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Analysts question the idea Nokia (NOK -5.8%) will be a major beneficiary of the Apple-Samsung...
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Tuesday, August 28, 2012, 1:27 PM ETAnalysts question the idea Nokia (NOK -5.8%) will be a major beneficiary of the Apple-Samsung verdict. While expecting Windows Phone to get a lift from the ruling, Berenberg argues Nokia's upcoming Lumia phones still have "no chance" of competing against Apple and Samsung, and that the market is pricing in margin, ASP, and and market share improvements that might not arrive. MKM recommends buying October 3.5/2.5 or 3/2.5 put spreads.
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This news story has 18 comments:
Well. They all assume that the new phones will be purely received, because consumers just want Apple and Samsung and not Nokia.
They are also talking about the PE of 10 for Nokia.
I find this really a bit too simplistic.
1) Nokia has a lot of cash that you need to deduct from the PE. As always the super smart analysts havent done this I guess
2) It is the typical extrapolating the future fallacy that makes analysts so poor predictors of future trends. Nobody knows what consumers will want in 6months. Maybe consumers will be thrilled by Lumia smartphones, maybe not
3) There is more to mobiles than just super-premium smartphones
4) A PE of 10 is not too high coming from low earnings and having still a high potential for earnings improvement
The most important result of the ruling may in fact be that we can more clearly see that Google's acquisition of Motorola and its patents is benefiting it, and while it looked for a while there as if no one really cared about buying patents (see: the weak offers to Kodak and the relative disinterest in RIM as examples) this case may have changed that, again.
It's not just about iPhone & Android... it's about market share WORLDWIDE... They are gaga for inexpensive, reliable smart(er)phones worldwide, anyone who is well traveled knows this. With a global recession mulling, do the math! Think outside the rectangle!
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I am wondering if these guys make rational decisions based on technology or quality.
Please let me know if I am completely off with my assumption.
No matter how hard teenagers try to be different, they are among the groups of consumers who are influenced mostly by trends set out by idols or by tech companies.
NOW you can wake up because the Nokia and Win8 are coming to the other major carrier with more than just an entry level phone this time! I think you know what I'm referring too! Win8 will be great on the phone, I just don't look for it to really take off on the pc platform.
There is not just the USA market for them.
Many of the featured phones from Nokia are very smart. Most networks do not support the bandwidth needed for a fully functional smartphone. Only in major urban environments do you have the bandwidth. I live in the Boston suburbs and have one bar in my town. A smartphone is absolutely useless unless I'm close enough to my wifi or the highways. If that is the case 10 miles from Boston, what about 10 miles outside New Delhi .