Two ways to profit from smartphone growth

Article Excerpt

Global demand for smartphones remains strong. New models continue to spur users in developed countries to upgrade, while improving economic conditions make those devices more affordable in developing regions. Both Apple and Alphabet, the parent company of Google, will continue to benefit from that trend. However, Google’s Android software powers over 80% of the world’s smartphones, which helps to drive traffic to its highly profitable Internet search services. We feel that further boosts Alphabet’s ability to profit from growing smartphone demand. ALPHABET INC. (Nasdaq symbols GOOG $944 [class C: non-voting] and GOOGL $960 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 680.2 million; Market cap: $659.2 billion; Price-to-sales ratio: 6.6; No dividends paid; TSINetwork Rating: Above Average; www.abc.xyz) is the holding company for Google’s Internet search business and its smaller, riskier operations. The company calls those smaller businesses its “Other Bets”; they sell home thermostats, high-speed Internet and digital TV services, among other…