Apple Inc. (AAPL), Research In Motion Ltd (BBRY), Nokia Corporation (ADR) (NOK): Don’t Pass Up This Tech Deal

Page 1 of 2

Sometimes the markets offer deals. The mobile device market has two key players: Apple Inc. (NASDAQ:AAPL) and Samsung (NASDAQOTH: SSNLF). Oddly, Apple is trading at a discount to Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) based on its price-to-earnings ratio:

Ticker Company P/E P/S P/B P/FCF EPS Growth Next 5 Years
NOK Nokia (NYSE:NOK) NA 0.38 1.36 NA 5.0%
BBRY BlackBerry NA 0.86 0.87 NA 10.0%
AAPL Apple 10.43 2.62 3.39 9.86 19.0%
MSFT Microsoft 15.39 3.22 3.23 11.36 8.4%
GOOG Google 24.42 5.21 3.65 19.59 14.3%

Apple also has healthier earnings growth projections than its more richly-valued peers.

Investors have to ask if there is any reason to jump in with Apple Inc. (NASDAQ:AAPL)’s shakier competitors, Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY) BlackBerry, or if there is any meaningful justification for Apple being priced at such a discount to Microsoft and Google.

Apple Inc. (NASDAQ:AAPL)Apple Inc. (NASDAQ:AAPL) dominates the U.S. market

For the first time, Apple Inc. (NASDAQ:AAPL) passed Samsung as the top mobile-phone manufacturer in the U.S., selling nearly 18 million units during the fourth quarter, or nearly a 38% increase from a year earlier. Apple now has a 34% of the US market, while the South Korean company has a 32% share as it sold nearly 17 million handsets. LG remains a distant third by selling less than 5 million devices, which amounts to a 9% market share.

While Samsung is the global leader in mobile phones by offering less expensive mobile phones based upon Google’s Android OS, the USA has always remained a stronghold for Apple Inc. (NASDAQ:AAPL). The Cupertino, California-based company also had an increase in worldwide shipments of its iPhone by 4% during the fourth quarter, totaling 52 million phones.

The iPhone was introduced back in 2007 and its touchscreen, wide variety of apps and user friendliness quickly turned into Apple’s biggest revenue source. Strategy Analytics analyst Neil Mawstron stated, “Apple’s success has been driven by its popular ecosystem of iPhones and App Store, generous carrier subsidies, and extensive marketing around the new iPhone 5 model.” Since its launch, a new version has been introduced approximately every year, after which the previous model gets a price cut and becomes more accessible to customers that would otherwise look elsewhere for a less expensive alternative.

On the other hand, Samsung offers a more diverse portfolio, ranging from less expensive, more basic phones to larger-screen, top of the line devices. According to analysts, Samsung should regain its top spot in the US during 2013 when new devices are released, such as the Galaxy S4. As well, according to analysts Apple might slow down as concerns from investors remain as to whether Apple CEO Tim Cook can develop and launch new hit products as late Steve Jobs did.

Besides smartphones, tablet computers are the other market in which both Apple and Samsung are the main competitors. Even as Apple was first to the market with the iPad, and still remains in the top spot after the launch of the iPad mini and a fourth-generation iPad, Samsung has toughened the competition by launching several tablets also based on Google’s Android OS. Worldwide tablet sales increased 75% during the fourth quarter, to nearly 53 million devices, with Samsung more than doubling its market share from around 7% to 15%, while Apple’s market share declined from 52% to 44%. On third place is Amazon.com, Inc. (NASDAQ:AMZN), with an increase from 8% to 12%, followed by Asus and Barnes & Noble. The rise in tablet demand came from lower average prices, holiday spending and new products. IDC’s Research Director for Tablets Tom Mainelli stated, “New product launches from the category’s top vendors, as well as new entrant Microsoft, led to a surge in consumer interest and very robust shipment totals during the holiday season.  The record-breaking quarter stands in stark contrast to the PC market, which saw shipments decline.”

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!