Five ways to invest in Apple without buying AAPL

May 28, 2008 | Comment | Tags: apple, iphone, ipod

Are you looking for a way to cash in on the financial success of our favorite fruit company, but without the high price tag of buying AAPL stock? Here are some other ideas to consider as Apple related investments without breaking the bank.

I’m not going to pimp any specific companies here, but if you have any suggestions please feel free to comment below or Twitter it to our stream.

1. Accessory makers - as we all know, the market for third party Apple accessories such as cases, skins, docks, cables, etc is far larger than that of any other technology group. Consider investing in companies that make the sort of items that allow consumers to personalize their devices - it is, as they say, a growth market!
2. Component makers - so how many different parts go into a Mac, iPod or iPhone? Dozens, that’s how many! When these products sell well (as they tend to do), demand for their components increases also, meaning more profit (hopefully) for the companies that make them. Everything from hard plastic shells to wireless to bluetooth to 3g to video chipsets are made by dozens of companies and are ripe for the investing.
3. Shipping companies - all of that stock has to be delivered by someone, right? Consider investing in the companies that bring your new toys to you, Apple retail and distribution centers. A warning though, as the rising cost of fuel might dampen the profits of many delivery companies.
4. Partners - companies that partner with Apple are bound to grow also. Some ideas for choosing these partners might include looking for vendors that receive ample exposure by a system default (such as a search engine or travel company in a widget). The reach of Apple extends a mighty long way these days, and any company worth it’s salt is going to try to get into the Apple game.
5. Software companies - the Mac community has a massive development movement behind it. Hundreds of companies, with profits of billions of dollars create software for the Mac, and usually at a hefty profit after recouping their testing and development costs.
   Another consideration is the upcoming boom for iPhone applications. Don’t think for a second that the major players are going to miss out on putting their programs on 10 million iphones in 2008!

6. Bonus tip - Consider investing in the technology sector, period. As Apple continues to innovate, they push other companies to do so also. Considering that Apples market share in the workstation and cellular industries is miniscule compared to their competitors, yet they still make a substantial amount of money, it’s a no-brainer to trust that their rivals are going to push back with products that, while they are inherently inferior, are money makers for their own buyers.

7. EXTRA super double jackpot bonus tip - Another path is to invest in the companies that invest in the companies that are Mac related. These venture capital firms will supply upstart companies with funds to get started in exchange for part of the company or its profits.

Keep in mind when investing in these related companies that in many cases their livelihoods are tied directly to that of Apple. They live and die by what comes next from Steve and company, and in most cases they remain fiercely dedicated to the platform itself, which is good news for long term investments.

Also important to remember that when you are ready to invest in these companies that you should think about what you, as a consumer, want. If you are dedicated user of a specific keyboard manufacturer that caters to Mac users, then you might want to spend some time researching and investing in that company. Conversely, if you use a product that increasingly frustrates you or fails to live up to expectations, dump it!

Again - if you have any comments, thoughts or hot stock tips please feel free to comment or Twitter us!