Market Commentary / Company Spotlights

Could this Small Cap Shatter Apple’s App Store

  • Declan O’Flaherty

    Declan holds a Bachelor of Commerce from the University of Alberta and has over 4 years of experience investing in financial markets. As a fundamental investor, Declan embraces the investment principles of Warren Buffett and his disciples. This puts a focus on finding businesses with healthy financials, competent and accountable leader, enduring competitive advantages, and those that are selling at discount to what they are worth.

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The richest people in the world look for and build networks, everyone else looks for work. – Robert Kiyosak

It is no secret that Apple Inc ($AAPL) is one of the greatest companies of all time.

From its humble beginnings in Steve Jobs’ garage, the California computer company grew into a $2 trillion tech giant producing over $100 billion of free cash flow per year.

With a fantastic management team, multiple high-margin products and services, and a balance sheet stronger than ever, it is clear that Apple deserves to be in the position that it is today.

But it hasn’t always been that way.

After years of complacency during the 90s, Apple revived itself when it rehired Jobs as its CEO (after parting ways in 1985) and released the crown jewel of modern technology, the iPhone.

While this mobile device certainly garnered a reputation for being the go-to product of its era, it is actually another one of Apple’s products that takes the cake.

Apple’s App Store and operating system, iOS, are what truly make the company what it is today.

By offering consumers access to over 2 million applications (apps), on the best hardware in the world, Apple generates the ultimate network effect without having to spend a dime.

Here’s how it works…

The Operating System

Apple’s iOS operating system acts like the brain of the iPhone by organizing and controlling the hardware and software on the device so that it operates efficiently and in a predictable manner.

Without an operating system, none of the apps on your iPhone or computer would function properly, essentially rendering them useless, because the device would fail to understand what software is being requested.

However, due to operating systems like Apple’s iOS, Microsoft’s WindowsGoogle’s Android, and others, modern computers can carry out multiple programs all at once without sacrificing performance or memory.

However, its value doesn’t stop there.

To ensure that they maintain control over the platform, Apple requires software developers to use a specific programming language to produce apps or to sell products on its devices; an example of this is Apple’s Swift.

In doing so, they can charge a 30% commission fee for anything sold on its OS, via the App Store; this includes any in-app purchases made after an app is downloaded.

While this may seem unfair to the businesses or developers using the OS, it is the price you have to pay if you want access to Apple’s estimated 1 billion iPhone users.

Sure, you could go somewhere else, but the cost of switching is so massive that it’s better to just accept the commission fee and make the most of it.

That is why Apple can charge what they do, and why the App Store alone was able to generate over $85.1 billion in sales in 2021.

With one of the most durable competitive advantages to ever exist and a plethora of high-value products, the once modest computer company is now a force to be reckoned with.

Although, things might not be as rosy, or profitable, as they seem…

Down with the Monopolies!

In recent years, customers (mostly businesses) are demanding more equitable solutions for storing data and developing software.

A few examples of this are Meta’s pushback on Apple’s new iOS privacy policy, Epic Games’ lawsuit with the corporation, and Netflix’s attempt to avoid the 30% compensation fee.

Due to this trend, consumers are adopting a hybrid model where they run their systems on multiple platforms, instead of through a single entity like Apple.

This is giving more power to the consumer and makes them less dependent on the few networks that own the market.

But it isn’t that easy.

Since most of these operating systems run on their own programs, it is quite difficult to contextualize the data because each of them uses a different model, meaning that a consumer is forced to pay more if they wish to diversify their sensitive information.

While this historically has been a competitive advantage for these large corporations, the reality is that customers are no longer satisfied with the status quo and are demanding more.

Fortunately, a new generation of operating systems is emerging and one small-cap company is seizing the opportunity to its fullest potential.

VERSES Technologies

VERSES Technologies’ COSM OS is the next generation of operating systems making waves in the market.

By leveraging artificial intelligence and Web 3.0 technology, COSM collects data from various data streams (sensors, actuators, devices, cameras, robots, and drones) and contextualizes it so that it is easily understood across the entire network.

From there, the operating system can produce a fully integrated network that analyzes the data and optimizes it for real-world applications, all while running without a hitch.

This is extremely useful because it enables companies to run multiple devices from different companies without having to pay additional costs to integrate them.

Not only that, but because COSM combines deep learning with its network, the operating system will improve exponentially over time, thus creating more value for its customers and reducing operational costs for VERSES at the same time.

Similar to Apple, VERSES is creating an app store on COSM OS for Web 3.0 applications that include its very own WayFinder™ app.

WayFinder utilizes a spatial model that creates a three-dimensional digital twin of an environment such as a warehouse or retail store and provides optimization and automation for task-based operations like supply chain and logistics.

In coordination with either a human employee, robot, or drone, WayFinder directs users through a multi-modal guided workflow that aims to reduce errors and assist workers in several tasks including, picking, putting away, inventory inquiries, and replenishment; this is achieved through a mobile handheld device or an augmented reality headset.

To date, WayFinder is a proven concept that improves operational efficiency by 35% to 50%, and saves its customers $8 million annually, while doubling its profitability.

For its efforts, VERSES was rewarded a 10-year, C$ 34 million contract from one of its customers and is seeking to add more contracts like this in the near future.

And they are just getting started.

Ultimately, the Company seeks to create a network of developers and businesses all working together to produce the next generation of Spatial Web applications on its COSM operating system.

In doing so, VERSES will achieve a very similar durable competitive advantage to Apple’s App Store and is likely to even surpass it.

With a plethora of Web 3.0 use cases yet to be discovered, and the company’s willingness to work alongside and train developers, VERSES is setting itself up to be the next great tech giant.

Think about it, if Apple can deliver over 2 million viable applications on its OS, what will the next generation of technology be capable of?

To let you go with one final thought, you may be wondering, “why doesn’t a company like Apple or Microsoft create this operating system themselves?”

Personally, there are two arguments as to why I believe this is unlikely to happen for quite some time:

1. There is too much money at stake.

Apple, Microsoft, and other like them, are legacy Web 2.0 businesses that are making a ton of money from their current operating systems.

If they were to introduce a next-generation product like this, now, they would end up cannibalizing their revenue streams and destroying value from their existing products.

For them to make the shift, it is likely that they must first realize losses in their market share before adopting this highly disruptive technology.

2. The VERSES team are experts on the Spatial Web

VERSES Technologies is uniquely positioned because it has built a team of the best and brightest when it comes to Web 3.0 technologies.

Through its Founder and CEO Gabriel Rene and its President Dan Mapes, the Company offers a combined 40+ years of experience in the industry and is acquiring other like-minded individuals to join their team.

In addition, Mr. Rene is also the Chairman of the Spatial Web Foundation and co-authored, alongside Mr. Mapes, an international best-selling book titled, “The Spatial Web – How Web 3.0 Connects Humans, Machines and AI To Transform the World.”

Given their expertise on the Spatial Web and their ability to demonstrate its capabilities, it is a no-brainer that the VERSES team is positioned to succeed in the next era of computing technology and beyond.

If you are interested in learning more about VERSES, you can access their investor presentation by clicking the this link.

To add VERSES to your watchlist, check them out on the NEO Exchange, stock ticker $VERS, and the OTCQX, stock ticker $VRSSF.

For a unique glimpse into what is happening at VERSES, check out our one-on-one interview with CEO Gabriel Rene.


We are not brokers, investment, or financial advisers, and you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Edge Investments and its owners currently hold sixty thousand dollars in Verses Technologies stock and are compensated by Verses for Investor Relations Services, amounting to eighty-nine thousand seven hundred sixty dollars. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research.

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