Mobile Phone Sector Notes – RIM, Apple and Nokia

June 27th, 2011 by Trefis Team
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RIMM: Research In Motion logo
RIMM
Research In Motion
RIM Stock price chart

Source: Google Finance

The mobile phone sector continued to generate plenty of news last week. A few that caught our eyes are included below. Research in Motion’s (NASDAQ:RIMM) stock remained volatile during the week as the market punished the stock following its disappointing earnings release. Bloomberg came out with a report that Apple (NASDAQ:AAPL) is expected to launch new iPhone this September, and Nokia (NYSE:NOK) created some buzz this week as it announced the launch of some new phones.

RIM

RIM’s stock continued to remain volatile this week after it declined by more than 20% during the single trading session after the announcement of its earnings on June 16th. During the week, speculation about RIM’s takeover by Microsoft (NASDAQ:MSFT) or Dell (NASDAQ:DELL) increased, as RIM’s stock is now considered a bargain. [1] However, RIM’s stock did make a comeback during the latter part of the week having increased from a low of around $26 to $30.

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See our company analysis

Apple

Bloomberg created a stir by coming up with a report that Apple is expected to come up with a new version of iPhone in September. [2] It will have a stronger processor and a more advanced camera, and according to the same report, Apple is working on a cheaper iPhone specifically for developing markets to drive greater smartphone penetration globally. We estimate the iPhone accounts for over 50% of Apple’s value.

See our company analysis

Nokia

Nokia launched N9 smartphone with high expectations that it could spark a turnaround in its fortunes. [3] Nokia stock has been in constant downward spiral having declined from around $10 as of the beginning of the year to around $6 as of today. We believe N9 is unlikely to be a panacea for all problems that Nokia has found itself in. Nokia also launched 3 low cost phones for emerging markets, with the most notable feature of dual Sim card capability. [4]

See our company analysis

Notes:
  1. RIM’s low share price makes it a possible takeover candidate, June 21st 2011 [↩]
  2. Apple Is Said to Be Preparing IPhone With Faster Chip for September Launch, Bloomberg, June 22nd 2011 [↩]
  3. Nokia launched N9 smartphone, Nokia press release, June 21st 2011 [↩]
  4. Nokia launches 3 low cost phones, press release, June 21st 2011 [↩]