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How One Company is Changing the Cellphone Industry — Again
Get ready, because Apple, Inc. — the world’s most innovative tech company — is working on a brand-new way to revolutionize the tech industry.
And if they’re successful, it has the power to completely change the face of wireless Internet as we know it.
The goal is simple: To provide every Apple device with seamless, lightning-fast Internet, without having to rely on the big telecom companies like Verizon or AT&T to provide the service.
But how is this possible?
Well, it’s all thanks to a special project that one tech expert has dubbed “Apple-Fi” — and if it plays out the way we expect, roughly 45% of all cellphones in the U.S. will be affected.
[Related: Apple’s “one-two” punch to America’s biggest phone companies.]
First, it’s worth noting that Apple recently upped its research and development budget to a full $16 billion — up 14% from the previous year.
And according to some research, a large portion of that $16 billion will be dedicated to a new project, designed to deliver ultra-fast Internet straight to Apple devices via a constellation of satellites in low earth orbit.
As an article in Popular Mechanics put it:
“The idea is to beam internet service directly to devices like the iPhone, iPad, and Mac to provide access to the web all without traditional wireless networks and cell towers. That could be absolutely huge for the Cupertino, California-based company, if true. It could, in theory, make it possible for the company to bypass ties with internet service providers, doling out its own service along with its devices.”
That last sentence is the kicker — because it could put a massive dent into the profits of major telecom companies like Verizon and AT&T.
Need more proof? Think about this…
iPhones currently make up about 45% of the entire U.S. cellphone market. And with so many of those customers being brand loyal to Apple, that means they’ve already got a massive leg-up when it comes to hardware.
Not only that, but the current Internet service industry is worth a whopping $251 BILLION.
And right now, Apple is on the outside looking in.
It’s no wonder Apple CEO Tim Cook has indicated that this project is a priority for the company.
So the real question is, why wouldn’t Apple want a piece of that pie?
[See Also: 4 Companies to Watch In the Next Cellphone Revolution]
Of course, Apple is far from the only company that stands to make huge profits as it comes online… There are several other companies likely involved in this story that could see massive gains thanks to this “Apple-Fi” initiative.
Since this project requires a large network of satellites, the companies developing and launching those satellites stand to profit from Apple’s potential investment as well.
And a newly released presentation gives important details on which companies could profit the most.
Editor’s Note: I can tell you that one company is already a major player in the satellite arena. In fact, five of the engines in the famous Saturn V rocket — which powered the Apollo 11 mission — were built by this company.
So they’re clearly one to watch — or even to consider buying.
But there are plenty of others.
I’ve laid out 3 more to watch as this story heats up. Click here to discover more about them now.