The head of Nokia (NYSE: NOK) thinks the Apple (NASDAQ: AAPL) iPhone and RIM (NASDAQ: RIMM) BlackBerry are awesome products. Since his company has 40% of the world market for handsets, that may not be good news. He wants more of the high-end, high-profit part of the industry.
According to Reuters, Nokia President and CEO Olli-Pekka Kallasvuo said "We will exceed the RIM client (BlackBerry) in some months with a very good e-mail system." Coming from anyone else, that claim would be foolhardy. Coming from Nokia, it is a threat. Nokia launched it first touchscreen phone today.
Shares of Apple and RIM already trade near 52-week lows. Within the last week, both stocks hit levels that were 50% off their highs for the last year. Investors are worried that the poor economy will hurt sales for expensive phones and that the fourth quarter, a big selling season, will be weaker than it has been in several years.
If Nokia makes a very aggressive move into smartphones, Apple and RIM shares may not stage big rallies anytime in the near future. Forty percent of the global market is too big a number.
Douglas A. McIntyre is an editor at 247wallst.com.
For a quick-read on the U.S. economy, check the price of gasoline
Closing Bell: What Friday 13th curse? (ANF, BA, GENZ, DIS, PALM, PLA)
Cramer on BloggingStocks: Recognize the ludicrous pattern
Reader Comments (Page 1 of 1)
10-02-2008 @ 1:23PM
Beltway Greg said...
Doug,
Thanks for the laughter today. After all Nokia has rocked the box for an astounding 6% five year gain. What exactly have they been doing for the past half-decade? Look, McDonalds sells how many burgers and none of their restaurants have earned five stars? The same with Nokia products. Now what do you think their CEO was going to say? Hmmm, we've been sitting on our hands for five years and looks as if our stock is going to be relegated to the basement for another five.
Beltway Greg