Apple (NASDAQ:AAPL) (6.5%) (AAPL – $154.12 – NASDAQ) designs computers, mobile phones and other hardware, along with personal and professional software. Apple inspired the digital music revolution with the iPod and iTunes, redefined the mobile phone with the iPhone and App Store, invented an entirely new category (tablets) with the iPad, and continues to be at the forefront of mobile technology with the Apple Watch, Apple Pay and Apple Music. Perhaps Apple’s greatest innovation has been its integrated ecosystem, which retains customers and produces a “halo effect” for other Apple devices. At about 11% of total revenue, Apple’s less cyclical Services business is growing at a 20% run rate and is accretive to margins.
From GAMCO Growth Fund third quarter 2017 commentary.
