The New Leaders in Mobile

Filed in Apple, BP, Debt, Gold, GOld juniors, Google, lead, Motorola, o, revenue, shares, target by on January 18, 2011 0 Comments

Mobile is set for another big year in 2011, but the hierarchy of tech giants is shifting. A year ago, Android was just a promising upstart in the sector. RIMM was barely holding its own, while NOK and PALM/HP were struggling. Motorola was showing signs of life, as it looked like their bet on Android might pay off. Apple, of course, was undisputed king of smart devices. Fast forward to today, and this chart by Millennial Media says it all: They’ve got a ways to go yet, but Google is starting to run away with this one. Wildly profitable Apple shares are up more than 3500% over the last 10 years. As long as we’re cherry-picking dates, from September 1985 until today, AAPL shares notched up 18,885% gains. Mr. Jobs and his team have shown us just how profitable gadgets can be, but the stock’s run is getting long in the tooth. In July of 2010, I proposed Apple is at or near its peak for this cycle. I may have been a little early — I did mention that only a madman would short it — but I stand by the theory. Why? For years, AAPL had the only “fun” smart phone on the market. This is no longer the case. Android is a game-changer. In the long run, increased competition will compress margins and reduce Apple’s piece of the pie (yes, the pie itself is growing larger). No company stays Wall Street’s darling forever. Upside in AAPL…

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The New Leaders in Mobile

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