SEEDS OF APPLE'S NEW GROWTH IN MOBILE PAYMENTS, 800 MILLION ITUNE ACCOUNTS $AAPL $FB $TWTR

During Apple’s (AAPL) earnings conference call on Wednesday, it was revealed that Apple now has about 800 million iTunes accounts.  CEO Tim Cook described it as “staggering.”   This is an impressive achievement considering that at the end of the June 2013 quarter iTunes had 575 million accounts.

Cook stated that there have been 70 billion app downloads from iTunes.  During the last quarter alone, there were about 5 billion downloads that resulted in total purchases of $5.2 billion.

The 800 million iTune accounts are the next gold mine for Apple.  Cook recognizes the potential and during the previous quarter’s conference call he indicated interest in mobile payments.  During this quarter’s conference call, Apple’s CEO indicated that he believes that Apple can monetize iTunes better than it has.  More important is that he indicated interest in monetizing iTunes in new areas.

Mobile payments is the next killer app for Apple.  Apple already has credit card information for most of iTune accounts, its iPhone 5s has a fingerprint sensor that should lead to development of better security for payments, and Apple users tend to have higher disposable incomes than the population in general.

Considering the low valuation granted Apple shares based on traditional fundamental criteria, such as price/earnings, price/sales, and price/book value, it appears that the potential revenues and profits that can be generated from successful monetization of 800 million users is not in the stock price…Read more at Forbes

This post was just published on ZYX Buy Change Alert.

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