Communication improvement is an essential part of human society progression. With the latest cell phone technology, smartphones take care of all handheld computing and communications needs in a single, compacted device. With the success of iPhone from Apple Inc. (AAPL), which once passed Exxon Mobil Corporation (XOM) as the world's most valuable company, smartphones are impacting today's economy greatly.
This article will analyze the impact of age, income and ethnicity on smartphone decisions and thus help investors to better understand if each smartphone company is planning and executing the right strategy for its products. The data is obtained from Alexa.com, owned by a subsidiary company of Amazon.com, Inc. (AMZN). Alexa.com provides traffic data, global rankings and other information on 30 million websites with over 6 million visitors each month.
Apple.com from Apple Inc. in the United States, Blackberry.com from BlackBerry in Canada, formerly known as Research in Motion (RIMM), Nokia.com from Nokia Corporation (NOK) in Finland, Htc.com from HTC Corp in Taiwan, and Samsung.com from Samsung Group in South Korea (SSNLF.PK) are compared and analyzed for their traffic with the breakdown by age, income and ethnicity.
Relative to the general internet population, Apple.com is popular among the age groups of 25-34 and 35-44, while the rest are popular among the age groups of 18-24 and 25-34. Nokia.com is highly popular among the age group of 18-24.
Relative to the general internet population, Apple.com is popular among the income group of $30k-$60k, $60k-$100k, and $100k+, while the rest are only popular for the income group of $0-$30k. Htc.com is also popular among the income group of $30-$60k.
Relative to the general internet population, Apple.com is very popular among Caucasian and Hispanic populations. Blackberry.com is popular among African, Asian, and Hispanic populations. Nokia.com is highly popular among Asian and also popular among Middle Eastern and other populations. Htc.com is popular among Asian, Middle Eastern, African American and other populations. Lastly, Samsung is popular among Asian, Hispanic, Middle Eastern and other populations.
In short, based on the data comparisons, while Apple.com's main interests are from a higher income group, it may not be Apple's best interest to focus on a cheaper iPhone. On the other hand, BlackBerry and Nokia need to be very competitive for their smartphone pricing and focus on the Asian population while catching up with the Caucasian population.
Apple Inc. has an enterprise value of $389.17B with a market cap of $425.98B. AAPL has a total cash of $39.82B with zero total debt. AAPL generates an operating cash flow of $56.73B with a levered free cash flow of 34.38B.
Nokia Inc. has an enterprise value of $8.30B with a market cap of $14.84B. NOK has a total cash of $13.43B with a total debt of $7.18B. NOK generates a negative operating cash flow of -457.32M with a levered free cash flow of $1.08B.
BlackBerry, formerly Research in Motion Limited, has an enterprise value of $3.95B with a market cap of $6.71B. RIMM has a total cash of $2.73B with zero total debt. RIMM generates an operating cash flow of $3.15B with a levered free cash flow of $758.62M.
Note: This is could be a very biased comparison based on Alexa.com's Internet traffic data. Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.