the first three months of the year, well above analysts' estimates.
Leading Apple's bandwagon in the period was the sale of 35 million iPhones, accounting for about half of its revenue in the quarter.
Apple's share price closed at $610 Wednesday, up 9% on the day, which has to have investors thinking about what else will ride along on its coattails.
Obviously, its suppliers, various chip and interface components makers, such as Broadcom(BRCM) and Qualcomm(QCOM) , will benefit, along with a handful of others on the prospect that they will see a flood of new orders.
Since Apple saw most of its iPhone growth in China in the quarter, that nation's service providers should eventually get a boost as more people will log on with their new iPhones and ring up big charges for sending email, surfing the Internet and making voice calls.
And Apple's big gains give hopes to its competitors as well, as its success shows that there is still a huge international market for smartphones. So lower-priced providers using the Android communications platform should be able to find market share by following in Apple's footsteps.
Google, better known for its Internet search engine, has cited Motorola Mobility's library of 17,000 patents for smartphones as the impetus for its acquisition and that shows its intent on being a mobile-communications player.
Here are 10 stocks that should benefit from Apple's success in selling iPhones, arranged in descending order of analysts' "buy" ratings:
10. China Mobile (CHL)
Company profile: China Mobile, with a market value of $220 billion, is one of three national telecommunications firms in China and controls almost 70% of the country's wireless market, boasting the world's largest subscriber base, at more than 630 million.
Dividend Yield: 3.71%
Investor takeaway: Its shares are up 12.6% this year and have a three-year, average annual return of 9.6%. Analysts give its shares one "buy hold" rating, three "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P.
Morningstar analyst Dan Su says China Mobile is "handicapped by the mandate to use the less-mature TD technology in 3G," which leaves out most Apple products for now.