In Part One of this series on Apple, Inc.'s earnings potential, we looked into how Apple was playing in the multi-billion dollar home theater business. Consumer Electronics (not including laptop and desktop computers) is a massive multi-billion dollar a year industry. Apple, of course, made a splash with the iPod and iPhone product lines, but it is conspicuously underplaying its potential role in the living room with the underpowered Apple TV.

And yesterday, Apple delivered better than expected earnings of $3.38 Billion on revenue of $15.68 Billion for their first quarter of FY2010 which ended on December 26 (their financial year is about 3 months and 5 days ahead of the calendar year). “If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Steve Jobs, Apple’s CEO. It's kind of a stretch to annualize the Holiday shopping quarter. But if does that keeps up, Apple will soon crack the top 10% of the Fortune 500. They'd be even higher if the Fortune 500 were ranked on earnings instead of revenues.

It's wonderful news for Apple shareholders. But, I believe it could be even better - perhaps $1 Billion better with very little effort and almost no R&D. So in this part, we'll take a look at the long forgotten and once failed tactic of licensing the Mac OS to clone manufacturers.