Monday, April 11, 2011

5 Companies Getting Rich Off Apple

Apples (NASDAQ: AAPL ) transformation over the past five years was borne out of
a perfect storm of timing, technology, and trends. At the exact moment that high
speed Internet became ubiquitous in economies with expendable income, Apple was
there with the iPod, the iPhone, and most recently, the iPad to act as the face
of how consumers would interact with new media. But Apples success owes much to
its symbiotic relationship with companies that have embraced its products and
business model. Those companies, from tiny video game makers to the worlds major
chip manufacturers, have grown rich as a result of Apple. Look no further than
Ngmoco, which was founded in 2008 to exclusively make games for Apples
mobile-device platform. The success of its titles led to Dena purchasing the
company for $400 million in 2010 . Here are five other companies thriving thanks
to Apple: Rovio The creators of  the omnipresent mobile-device game Angry Birds
have brought its signature title to Facebook, Google (NASDAQ: GOOG ) Android,
and a number of other platforms, but its most closely associated with Apple
devices. Rovio raised $42 million in March after its most recent round of
funding and is planning to offer an IPO in the next few years. Given the value
of the Angry Birds brand, a high profile acquisition of the company by someone
looking to capitalize on the runaway success of the iPad would not be
surprising. Intel (NASDAQ: INTC ) Its less that Intel owes its overall success
to Apple Microsoft (NASDAQ: MSFT ) and the PC boom of the 90s were responsible
for that but that Apple has played a significant part in Intels continued
relevance. The announcement in 2006 that Apple would begin using Intel
processors rather than PowerPC chipsets helped Intels stock recover from a
massive decline, something that happened again in 2009 when Apple removed all
remaining software support for PowerPC architecture in an operating-system
update. Arm Holdings (NASDAQ: ARMH ) Apple is just one of many businesses in
which this British technology company has its fingers. The success of Apples
iPhone 4 and iPad, both of which incorporate Arm processors, has been hugely
influential in raising the companys overall value. The stock has grown 89% since
the beginning of 2009. AT&T (NYSE: T ) AT&T already controlled the largest
mobile subscriber base in the U.S. when the iPhone debuted in 2007 62 million
subscribers vs. Verizons (NYSE: VZ ) 60 million. It was Apples smartphone,
however, that kept the telecom relevant as Verizon has grown and overtaken AT&T
since then. The success of the iPhone 4 has directly led to the 19% growth in
the companys stock since last June. Electronic Arts (NASDAQ: ERTS ) While Apples
stock grew 35% between 2008 and 2010, Electronic Arts fell by almost 75%. The
one-time biggest video game publisher in the world had been laid low by the
recession and a number of retail flops. In the past 18 months, though,
Electronic Arts has found renewed success on Apples iPhone and iPad, its games
taking up most of the spots on the 2010 best-seller lists on both platforms.
Though mobile games still account for only a portion of the companys overall
revenue, their success on Apple platforms has helped see EA shares rise by 25%
since February. As of this writing, Anthony John Agnello did not own a position
in any of the stocks named here. Follow him on Twitter at  @ajohnagnello and 
become a fan of  InvestorPlace on Facebook.

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