Buy the iPhone 14… and buy Apple stock

By Michael Robinson, on Tuesday, October 4, 2022

If James Kim had had the iPhone 14, perhaps his story wouldn’t have ended in tragedy.

James, a TV personality and tech analyst, got stranded in the snow in Oregon in 2006. He had a cell phone, but since he couldn’t get a signal, he couldn’t call for help.

In the end, he literally froze to death.

But with Apple Inc. (AAPL)’s latest iPhone, things could have been different.

Today, I’ll tell you why — and explain why I’m recommending this legendary Silicon Valley company as a long-term investment.

Here Comes Network Earth

The new iPhone 14 includes something new and powerful: satellite service.

That means you can call for help no matter where you find yourself. With so many pockets of the U.S. still lacking cell coverage, this is a big deal.

More broadly, I believe this new device will greatly enhance Apple’s role in Network Earth.

That’s the term I use to describe our hyper-connected world — a world where billions of devices (from security systems to smart homes, and from onboard-car communications to cell phones) are all talking at the same time.

Apple’s new device also boosts its value proposition in the smartphone market, which is on pace to be worth $520 billion by the end of the decade.

These points help explain why I’m recommending Apple as a strong long-term investment. But before I get to the details, let me finish my story about James Kim…

When No Signal Means No Life

When James Kim and his family got stuck in the snow in a remote region of Oregon, he couldn’t get a cell signal. So he set off on foot to find help.

He covered several miles, but it was futile…

A rescue team — a crew that included 80 volunteers, the Oregon National Guard, and several helicopters — eventually found his lifeless body in a creek.

Thankfully, the authorities rescued his wife and two young daughters, who’d hunkered down in the family car to escape the frigid temperatures.

If Only He’d Had a Dual-Band Phone

The story of James Kim riveted the nation. The websites of CNN and MSNBC reported that, in the hours after his death, his story got more views than news about the war in Iraq.

But here’s the thing:

If Kim had had a dual-band phone like the one we’re discussing today, he could have connected to a satellite and sent a distress signal — and lived to tell the tale.

The fact is, this technology could save your life. It could save my life, too…

You see, I’m a diehard skier. I love driving up to Heavenly Valley on Lake Tahoe. And while the mountain is gorgeous, it’s one big dead-zone for cell phones. My wife worries that if I get injured in the woods, I won’t be able to call for help.

That’s where Apple’s new device comes into the picture…

This Market Is Set to Double

Dubbed “Emergency SOS,” the iPhone 14’s satellite link will allow messaging from remote locations — the kind of locations not covered by traditional cellular networks.

Being able to connect to satellites from the middle of nowhere brings Apple’s new 5G-enabled phone to a new level. It also brings Apple closer to enabling Network Earth.

Why do I use the term Network Earth? Because we’re at the dawn of an era where nearly every electronic product on Earth will be linked to a system of interrelated networks.

That’s why the Satellite Communications sector offers so much potential for tech investors. In fact, Verified Market Research reports that the global satcom market will double in size from the base year of 2020 to be worth $131.7 billion by 2028.

And this, my friends, is the wave the iPhone 14 is riding…

Launching this Fall

Apple says its new service will launch in November, and it’ll be free for the first two years.

To be fair, some have found the pending new service underwhelming. Makes sense. For now, it’s only designed for emergency texting, not the full smartphone experience. But Apple has a history of starting small and then improving its services along the way. That’s how it went from being almost bankrupt in the 1990s, to becoming the world’s most valuable tech firm, with a $2.5 trillion market cap.

For its new satcom service, Apple is partnering with Global Star Inc. (GSAT). This is a great deal for Global Star, a company with a $3 billion market cap and a stock that trades at around $2.

Apple will cover 95% of the capital expenditures made by the satcom firm to build up its network. The small cap provider now projects revenue of $185 million to $230 million for 2023. And for 2026, that figure rises to between $250 million and $310 million.

A Good Time to Buy Apple

As much as I like its deal with Apple, I can’t recommend Global Star (GSAT) for my Trend Trader Daily readers.

Sure, I like its cheap price. But unfortunately, the firm hasn’t been able to deliver consistent earnings. For regular investors, I believe it’s too risky.

Instead, I recommend buying Apple.

First of all, Apple continues to innovate with big, bold moves like adding satellite services. But furthermore, over the past three years, its per-share earnings growth has averaged 34%. That means its earnings are nearly doubling about every two years.

This growth is one of the main reasons I’m recommending Apple as a great long-term play.

Bottom line: whenever the market sells off like it’s been doing recently, consider adding to your holdings of Apple.


If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Apple Iphone

Share This:
comments powered by Disqus