Bear Stearns Analysts On Consumer Electronics Stocks (AAPL, RIMM, STX, MXO, WDC)

Early this week, Bear Stearns analysts Andrew J. Neff, Bill Hand and Ted Chung have sent notes to clients on a number of consumer electronics hardware stocks. Key excerpts:

● AAPL: Apple shifts NAND orders from Hynix to Samsung to get better pricing. Participating in Bear Stearns Asia Bus Tour, Hynix noted today (3/6) that AAPL (7%-8% of sales) has recently reduced its NAND orders to Hynix owing to Hynix's inability to meet AAPL’s pricing requirements with some or all of the business shifting to Samsung, we believe. Stock impact: mixed/positive for AAPL (better pricing on NAND, contrary to concerns about AAPL order cuts, but can't quantify if simply a shift from Hynix to Samsung).

● RIMM: Sprint opts not to support RIMM’s BlackBerry Client program. Based on our channel checks, we have learned that Sprint will not support RIMM’s BlackBerry Client program, potentially limiting RIMM’s efforts to emerge as a default wireless email provider. As background, BlackBerry Client licensing program enables third party handset providers (NOK, ERICY, etc.) to offer BlackBerry email service on non-RIMM handsets. Stock impact: modest negative for RIMM.

● STX/MXO, WDC, KOMG: Disk drive pricing remains in line with expectations, according to STX, WDC. Based upon our conversations with disk drive vendors (WDC and STX), we believe price declines are in line with seasonal expectations, underpinned by media supply tightness which supports ongoing price discipline. Moreover, STX indicated at conference yesterday that pricing was at the “low end of seasonal trends