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Time to hang up on the mobile-phone industry

Over the past two years, the shares of mobile-phone companies have rallied sharply, both in absolute terms and relative to the S&P 500 index.

Since September 2005, the Dow Jones U.S. Telecommunications Sector -- which has an equivalent exchange-traded fund, the iShares Dow Jones U.S. Telecommunications Sector Index Fund (NYSE: IYZ) -- has gained 40%, outpacing the broad market by more than 21 percentage points.

Despite all the euphoria, a number of recent developments suggest the bullish tide is turning and the sector could be in for a rough ride in the weeks and months ahead.

Consider the following:

Growing competition. Last Friday, BloggingStocks' Douglas McIntyre noted that "an all out price war" brewing in Japan could be a sign of things to come in a saturated U.S. market.

Continue reading Time to hang up on the mobile-phone industry

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IndexesChangePrice
DJIA+65.9212,867.15
NASDAQ0.002,903.88
S&P 500+9.191,351.83

Last updated: February 13, 2012: 09:44 AM

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