Many smartphone stocks are venturing into new products. New technology is exciting, but investors should be careful not to be swept up in the excitement. Investors should require reasonable valuations before buying stock. Are any intrepid smartphone
stocks trading at attractive price multiples?
BlackBerry launching new models to survive
Research In Motion Ltd (NASDAQ:BBRY)’s new mobile device, the BlackBerry Z10, has been getting a lot of buzz. However, it has not been all good news, given that the company’s security features are now coming under scrutiny. The Canadian government has announced a warning to BlackBerry users to be very careful when sending PIN-to-PIN messages. In a memorandum released by Public Safety Canada, it was indicated that, “Although PIN-to-PIN messages are encrypted, the key used is a global cryptographic ‘key’ that is common to every BlackBerry device all over the world.” This implies that messages sent via this method can be viewed by virtually any BlackBerry user, worldwide. The memo further stated, “Any BlackBerry device can potentially decrypt all PIN-to-PIN messages sent by any other BlackBerry device.”
Other smartphone makers will be seeking to take advantage of this development so as to capture some of BlackBerry’s market share. This includes Samsung, which announced its KNOX gadget has a competitive advantage. This mobile novelty is dubbed the “mobile solution for work and play.” The device deals with mobile security requirements in the corporate setting, and given the increasing popularity of smartphone usage in the business environment, the matter of security is important, especially with sensitive company information being circulated among employees.
According to Samsung, “Samsung KNOX addresses platform security with a comprehensive strategy: hardward baked in Secure Boot, ARM TrustZone based Integrity Measurement Architecture and Kernel with built in Security Enhanced Android Mandatory Access Controls to secure the system.”
Apple Inc. (NASDAQ:AAPL) also has its iPhone, which has been used in business solutions for employers and employees to stay connected. In promoting its product, Apple stated, “iPhone gives you all the tools you need to stay on schedule and get you through the day. Easily manage all your work tasks, connect with colleagues and customers, and stay updated on meetings and agendas.”
New Mobile Device Component Material
Mobile device glass supplier Corning Incorporated (NYSE:GLW) has invented another material. This new product, called Willow, is flexible. According to Corning, Willow glass “will help enable thin, light and cost-efficient applications including today’s slim displays and the smart surfaces of the future. The thinness, strength and flexibility of the glass has the potential to enable displays to be “wrapped” around a device or structure. As well, Corning Willow Glass can be processed at temperatures up to 500 C.” However, full advantage is yet to be taken of this latest development, as companies have yet to manufacture devices that are able to fully utilize the Willow glass.
Google Inc. (NASDAQ:GOOG) also has something new on the table with the possibility of a Google Glass launch in 2014. The company has plans to develop eyeglass-embedded computers, which should give quick and easy access to information displayed above the eyes. According to an article in The Boston Globe, this will “be offered for $1,500 to developers and will ship in early 2013.” The company is also having discussions with a start-up company, Warby Parker, to assist with the design of the eyeglass-embedded computer. According to the New York Times, Warby Parker is an “e-commerce start-up company that sells trendy eyeglasses.”