Gadget Stock Watch: Pre-Macworld, RIM's Selloff, more

1. RIM leads handset stock selloff. A downgrade of Research in Motion (RIMM) by a longtime bull sent RIM shares reeling to a 7% loss to $93.70 on Friday. Handset makers fell across the board as the Nasdaq lost 2%.

2. iPhone-Google connection. The New York Times reports data provided by Google (GOOG) shows a surge in traffic from Apple's (AAPL) iPhone. In particular, traffic on Christmas surpassed incoming traffic from any other mobile device. Days later the iPhone gave way to the Nokia-backed (NOK) Symbian OS, but its traffic still was higher than any other type of phone, says the Times. Separately, Google is said to be introducing an updated version of its mobile "Grand Prix" software (which provides easier access to Gmail, Reader, Picassa, etc.) on Monday.

3. No iPhone in China just yet. Apple (AAPL) and China Mobile (CHL) have ended talks of launching the popular iPhone in China. Analysts were not surprised by the decision given difficulties surrounding revenue sharing and technological matters. China Mobile reportedly has not ruled out reviving discussions at a later date.

4. Mac buyer's remorse. The Wall Street Journal discusses the negative impact Apple's (AAPL) fast product upgrade cycles have on consumers. Piper Jaffray analyst Gene Munster: "Given the fact that the pace of Apple product improvements is between two times and four times faster than PC-based products, Apple buyers will always have a higher degree of buyer's remorse."

5. Netflix slips in upgrade ahead of Apple. On Monday Netflix (NFLX) will extend its unlimited online movie streaming service to all of its users (excluding those on its $4.99/month plan). A report by AP says the unlimited option could erode Netflix's profits, since it isn't raising monthly rates, but will have to pay higher licensing fees to studios. Apple (AAPL) was expected to make a major announcement related to movie rentals via iTunes at Macworld on Tuesday. Meanwhile, Apple has been replaced by Amazon (AMZN) as supplier of the annual Super Bowl song giveaway, which could eat away at iTunes' dominance, but may simultaneously boost Amazon's sales of iPods.

6. Nokia in the driver's seat. Nokia (NOK) is expected to announce higher Q4 profits and market share when it reports earnings on the 24th. In fact, all major handset makers are seen posting market share gains at struggling Motorola's (MOT) expense. MOT reports earnings on the 23rd.

7. Toshiba to launch HD DVD offensive. Toshiba (TOSBF.PK) America plans to beef up its marketing campaign for HD DVD and offer "extended pricing strategies." Toshiba suffered a major setback earlier this month when Warner Bros. (TWX) said it will only release Sony's (SNE) Blu-ray DVDs.

Comments

[msassociates:]

Obviously, the iPod is a big seller for Amazon and Amazon is a big customer of Apple. Does anyone know the total percentage and amount of Apple's iPod sales to Amazon? Is it in their 10K.

2008 Jan 14 10:38 AM