The Secret of Apple's Success

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Apple recently has its developers' conference, and it looks as if the big takeaway is that David Einhorn is right: Apple is a software company. CEO Tim Cook announced that Apple's app center has had more than 30 billion downloads and paid out more than $5 billion to developers. That shows the incredible power of Apple's network. Research In Motion, for example, is losing market share because it just can't offer anything close to what Apple can. In a network, lock-in is a critical stage, and that seems to be Apple's big secret. All of that great software content is what keeps people in the Apple network and is what will propel the company going forward. Apple's shares are still an attractive buy today.

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David Meierowns shares of Apple.John Reevesowns shares of Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.Motley Fool newsletter services recommendApple, Google, Microsoft, and Nokia. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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