A reader asked for my opinions on mobile-phone stocks, so I thought I’d give everyone a quick run-down of my opinions on the big names in the space:
Apple (AAPL) – BUY
What can I say? I’m an Apple shareholder and a huge fan of their products. I fully expect the iPhone to resume taking market share, particularly if the company releases a new model this summer as they have every year since 2007. Plus, the company is still taking market share in PC’s with no sign of a slowdown. I’m not particularly bullish on the iPad, but even I can’t complain about potential icing on this cake.
Motorola (MOT) – SELL
Yes, the Droid is awesome, but the market is now being flooded with Google (GOOG) Android powered phones and that means too much competition. Verizon (VZ) is now offering two-for-one deals on the Droid and Devour, and Motorola doesn’t have any other strong models that can pick up the slack.
Nokia (NOK) – HOLD
I was tempted to slap a sell on Nokia, but the fact remains that they just had a decent quarter and that means it could scrape back some market share from the likes of Apple and the Android lot.
Microsoft (MSFT) – SELL
Microsoft has made some positive strides in their mobile-phone unit, but it’s just not enough to make any kind of meaningful financial impact on the company. Apple’s market-share gains in PC’s won’t be reversed, and we’re also moving towards a world of cheap, or even free software, and that aint good for Mister Softeee.
Research-In-Motion (RIMM) – HOLD
RIM still has a stranglehold on corporate IT departments for mobile email, but I worry that its position in consumer smartphones will be eroded by the iPhone, and flood of Android and Windows Phone 7 models that are going to hit the market later this year. So color me as on-the-fence.
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disclosure: long Apple (AAPL)
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