Wireless: Old Tech, New Uses

In the 1990s, cellular telephones were known as the best form of wireless technology. In addition to the cell phone, consumers began to network their homes using wireless technology to avoid line installation. Since then, consumers have relied more and more on wireless technology. Wireless technology companies were the darlings on Wall Street in the late 90s of which many portfolios courted. Now it seems that with age, they’ve been all but forgotten. With the advent of smartphones, tablets, peripheral electronic devices, and more, the applications for wireless technology have never been this diverse.

Source: https://socialmediaseo.net/tag/ipad/

So, you went to the Apple store this past weekend and picked up one of their hot-ticket iPads, either for yourself or as a gift - maybe both! By itself, it’s a glorified iTouch, able to perform a few tasks and play music. It’s only when you unleash the wireless connectivity to the internet that it truly becomes a thing of beauty and mobility. To connect to the internet, the iPad needs a wireless device inside, and you need either a service plan with a telecommunications company or a wireless network. These components and wireless hubs can be provided by wireless solution companies.

Let’s say your teenage kids or grandkids own a gaming console like the XBOX 360, Playstation 3, Wii, or a Nintendo/Playstation handheld device. All of these devices are setup to function effortlessly on a wireless network or even peer to peer as in the handheld devices. All of which are provided by select wireless solutions companies who are able to provide the component parts.

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Source: https://www.props.eric-hart.com/wp-content/uploads/2010/04/nokia_timeline.jpg

How about your cell phone? I owned a Nokia cell phone for the longest time in the late 1990s. All my phone did was dial out and receive calls. I couldn’t imagine any more use for such a device; but I tell you, it hit me on my honeymoon in Hawaii when I typed in “Mexican Food” into my Google map application for the iPhone and 3 needles popped up saying, “Paco’s Tacos”, “El Ranchito”, and “Rubios” that this little gadget was awesome! Knowledge is power, and this phone is smart!

The market for cell phones has been saturated. The only people that don’t have one in the U.S. are children under the age of…10? All kidding aside, consumers are starting to want the added functions that smartphones provide: access to the internet, email, news, social networking, games, global positioning satellite (GPS) access, applications, weather reports, movies, and much more. That means that component providers are seeing order increases as a new wave of technological upgrades wash over the consumer. That spells increased wireless component demand.

You recently cut your cable bill in favor of Netflix or Hulu on your set-top box or bluray player? Or you want to just stream multimedia to your TV from your computer through a media center device? Those devices come with wireless solution components. Soon you’ll be able to just skip a set top box because the TV will just integrate the technology along with wireless connectivity. All of which is provided by wireless solution component providers.

Source: https://www.wired.com/images_blogs/epicenter/2010/11/wifi_onboard_brian_brooks.jpg

Wi-Fi local access networks (LAN) are popping up everywhere you go. In the air: Delta Airlines announced Free Wi-Fi connectivity on their flights from November 20, 2010 to January 2, 2011. Alaska Airlines announced Wi-Fi connectivity in October. American Airlines is offering a 30 day Wi-Fi pass for $4.95 on all 767-200, and select 737s and MD80 airplanes. I had Jury duty last Wednesday in downtown San Diego. For the day, waiting in the lounge, I had free Wi-Fi access to stay connected to the markets and clients. Going out to lunch at Panera Bread, you can have Wi-Fi access while you eat. People want to always be connected to the web, and it looks like they’ll be able to through wireless solution providers.

As you can see, the applications for wireless technology are more diverse today than in the glory days of high P/E wireless stocks in the late 1990s. I think this is a group of stocks that has been overlooked by many. If you’re so hot on Apple handheld devices, why not invest in some of its component providers? Specifically, the wireless technology it takes to really unlock its power.

About the Author

Wealth Advisor
ryan [dot] puplava [at] financialsense [dot] com ()
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