Smartphones are about to experience a massive overhaul … how they’ll become a one-stop-shop for many tech functions … how Matt McCall is investing
Last year, Americans made history …
For the first time ever, we spent more time on our mobile devices than we did watching television.
Zeroing in on our smartphone usage in particular, eMarketer reports that the average U.S. adult spent three hours and 10 minutes per day on smartphones.
Bottom line — we’re addicted.
And to be clear, while I write that rhetorically, it’s also the literal truth.
According to global tech company, Asurion, Americans check their phones 96 times a day. That’s once every 10 minutes.
And according to an American Addiction Centers Resource, 60% of U.S. college students consider themselves to have a cell phone addiction … 35% of people think of their cell phones when they wake up while only 10% of people think of their significant others … and 44% of Americans say they couldn’t go a day without their mobile devices.
Now, keep in mind, 81% of Americans own smartphones — even low-income earners. Pew Research reports that of those Americans earnings less than $30K a year, 71% still own a smartphone (versus a regular cellphone).
So, we have a product that four out of five Americans own … regardless of income … we spend multiple hours every day with it … and many of us are addicted to it.
Given all this, when this beloved product goes through a revolutionary, jaw-dropping upgrade that elevates the “I gotta have it!” factor even more, what do you think will happen to demand for the product?
The term “off to the races” comes to mind.
This means that wise investments aligned with this rocket-ship demand will enjoy similarly stratospheric gains in the years to come.
Today, we can begin making those investments before this new technology hits the masses.
***So, what’s this cutting-edge upgrade that everyone is going to want? And how do we invest?
For that answer, let’s turn to Matt McCall, editor of Investment Opportunities.
Matt is our resident thematic and tech expert (he also happens to be on an unbelievable win-streak with his recommendations … his latest Early Stage Investor winner comes in at a 521% gain … in just two months).
From Matt’s most recent issue of Investment Opportunities:
We are now at the beginning of the next big thing in smartphones that will impact communication through the rest of this decade. But it’s not what most people would expect.
The future of mobile technology and communication is … foldable smartphones.
I’m not talking foldable like the old flip phones that opened and closed on a hinge — with a screen on one side and buttons on another. I’m talking about an honest to goodness smartphone that can fold into pretty much whatever device you need.
Now, it’s important to understand the significance of this foldable feature …
“Foldable” by itself is fun, but it’s little more than a novelty. The real benefit of foldable is how it enables one singular product to do the work of many different, related products.
From Matt:
The idea that we may need only one device in the future is absolutely fascinating. No separate smartphone … watch … iPad … laptop … or possibly even television! It will all be one foldable device that you can wear on your wrist, place on a table or desk, or hang on a wall.
To better understand what this truly looks like, watch this short video from Matt (it’s less than two minutes).
The big money is already getting behind foldable
Back in January, Matt and his team were at the largest consumer electronics show in the world, seeing the technology for themselves.
Here’s a photo of Matt at the event, playing with the Royale FlexPai.
In his research while there, Matt found that some of the biggest tech companies are already in on the foldable game.
Back to Matt:
Lenovo has what it calls “the world’s first foldable PC,” the ThinkPad X1 Fold.
Huawei was one of the first to introduce a foldable phone, the Mate X.
Motorola dusted off the name Razr, an old flip phone, for its new foldable version.
Samsung has two foldable phones — the Galaxy Fold and the Galaxy Z Flip. And just this week, it was announced that the company is expected to launch two new foldable phones here in the second half of 2020 …
LG introduced an OLED (organic light-emitting diode) TV that rolls up like a movie screen as well as a model that bends just like the phones.
The biggest technology companies in the world are investing large sums into foldable devices. Alphabet has invested at least $1 billion. LG more than $8.5 billion. And Chinese company Huawei has invested over $15 billion.
Apple is in on it too. Matt’s guess is that the tech giant will join the foldable party next year with a characteristically huge launch announcement.
So, how do you invest in the foldable revolution?
Matt’s suggestion is to follow a picks-and-shovels approach.
If you’re less familiar with the term, it dates back to the 1850s gold rush.
Though thousands of would-be millionaires set out to find gold in California, very few hit it big. Meanwhile, a few smart folks took an easier route to riches — selling basic goods to the miners.
It turns out, the first millionaire of the California Gold Rush was an entrepreneur named Sam Brannan who sold pots, pans, and — you guessed it — picks and shovels to the gold speculators.
Back to Matt:
Picks and shovels are a brilliant business model and a brilliant investing strategy. When it comes to the future of foldable phones, this type of investing approach would have us avoid the huge phonemakers such as Samsung, Apple, and LG that will produce the phones.
Instead, we want to focus on the “guts” of these next-generation phones.
To see how profitable a picks-and-shovels approach can be, take Skyworks Solutions. It’s a semiconductor manufacturer that has been a major supplier to Apple for years.
As you can see below, since 2007, while the S&P has climbed 123%, Skyworks has soared 1,965% as it has piggybacked on the success of Apple’s products.
So, what are the various “guts” of a smartphone?
Broadly speaking, you have your display … the battery … the System on a Chip (SoC) … the memory/storage … modems … cameras … sensors … microphones … speakers … and the operating system.
As you can see, that’s a lot of picks and shovels. Matt is playing it through a basket of four stocks that span the various “guts” components referenced above. To get more details, click here.
However you decide to play it, now is the time to place your bets. That’s because the foldable revolution is less a smartphone upgrade, and more so an all-in-one breakthrough.
Here’s Matt with the final word:
Foldable phones are the future. Initiating positions in our four recommended stocks today will put you ahead of the curve. Getting in early is one of the best ways to generate true wealth.
Have a good evening,
Jeff Remsburg
"Smartphone" - Google News
July 09, 2020 at 07:30AM
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The Coming Smartphone Revolution - InvestorPlace
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