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.
Will AAPL Continue To Move Higher or Found Any Resistance? Find
Out Here
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.
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