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Christopher Grosvenor, CMT
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Chris earned the Chartered Market Technician designation. He is earning the Chartered Financial Analyst designation and graduated with honors in Economics. Also, he has managed money as a professional trader and independently, and continues to do so. Chris utilizes Technical, Financial Analysis... More
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Grosvenor Research & Analysis
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Professional Fundamental & Technical Analysis
  • Android, iPhone, Kindle & BlackBerry 10 0 comments
    May 4, 2012 1:53 PM | about stocks: AAPL, AMZN, GOOG, BBRY

    Tablets

    Apple's (NASDAQ:AAPL) share of the tablet market widened to 68 percent in the first quarter. That is up from 55 percent in the previous three months, according to IDC.

    In contrast, Amazon's (NASDAQ:AMZN) share of the tablet market dropped to about 4 percent from 17 percent. Amazon is now the third largest seller of tablets.

    Samsung Electronics Co. is the second largest seller of tablets. Outside of Samsung, no top-tier manufacturer has developed a great tablet product to take on Apple.

    Total worldwide tablet shipments more than doubled to 17.4 million units last quarter, from 7.9 million units a year earlier. That followed a record-breaking 28.2 million units in the fourth quarter, IDC said.

    The tablet market is starting to grow as consumers find uses for the product. As the tablet market grows Apple and Samsung are well positioned to control almost all of the market; together, both firms are dominating the smartphone market and tablets are like a smartphone with a larger screen.

    There isn't much space for Amazon's Kindle; tablet users have the ability to download the e-reader on almost any tablet or smartphone device.

    BlackBerry10

    BlackBerry maker Research in Motion (RIMM) unveiled a prototype of its new BlackBerry10 device yesterday. The smartphone features a touch-screen. According to some media reports the touch-screen phone won't be popular among consumers.

    BlackBerry users prefer a physical keyboard while iPhone and Android touch-screen smartphones are best of breed.

    BlackBerry has a history of making phones for different types of consumers. A touch-screen phone would appeal to BlackBerry users or non-users that want a touch-screen phone.

    RIM, is counting on the BlackBerry 10 lineup to reverse the sales slump. That is unlikely. RIM may have to live in a new-normal as the world's third largest making of smartphone devices. The faster RIM does that the better off their shareholders will be.

    Personally, in terms of every day business usage the BlackBerry Bold fits my needs better than the iPhone or Android. However, I do have an appreciation for the fact that my needs aren't "mainstream" needs.

    RIM should focus on keeping the customers that it has. As the smartphone market grows, they will have a smaller share of the market. Typically, firms in growth industries can thrive without taking market share and that is what RIM needs to do.

    Most apps developers aren't interested in creating apps for the BB10 operating system. That may make it difficult for RIM to attract new customers.

    Although, the BB10 software which evolved from QNX may help RIM attract customers and then developers. QNX is used to run nuclear power plants and U.S. army tanks.

    Phones running BB10 are due to be released before the holiday season. Also being released around the same time is the iPhone 5. RIM may have a tough time getting its phones noticed if they are released at the same time as the iPhone 5.

    Google's Inc.'s (NASDAQ:GOOG) Android operating system powered 51 percent of US smartphones in the three months ended March 31, ComScore Inc. said recently.

    Apple Inc. ranked second, with 31 percent, followed by RIM, with 12 percent. Google's share in the previous three-month period was 47 percent, according to ComScore.

    We remain bullish on Amazon, Google, Apple, Samsung and RIM.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: quick-picks-lists Stocks: AAPL, AMZN, GOOG, BBRY
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