Research In Motion Ltd (BBRY), Nokia Corporation (ADR) (NOK), Apple Inc. (AAPL) – Smartphones: A Fast Paced Market

Page 1 of 2

The smartphone market has experienced the surge and the decline of several leading companies in the past few years. It is a very competitive market which demands constant innovation and is sensitive to customer’s satisfaction. It is essential to look at how a company is growing. In fact, I just read a good article that describes what to look for when analyzing these kind of businesses. The rise and fall of Research In Motion Ltd (NASDAQ:BBRY), formerly Research In Motion , is a clear example of this: the company had 14.3% of the smartphone market share in the fourth quarter of 2010, then its share declined to 8.2% in the fourth quarter of 2011 to be nowadays driven off the ranking chart.

BlackBerry Ltd (NASDAQ:BBRY)

Will the smaller mobile phone vendors survive?

Research In Motion Ltd (NASDAQ:BBRY) is having a hard time trying to get back to its roots of being one of the leading smartphone manufacturers worldwide. The company hired JPMorgan and RBC to help it review its financial situation and analyze its business model back in 2012, but Research In Motion Ltd (NASDAQ:BBRY) seems to have lost its compass.

The company’s stock price plunged more than 23% from June 24 to present date on its poor last quarter results. Although the firm posted a 9% increase in revenue at $3.1 billion for the first quarter of 2014 compared to the same quarter in 2013, it had a loss from continuing operations of $84 million. Moreover, revenue from the Latin American region dropped 6% which has rattled investors as that was the bulwark of BlackBerry’s growth in the last quarters.

The company launched new phones to fight for some of the lost pie in the smartphone market, the models Z10 and Q10, and it is trying to regain the lost terrain in the corporate technology segment with its Research In Motion Ltd (NASDAQ:BBRY) enterprise server. As more and more mobile devices are used by employees to manage workload in emails and messaging, there is an opportunity for Research In Motion Ltd (NASDAQ:BBRY) to gain a new revenue stream in the mobile device management sector.

The firm is a definite no for investors, as it will have to solve many issues to get back on the growth track after a series of failures including its PlayBook tablet.

Although Nokia Corporation (ADR) (NYSE:NOK)’s stock price is far from being around its historic high, it has improved more than 75% in the last year. The company ranks second in the mobile phone market after Samsung with 14.8% market share, but does not appear in the smartphone segment ranking. However, the company is facing some pressures regarding its poor performance in the last year. Nokia Corporation (ADR) (NYSE:NOK) posted a 22% decrease in net sales for 2012 compared to 2011 totaling €30.2 billion, and a 93% decline in operating profit that stood at €126 million for the same period of comparison. This was mainly given by a drop in almost all of its categories in its devices & services segment.

Nokia Corporation (ADR) (NYSE:NOK) has been trying to turn the wheel towards growth with Microsoft’s support. Nokia agreed to using Microsoft’s operating system for its mobile devices, but that has not given fruitful profits yet. Some analysts were expecting an imminent acquisition of Nokia Corporation (ADR) (NYSE:NOK) by Microsoft, but this is unclear as the Finnish firm is having trouble turning around its business. But investors should note that according to the Wall Street Journal, Nokia Corporation (ADR) (NYSE:NOK) is the biggest exclusive seller of Windows phones, accounting for 79% of total Windows devices which means the companies depend on each other fiercely. Investors should weigh this acquisition option in if they wish to acquire Nokia shares and risk to a continued meager performance.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!