Mobile Weekly Notes – Apple, RIM and Nokia
Source: Google Finance
Apple’s (NASDAQ:AAPL) stock under-performed for the majority of the month before staging and end of month rally on rumors about specifications of an iPhone targeted towards more price sensitive emerging markets surfaced. This could launch as soon as September this year. Research in Motion’s (NASDAQ:RIMM) stock volatility was much lower this week as investors have priced in much of the bad news. Nokia’s (NYSE:NOK) stock also bounced this week after investors bailed out recently on concerns over its smartphone strategy.
Apple
One report suggested that Apple will bring out a mid-range iPhone specifically for price sensitive emerging markets. [1] However, another report contradicted this report mentioning that iPhone 3GS will continue to be served as the company’s low-end handset. [2] Nonetheless, this strategy from Apple aims to penetrate the price sensitive emerging markets, in which it has little presence currently. If Apple indeed comes up with a low-end iPhone, it could hurt the already struggling competitors Nokia and RIM even more. Nokia and RIM depends heavily on emerging markets for their business.
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RIM
This week the rumor associated with RIM was that the company could cancel the development of 10 inch PlayBook tablet in favor of QNX powered BlackBerry phone. [3] During the recently held earnings call, the company had announced that it shipped around 500,000 PlayBook tablets within 6 weeks of its launch in April. [4]
Nokia
Nokia’s stock moved up a little this week after taking a lot of beating during the last few months having declined from around $10 as of the beginning of the year to around $6 as of last week. The issues engulfing Nokia has remained as a result of which the company announced its updated revenue guidance for the full year 2011 on May 31st. [5] This was then followed by ratings downgrade of Nokia by credit ratings agencies. [6] [7] Nokia is clearly struggling, however, the company expects the launch of N9 smartphones to improve its fortunes. [8]
Notes:- Apple seen introducing mid-range contract-free $350 iPhone in Sept., Apple Insider quoting Deutsche Bank as the source, June 27th, 2011 [↩]
- Just One New iPhone In September, Says BMO, Barron’s quoting BMO Capital as the source, June 27th, 2011 [↩]
- 10 inch PlayBook Production Stopped In Favor of First BlackBerry ‘Superphone’, N4BB, June 28th, 2011 [↩]
- RIM earnings news release, June 16th, 2011 [↩]
- Nokia lowers Devices & Services second quarter 2011 outlook and updates full year 2011 outlook, May 31st 2011 [↩]
- Fitch Downgrades Ratings on Nokia Corporation-Reuters, June 7th 2011 [↩]
- Standard & Poor’s Ratings Services Lowers Ratings for Nokia Oyj, Reuters, June 9th 2011 [↩]
- Nokia launched N9 smartphone, Nokia press release, June 21st 2011 [↩]