How to Make the Best of the Mobile Technology Market in 2021
It can be quite hard to quantify the size of the global mobile technology market, particularly given the various niches that exist within it.
However, the world’s smartphone market alone was estimated to be worth £6.52 billion at the end of 2019, with likely to increase further as mobile penetration rates continue to increase incrementally across the globe.
Interestingly, mobile technology has become even more integral in the wake of the coronavirus, with the market demand for smartphones, tablets and similar devices increasing across the board.
This has made the brands behind such devices increasingly appealing from the perspective of investors, with many listed in various global stock indexes. But which companies dominate this space, and how should you invest in the marketplace?
What Companies and Indexes Dominate the Mobile Tech Market
Perhaps the best technology index is the iconic Nasdaq 100, which focuses on the leading tech stocks and shares in the US.
Take Apple (NASDAQ:AAPL), for example, which is one of the indexes most widely-backed stocks and currently boasts a total market capitalisation value of $700.6 billion.
However, there are less obvious and revered stock options featured on the Nasdaq 100, some of which are becoming increasingly influential in the mobile technology space.
One of the best examples is provided by Nvidia, which announced in September last year that it had acquired computing giant Arm for $40 billion. While Arm’s core business model will remain independent under the terms of the deal, Nvidia did procure access to the brand’s huge range of licensing partners and valuable intellectual property.
Subsequently, Nvidia plans to introduce its own graphics and AI IP into the chain, facilitating its expansion into mobile markets across the globe.
This could mean that certain smartphones will be integrated with coveted Nvidia GPUs in the future, making the brand an increasingly viable stock option over time.
5G Stocks and Trading Mobile Stocks via CFDs
There’s no doubt that trading indexes such as the Nasdaq 100 offers several advantages to investors, especially from the perspective of diversification and distributing risk across a wide selection of high-performance assets.
But which investment vehicle is best when targeting such stocks? Arguably, exchange traded funds (ETFs) and contracts for difference (CFDs) offer the greatest value, with the former more suited to safer, long-term investments that deliver incremental gain.
Conversely, CFDs provide significant opportunity for speculation, making them ideal for leveraging short-term volatility and price movements in the shorter term.
CFDs certainly provide greater flexibility to investors during times of economic uncertainty, particularly when you access them through platforms such as the MetaTrader 4.
When it comes to individual mobile stocks, you may want to consider targeting brands that operate within the 5G space. This should offer optimal opportunities for growth, especially if you focus on the firms that are constructing 5G ecosystems for private networks and B2B mobile providers.
According to telecom industry group 5G Americas, the addressable market to incorporate 5G into private business networks will increase sharply during the next five years, from just $1.9 billion last year to $16.9 billion by 2025.
Smartphone brands that quickly incorporate 5G will be best placed to capitalise on such growth, while establishing themselves as high-growth stocks in the years ahead.