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Could Apple’s 5G Deal Be a Game-Changer for AAPL Stock?

Will Apple’s VR Gear Be a Problem for AAPL Stock?
Since $Apple(AAPL.US)$ stock has run higher this year so far, any failure on Apple’s part could prompt a share-price pullback. Concern about Apple’s upcoming mixed-reality headset, which is expected to be introduced sometime this year, makes sense.
It won’t be a simple task for Apple to make VR goggles look cool. Other tech titans have attempted this and failed to make an appreciable dent in the VR hardware market. Will Apple succeed where others didn’t?
I propose it will be challenging, but not impossible. Remember, Apple created and then dominated new markets with the Macintosh computer, the iPod, the Apple Watch and of course, the iPhone.
Besides, Apple doesn’t need to succeed in this niche market. It’s not make-or-break for Apple. The company can always fall back on its other products, which have exhibited year-on-year growth.
Bigger Than Tesla, SpaceX and PayPal COMBINED
$Tesla(TSLA.US)$ , SpaceX and $PayPal(PYPL.US)$ … these are three of Elon Musk’s greatest innovations.
But what most people don’t realize is, Musk recently flipped the switch on a new innovation… one that is on track to be bigger than SpaceX, PayPal and Tesla combined.
In fact, the CEO of $Alphabet-A(GOOGL.US)$ went as far as saying that the core behind this innovation is; “More profound than fire, electricity, or the internet.”
Apple Strikes a 5G Hardware Deal
Only time will tell whether Apple’s venture into VR hardware will be a hit or a flop. One foray that will almost certainly be a winner, however, is Apple’s collaboration with chip maker $Broadcom(AVGO.US)$
No exact time frame or dollar figure was revealed, as this is a “new multiyear, multibillion-dollar agreement.” Still, it’s huge news as Apple stands to generate vast revenue from developing 5G hardware with Broadcom.
If you’re interested in the geek-speak, Apple and Broadcom plan to develop “5G radio frequency components — including FBAR filters — and cutting-edge wireless connectivity components.” The companies aren’t starting from scratch, by any means, as Broadcom already has a “major” 5G component production facility in Colorado.
If you agree with me that 5G has a strong future, then this development provides another reason to invest in Apple now. Indeed, I’d consider this news item to be much more impactful than anything related to Apple’s upcoming VR headsets.
So, Is It Too Late to Buy AAPL Stock?
Are you tempted to take profits and bail on your share stake in Apple? The choice is yours, but don’t discount Apple’s relentless drive to grow and innovate.
Sure, Apple’s mixed-reality gear might not be a blockbuster hit. At least, we can commend Apple for taking risks and trying out a variety of ideas.
Long-term, AAPL stock will likely move higher as long as Apple continues to advance cutting-edge products and services. Therefore, it’s definitely not too late to start or add to a share position in Apple.
Could Apple’s 5G Deal Be a Game-Changer for AAPL Stock?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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