Ever since June of 2011, we all have been huge fans of Apple Inc. (NASDAQ:AAPL). Although, iPhone 5 has been a disappointment to some, it could be the biggest smartphone of all times. After Apple’s courtroom victory against Samsung, Apple is in perfect balance to converge to a fair value estimate of $800 each share.
Some people are bothered about the latest iPhone being an incremental upgrade instead of being a re-invention. However, it could be the new normal for the smartphone industry. The pent-up demand for the device is undoubtedly incredible, as people from all aspects have been waiting for the release of this phone with bated breath.
The major risks that the new iPhone has presented lie in the mobile carriers and at the competitor firms. CFO of Verizon has announced that the iPhone 5 will cost somewhere around $449 and will have small effect on margins. He also mentioned that if the demand is very high the impact could be more extensive. AT&T, Sprint and Verizon are likely to feel margin pressure throughout the holiday season. With 4G technology, Sprint and its popular unlimited data options can gain some market shares, but there may not be any significant market shifts.
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Nokia Corporation (ADR)(NYSE:NOK), Samsung and Research In Motion can lag way behind in this regard. The Google/ Samsung cohort that is already damaged by the spectacular legal loss will probably lose further market shares. iPhone 5 is likely to overshadow any smartphone release that is lined up in the next few months. For RIM and Nokia, the release accentuates how far behind they are. Nokia’s latest phone, however, show some positivity.
on the flipside, Facebook could be a promising contender. Apple has focussed on integrating the social network throughout iOS 6. Although shares of Facebook have not been in a great state, successful placement of ads on Facebook app could help in bettering the situation.