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Apple Inc. (AAPL): What Could Kick Start A Rally

stock rallyAttached drives aren’t as useful as they once were. Google Inc. (NASDAQ:GOOG) and Dropbox are part of the problem. Both companies offer online storage that invisibly syncs with a computer’s hard drive so that backup is almost an afterthought.

Apple Inc. (NASDAQ:AAPL) should be offering an alternative for Mac users, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova. By committing entirely to the disk-based backup app Time Machine, the iEmpire is foregoing a chance to hook customers on iCloud and in the process holding back what could be a powerful catalyst for an Apple stock rally.

There’s little cost to Apple to not acting right now; iCloud is too closely associated with iTunes content while Dropbox and Google Drive both perform well. The Mac maker would have to offer something materially different or better in iCloud in order to get users to switch. But if it did, Tim says, hundreds of millions in annual subscription revenue could be up for grabs.


Do you agree? Watch the video below to get Tim’s full take, and then let us know whether you would buy, sell, or short Apple stock at current prices.

The next big iThing
Apple has a history of cranking out revolutionary products… and then creatively destroying them with something better. Read about the future of Apple in the free report, “Apple Will Destroy Its Greatest Product.” Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Related ETF: Technology Select Sector SPDR (NYSEARCA:XLK)

Top 10 Holdings (62.38% of Total Assets) as of 4/22/13
Company Symbol % Assets
Apple Inc. AAPL 14.02
International Business Machines IBM 7.54
Microsoft Corporation MSFT 7.28
Google Inc. GOOG 7.15
AT&T Inc. T 6.80
Verizon Communications Inc. Com VZ 4.77
Oracle Corporation ORCL 4.05
QUALCOMM Incorporated QCOM 3.90
Cisco Systems, Inc. CSCO 3.76
Intel Corporation INTC 3.11


NYSE:XLK


 

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  1. kevin
    May 16th, 2013 at 12:29 | #1

    Why doesn’t Apple’s Time Machine compete with Dropbox and Drive?

    It’s the nature of the task.

    Dropbox and Drive are for syncing and sharing select folders and files, and they provide on the order of 10GB of disk space.

    Time Machine is for real backups… of your *whole* disk. It’s limited to the size of your external drive – on the order of 1000GB. It’s useful as a backup because it has all your files and requires basically zero setup. Even if your Mac is blown up, you can use your Time Machine backup and restore to exactly where you were.

    It follows, then, that iCloud is limited to iPhone and iPad, where a very small portion (of the already small disk) is actually personal information that has to be backed up. In fact, you dont have to back up the OS, the installed Apps, Music, etc. This essentially means pictures and application state data, which can almost certainly be stored on less than 10GB of disk.

    So if apple really wants to compete with Dropbox and Drive, I think the obvious move is not to morph Time Machine, but to open up iCloud a bit.

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