Instead of Beats Music, Apple, Inc. Should Be Bidding On This Company

How big is Apple, Inc.'s commitment to wearable computing? Apparently not big enough to keep the company from chasing Beats Music rather than category killer Fitbit. Fool contributor Tim Beyers explains why that's a mistake in the following video.

According to new data from Canalys, Fitbit accounted for roughly half of the 2.7 million wearable bands shipped in the first quarter. Nike's own entry -- the FuelBand --  is facing cancellation as a result of Fitbit's ascent.

Tim says further gains are likely. IDC expects shipments of wearable computing devices to triple to 19 million this year and then expand to nearly 112 million in 2018. Now compare that with the streaming music business. The International Federation of the Phonographic Industry (IFPI) says revenue from services such as Spotify and Beats Music grew 51% last year to surpass $1 billion. In bidding on Beats, Apple would be chasing a lower-growth opportunity.

There's also Apple's earlier bets on fashion talent to consider. Adding Paul Deneve from Yves Saint Laurent and Angela Ahrendts from Burberry signaled an intent to build a new portfolio of wearable products. Why not bolster the effort with acquisitions? Perhaps Apple is already too far along in developing the iWatch to make a deal for Fitbit work.

Either way, we should know more soon. CEO Tim Cook kicks off Apple's annual Worldwide Developers Conference with a June 2 keynote at San Francisco's Moscone Center.

Now it's your turn to weigh in. Do you think Apple's making a mistake by overlooking Fitbit? Please watch the video to get the full story and then leave a comment to let us know your take.

What if you could buy the next Apple, right now?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

The article Instead of Beats Music, Apple, Inc. Should Be Bidding On This Company originally appeared on

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends and owns shares of Apple and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story