The Smartphone War

More and more people swapping out their old phones for new advanced phones that can check e-mail, text message, send pictures, receive video, etc.  The iPhone from Apple accelerated this process a few years ago.  It’s becoming so popular, Dell has decided to enter this business as well.  Since we’re seeing more players in this space, how will that impact Apple, Inc., the leader?  Recent reports are showing Apple is actually taking market share from other carriers including Research In Motion (RIMM), which is why RIMM fell so much a few weeks ago.

This morning, Nokia (NOK) reported a loss of over $800 million.  They haven’t kept up with the smartphone movement and it’s showing.

I’ ve always been a big fan of pairs trades where you go long one stock and short another.  AMZN vs. BBY is an example that has worked.  Below is a picture of AAPL vs. NOK since 2005.  NOK is flat since that time while AAPL is up 250%.  I think this trend will continue as long keeps taking market share.

aapl vs nok


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