June 18, 2007
Nokia (NOK) And Apple (AAPL) Put Squeeze On Motorola (MOT)
Nokia (NOK) has just introduced three new handsets. They are aimed at the mid-priced level of phones which run $200 to $330. The company already has strength in its product offerings at the low end of the market. It also has a number of handsets at the higher end multimedia level. The company says that, with its new products, it believes it can increases its global share, which now stands at 36%.
Of course, at the ultra-high end of the market, Apple (AAPL) is launching its iPhone with a price tag over $500. Apple says it will only sell 10 million phones in its first year, but that is before it becomes available outside the US.
The move by Nokia puts pressure on its largest rivals which include Samsung, Sony Ericsson, and the No.2 handset company, Motorola (MOT). Motorola's market share has already fallen as sales of it popular RAZR have gone off the cliff. The new RAZR 2 is set to launch, but into a more competitive environment. Nokia almost certain learned a lesson from the sales it lost to the RAZR in 2005.
All of this means that Motorola's share price will stay locked in the basement. It has fallen from almost $27 last October to just over $18, which is near its 52-week low.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about. |
