In the light of the rapidly approaching saturation of smart-phones market, Apple has reached staggering heights with its remarkable innovation and crafty production. But owing to its latest drop in costs of share and the continued decline, investors could potentially turn to alternative smart-phone brands. The obvious choices would include Nokia Blackberry.
Current market position of the three brands
- According to reports, Apple occupies 53% shares of the smart-phone market in the U.S.
- This is deemed to be the maximum share Apple could ever achieve in any country, especially where more than 50% of the population owns a smart-phone
- Minding the problems related to supply that have affected the iPhone 5 sales, this comes around as a pleasant surprise for the shareholders of Apple, who expected the value of stock to go merely beyond $750
With the near future advent of the new iPhone in June 2013, anyone would be expecting the minimalist and perfectionist organization to eradicate its battery, mapping, and design related problems in the mobile set. In the current scenario, Apple’s stock is more dependent on the investor sentiment rather than the financial position of the company; it has been quite stable and it only keeps getting stronger.
- On the other hand, Nokia allegedly sold its Lumia 920 at various launches in several locations worldwide
- However, the Windows Mobile of Nokia has just 2.7% of market share
- To raise money, the Finnish giant sold its headquarters and apparently leased it right back
- It is seen that the company’s sales is solid in Europe than in the U.S.
- But the sales of Lumia 920 have been low indeed, similar to what happened to Lumia 800, last year
- The phone has not been able to realize the hype around it, even after having corrections of previous drawbacks and innovative features.
- However, there is still hope for Nokia in China, where it has struck a deal with one of the biggest cellular operator, the China Mobile
Blackberry’s point of view:
- As for RIM, it has gotten its stock prices dropped by a 23%, because of fears over the introduction of latest fee structures by the company regarding the services for 10 models of Blackberry phones.
- RIM continues to maintain the position of the most preferred choice for emailing even after many enterprises abandoned the Blackberry interface for communication purposes.
- The need of the hour for RIM is to improve the wholesome experience regarding the aspects of its smart-phone other than security. RIM has been losing its market share all across the continents, and it is doing particularly badly in China.
Analysis of Stock
The three producers of smart-phones possess different product cycles, realities, and to some extent, even different market segments. Hence it will be appropriate to compare their stock performance rather than a direct comparison. For Apple (AAPL), Morningstar, as dated on 28th December 2012, got 10 out of 14 analysts who recommend purchasing the stock, two of the remaining four recommend “outperform,” and the remaining two gave a rating of “hold”. As for Nokia, in the 9 analysts, 5 of them provide a rating of “hold”, one rather prefers “underperform”, while three gave “sell” rating. For RIMM, just 1 analyst out of 24 recommended the stock to be purchased, one provided “outperform”, 17 provided a “hold”, while 1 gave it a “underperform” and 4 provided a rating to “sell”.
The final verdict stands
In spite of the decline of AAPL’s stock prices, after the iPhone 5 launch it is performing much better than Nokia and RIM due of its unrivaled cash flow, sales, and well-grounded presence in the mobile market. While NOK and RIMM have new and innovative products in their caskets; their outreach is seen to be significantly restricted by the firm opposition demonstrated by the series of iPhones of AAPL. Apple remains to be on the top-drawer in the sector of smart-phone for 2013.
This is a guest post by Richard Hill. After purchasing his latest iPhone from mobilephones.org.uk, he has been trying to compare his phone with other brands in terms of quality and pricing.