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5 iPhone Stocks That Aren't Apple


Cash in on the latest iCraze with stocks of companies that make parts for it. There are several, and at least one looks like a buy right now.


What is the best way to play Apple and the success of the iPhone 5? I'd suggest that maybe it's not by buying shares of Apple itself.

By buying shares of suppliers to Apple (NASDAQ:AAPL)-what I'd call the Apple sphere-of-influence stocks-that are also big suppliers to Apple's fierce competitors, such as Samsung (PINK:SSNLF), investors can get the benefit of any return of market enthusiasm for Apple on the company's October 25 earnings report and profit from growth in the smartphone and tablet sectors, no matter which company comes out momentarily ahead.

In this column, I'll give you five suggestions for stocks where the Apple and Samsung spheres of influence overlap. But let me start with the phenomenon that is Apple and the idea of a sphere of influence in the stock market.

More Than a Single Stock

What is Apple? Of course, it's an individual stock, and a handsomely profitable one to investors who have held it for the past 12 months. Despite the shares' recent correction from the 2012 high of $702 to the October 10 close of $641, Apple's stock is still up 66% in the past year.

But at a market capitalization of $600 billion, Apple's effect on the market is greater than that of any other single stock. It's not a market sector, but the stock has the clout of one.

This single stock carries a weighting of 24% in the Standard & Poor's technology index. That's more than three times the weighting of Microsoft (NASDAQ:MSFT) or IBM (NYSE:IBM).

It's no coincidence that Apple peaked at $702 on September 18, and the technology-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) peaked at 3,184 on September 14 and essentially held at that level until September 21. Since then, Apple shares are down 8.7% through the close on October 10, and the Nasdaq is down 4.1%.

(Five technology stocks make up about half of the Nasdaq-100 index (INDEXNASDAQ:NDX)-Apple, Google (NASDAQ:GOOG), Microsoft, Intel (NASDAQ:INTC), and Oracle (NASDAQ:ORCL).)

But Apple's influence on stock prices extends even beyond the effect you'd expect from the stock with the market's biggest market capitalization. Apple is the center of a web of suppliers, assemblers, and retailers.

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No positions in stocks mentioned.
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