Apple Inc

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7:59:58 PM EDT: $164.64 -0.36 (-0.22%)
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The Secret is Out: Apple Enters a New $80 Billion Market



Fundamentals



PREFACE
Apple's innovation is bringing one of the most impressive lines of new products we have ever seen from a company of any size. But one area we didn't know was coming, now appears to be a top priority.


VIRTUAL REALITY
On May 28th 2015, Apple acquired Metaio, an augmented reality startup that launched as an offshoot of a project at Volkswagen (TechCrunch). When asked what Apple was doing, the company gave the standard answer:

"Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans"

Source: TechCrunch.

Then, in November we got news that Apple acquired Faceshift; the company that created motion capture technology used in the latest Star Wars film. This company's technology creates animated avatars and other figures that capture a person's facial expressions in real time.

But, the news we just learned tops all of the small acquisitions and rumors. Apple has hired Doug Bowman, Ph.D. -- a professor at Virginia Tech considered to be one of the world's top virtual reality researchers (Forbes). Here's a quick snippet on Bowman's background:

Bowman has won a slew of awards related to virtual reality. Over the years he has been awarded millions of dollars for funded research related to both virtual reality and augmented reality.

Source: Forbes.

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NOW WHAT
When done properly, VR has been called the technology whose consumer base looks increasingly like of all of humanity. Facebook, Google, Microsoft and several other tech giants have openly discussed the opportunity in VR, but Apple has been rather secretive about it.

We do know that over the last several months, patents related to virtual reality have shown up with Apple and its employees as inventors of technologies. Further, the company now has job openings posted for VR and augmented reality (AR) positions.

Goldman Sachs estimates the virtual reality segment will be an $80 billion market within a decade and that doesn't include the 'augmented reality' segment. Statista shows forecasts of over 150 million VR users within just three years, up 3,000% from 2015.



Those users are seen to generate nearly $5 billion by 2018.

WHATS REALLY GOING ON
While Wall Street would have you dig a grave for Apple, just one layer beneath the headlines and we'll see the real secret: The company has increased its expenditures in research and development (R&D) by 90% in the last two-years. Here's the breathtaking trend from CML Pro:



Source: CML Pro


The innovation born from this R&D is staggering; ranging from the seismically disruptive Apple TV -- which very well may place Apple as the largest cable bundler in the world -- to Apple Pay, a business line so large it could be a stand-alone entity.

The 'failed' Apple Watch will generate revenue in 2016 larger than double Facebook's entire profit in 2015 and the 'dead' Mac generated revenue equal to 35% of Google's total worldwide sales.

And we haven't even touched on Apple's other innovation and a radical shift in its business that is due to increase the stock by 60%. CML Pro published it first, Goldman Sachs followed suit. It's just the rest of Wall Street that hasn't caught on that Apple is innovating so quickly and so successfully that it is leaving a bumbling Wall Street in the Stone Age.

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THE WORLD
CML Pro also revealed the research that shows that 57% of China's smartphone buyers plan to buy their next (or first) smartphone within a year and Apple is by far the preferred brand. All those calls for China's slowdown and Apple's collapse are simply wrong. A headline is not a story, and a headline is certainly not an investment thesis.

We also learned that Tim Cook's secret handshake with India's Prime Minister pre-empted a sudden move by India to single out "cutting-edge technology" as a segment that can side-step the country's regulations on foreign manufacturers; how convenient.

India's share of the smartphone market will increase a staggering 26% next year with forecasts calling for 140 million smartphones to be sold in India in 2016, alone. Enter Apple stage left, with the number one technology brand in the world with the best-selling technology hardware ever and of course this:



What a coincidence, Apple is coming out with smaller less expensive iPhone just as it shakes hands with India's Prime Minister. Estimates for 2016 put this new, massively upgraded small iPhone at 20 million - 30 million units and that does not include India.

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WHY THIS MATTERS
If any of the information we just covered feels like a surprise, in many ways it is. The mainstream media doesn't have the vocabulary to understand breaking technology and the top analysts that represent the wealthiest 1% of Americans have no interest in sharing the data they are keenly aware of.

In fact, it's the information asymmetry they created that has generated immense wealth to the benefit of the top 1% at the expense of the many.

The radical innovation Apple is bringing has created a juggernaut the world has never seen before. Here's an impossible chart of the largest companies in technology, ranked by their revenue per employee in the trailing-twelve-months.



Source: CML Pro


What's astonishing is that both Apple and Microsft have over 110,000 employees, while Netflix, Facebook and Google have 2000, 12000, and 60000 employees, respectively.

In fact, while AAPL and MSFT have similar numbers of employees, AAPL generates $2.1 million per employee while MSFT generates about $800,000. That’s beyond astounding and gone into incredulous.

These are the realities surrounding Apple:
Apple's Seismic Shift To Recurring Revenue Could Double the Stock
Research is Out: Apple Will Crush it in China in 2016
Apple Pay Has Enormous Upside
Apple TV is Seismically Disruptive
The Secret is Out: Apple Car is Coming
Apple's Secret: The Hidden Handshake with India Is Enormous

We must be in the know about these critical trends -- the top 1% are.

CONCLUSION
CML Pro has research dossiers that cover each trend above -- in fact, the list above are the actual titles of the pieces. To fully understand Apple we must also know the top company in artificial intelligence, Internet of Things, cyber security, disruptive technology, biotech, apparel and more. Each of these are on the top picks list for CML Pro.

This is just a snippet of the fantastic reports CML Pro members get along with all the visual tools, the precious few top picks for 2016 that cover all of the rule breaking segments of our future, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.

Thanks for reading, friends.