Shares of Apple (AAPL) are down $6, or 1%, at $561.89, on mixed views from the Street this morning. On the negative side, Citigroup’s Glen Yeung, who has a Neutral rating on the shares, writing “our most recent work suggests Apple may have modestly lowered production forecasts for 1Q14.” He’s not changing estimates, and he actually raises his price target to $580 from $530, but “we nonetheless suspect downward pressure on Apple shares is likely in 1Q14.”
And Tavis McCourt with Raymond James, surveying a variety of U.S. sales outlets, as well as global data from research firm Kantar, writes, Apple’s smartphone share “has seen its typical seasonal uptick with the iPhone 5S launch across the world, but y/y share trends, though strong in the U.S., remain underwhelming for Apple globally.”
On the plus side, Cantor Fitzgerald’s Brian White, reiterating a Buy rating on Apple, and a $777 price target, writes that his “Apple Barometer,” a basket of Taiwan suppliers he tracks, are showing year-over-year sales growth in November “the strongest in the Barometer’s history,” up about 19% to 20%, above the 6% rise on average for the last 8 years of the indicator.
And Evercore’s Rob Cihra thinks the reported deal between Apple and China Mobile (CHL) may net an additional 5 million to 10 million iPhone sales in calendar ’14, which adds upwards of $1.70 to Apple’s EPS. That should offset March-quarter “seasonality,” he thinks.
Shares of Intel (INTC) are higher by 69 cents, or 3%, at $24.95, following two upgrades this morning, one from Citigroup’s Yeung, who raises his rating to Buy from Neutral, with a $28 target, and one from Drexel Hamilton’s Rick Whittington, who raises the stock to Buy from Hold, and raises his target to $30 from $26. Both analysts see “stabilizing” PC demand and low expectations as a benefit in 2014. “While consumer PC demand, particularly in emerging markets, remains a source of weakness, we believe Intel’s guidance for 2014 is sufficiently conservative to minimize downside and even leave room for upside,” writes Yeung.Shares of Nokia (NOK) are up 15 cents, or 2%, at $7.88, after J.P. Morgan’s Sandeesh Deshpande reinstated coverage of the stock with an Overweight rating and a $10.80 price target. Also on the positive side, Berenberg Equity Research’s Adnaan Ahmad reiterates a Buy rating on the ordinary shares, and raises his price target €8.40 from €5.80, writing that “Nokia’s royalty rate should gradually inflate to 0.75% over time as it renegotiates existing deals and aggressively monetises its IPR pool.”
“Assuming that global handset revenues settle at around $300bn, this equates to up to $2.25bn (€1.9bn) in annual IPR revenues.” Finisar (FNSR) stock is up 49 cents, or 2.3%, at $22.25, after the company yesterday afternoon beat fiscal Q2 expectations and forecast this quarter higher as well. There have been no ratings changes so far, that I can see, but price targets are rising, even among the bears.
Jefferies & Co.’s James Kisner, who has a Hold rating on the stock, raises his price target to $24 from $22, writing that the replacement of copper wiring with optics is “powerful tailwind” for the company.”
“We continue to have concerns about price disruption from silicon photonics and vertical integration from Cisco [Systems (CSCO)],” he writes, “but we think the bulk of this risk lies in 2015.”
Deshpande comments, Qualcomm sells over 700 million
of these chips every year and once this case precedent has been set, Nokia can use it to claim royalties on that IP from many other infringing companies. The results of the key Samsung arbitration re additional payments will be known in early 2015 as well which should be a catalyst.
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JPMorgan reinstates Nokia Corp (NYSE: NOK) at Overweight and price target of €8 ($10.80).
Analyst Sandeep Deshpande noted the substantial potential Nokia has to monetize its patent portfolio. He thinks that if Nokia were able to take in 1 percent royalty per device, the firm's price target would easily move to €15.
Deshpande commented, Nokia has a broad patent portfolio (ex NSN) of ~10k patent families comprising ~30k patents. Only ~10% of the patents are externally licensed & Nokia has built a large trove of implementation patents which are linked to its essential patents.
There is two key ways Nokia can fully monetize its patents:
Getting better terms on new licensing deals given that Nokia has a stronger share of LTE patents versus 3G; and
Broader licensing and enforcement of non-essential patents.
There might also be opportunity for Nokia in unraveling cross-licensing agreements. Say Nokia licensed certain IP to Apple and doesn't need that access any more, it would be able to sell that patent in whole.
Nokia also recent won an injunction against handset maker HTC. Deshpande sees two points in this segment:
Qualcomm's (Nasdaq: QCOM) LTE chips contain Nokia IP; and
While Qualcomm is a licensee, the right does not pass through to its customers. HTC would need to obtain its own license with Nokia.
Deshpande comments, Qualcomm sells over 700 million
Analysts are weighing in today on professional networking site LinkedIn Corp (NYSE:LNKD), telecom concern Nokia Corporation (ADR) (NYSE:NOK), and tech issue Intel Corporation (NASDAQ:INTC). Here's a quick roundup of today's bullish brokerage notes.
LNKD -- which has nearly doubled in value so far this year to trade at $226.44 -- was upgraded to "outperform" from "market perform" at BMO this morning, where analysts also lifted their price target for the stock to $270 from $235. Despite the equity's technical prowess, skepticism continues to grow toward LinkedIn Corp. Short interest spiked by 21.2% during the last two reporting periods, and now accounts for a healthy 4.2% of the security's available float. With around 4.3 million shares currently sold short -- the most since mid-May -- LNKD could end up benefiting from future short-covering activity.
J.P. Morgan Securities resumed coverage of NOK with an "overweight" endorsement and a price target of $10.80, which could help add to the security's 2013 gain of roughly 96%. Still, sentiment among the brokerage bunch remains bearishly skewed toward Nokia Corporation (ADR). Only three out of 19 covering analysts have handed out "buy" or better ratings, and the stock's average 12-month price target of $7.06 denotes a discount to yesterday's closing price of $7.73. This leaves plenty of room for a round of upgrades and/or price-target hikes, which could serve as contrarian tailwinds for NOK.
Up more than 20% year-over-year to wink at the $24.26 level, INTC was raised to "buy" from "neutral" at Citigroup ahead of the opening bell. Meanwhile, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 50-day call/put volume ratio of 2.34 for Intel Corporation, confirming calls bought to open have more than doubled puts during the past 10 weeks. This ratio is just 1 percentage point shy of a 12-month peak, signaling traders have been snapping up calls over puts at a near-annual-high clip.
Lets see Apple sells avg phone for 600.00 Nokia phones sell for 100.00 article meaningless.
Is this the sae Bernstein? August 20, 2013, 10:16 A.M. ET
Nokia May Be Heading For ‘Disastrous Q3,” Says Bernstein
By Teresa Rivas
Shares of Nokia (NOK) were recently down about 1.3%, and the likely culprit is Sanford Bernstein’s Pierre Ferragu, who has a downbeat note out about the phone maker.
This morning, Ferragu writes that his thesis, that the company’s smartphone wasn’t connecting with consumers, seems to be playing out, which has dire implications for the company’s upcoming September quarter.
From the note:
At the start of the year, our view was that Microsoft (MSFT) Windows Phones were not meeting any consumer traction and that Nokia’s smartphone shipments would peak again in 2Q13. All signs point to this scenario playing out at the moment. Windows 7 shipments will no longer contribute to sales going forward and Windows 8 ASP and margins have declined 26% and 5 points respectively since the launch at the end of last year. The most striking data points are for marginal ASPs for Windows Phone. We define marginal ASP as incremental sales divided by incremental volumes, which is the money Nokia makes per incremental phone they sell. It has declined sharply from over €250 in the launch quarter to €80 last quarter. In other words, the only reason Nokia managed to sell 7m units last quarter was through an accelerated race towards the low end, compensating for already negative momentum in the high end.
So where does all this lead? Potentially to a “disastrous” third quarter. He notes that the company’s decision to rely on its high end models, the Lumia 928, 925, and 1020, to maintain its momentum is a risky proposition: high end smartphones are slowing overall, competition is intense, and, as the above analysis shows, Windows has had limited traction in the high end.
Ferragu maintained his Underperform rating on Nokia, with a price target of €1.50.
Last week, Fitch Ratings also noted Nokia’s struggles with Lumia sales. August
Nokia Siemens Networks has achieved TD-LTE* data speeds of 1.3 Gbps using its commercial Flexi base station hardware**. The live demonstration at a recent China Information Technology show in Beijing*** marks a new world record for the 4G mobile broadband technology. In addition, Nokia Siemens Networks is the first vendor to complete Phase 1 and 2 of China Mobile’s (CMCC) TD-LTE field tests and leads the industry with its TD-LTE key performance indicators (KPIs)****.
“Our record-breaking mobile broadband speeds, coupled with the successful completion of CMCC’s TD-LTE field tests, clearly underline Nokia Siemens Networks’ commitment to strengthen the TD-LTE ecosystem in China,” said Markus Borchert, president at Nokia Siemens Networks Greater China. “As the world’s specialist in mobile broadband, we will continue to drive TD-LTE innovations and commercial deployments across the globe.”
Nokia Siemens Networks provides full life-cycle services for TD-LTE, delivered both locally and remotely by a team of global experts. The services include technical consulting, network design, planning and deployment, systems integration, optimization, maintenance and a complete managed services approach.
To share your thoughts on the topic, join the discussion on Twitter using #TD-LTE and #mobilebroadband.
About Nokia Siemens Networks Nokia Siemens Networks is the world’s specialist in mobile broadband. From the first ever call on GSM, to the first call on LTE, we operate at the forefront of each generation of mobile technology. Our global experts invent the new capabilities our customers need in their networks. We provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services to make it all work seamlessly.
With headquarters in Espoo, Finland, we operate in over 150 countries and had net sales of over 14 billion euros in 2011.
Cannot compete with junk.Amazing how dumb the people are.I talk to a lot of people that own the iphone and they complain but say oh well I am in and I do not want to change.Can I say BRAINWASHED
Nokia could not compete with the iphone this is great news because Nokia moved on to bigger and better things with phenomenal mapping ,4 out of 5 cars use Nokia maps and Nokia Solution and Networks look out for the new Nokia.Long and. strong with plenty of shares under 2.00.Microsoft has the money and the network to market the Nokia phones (A SUPERIOR PHONE) compared to the phone as a result,you will see a huge increase in the purchase of Nokia phones in America.
Nokia is constructing a new future without selling mobile phones. In the future, 90 percent of the company’s revenue will come from Nokia Solutions and Networks, the firm’s mobile infrastructure arm. NSN is now switching from cost-cutting to job creation.90 percent of Nokia's revenue in future will come from Nokia Solutions and Networks, the firm's mobile infrastructure arm. NSN says it is now switching from cost-cutting to job creation. Video: Yle
In the new Nokia, NSN is all-important. It will provide 90 percent of Nokia’s turnover once Microsoft completes the purchase of the firm’s mobile devices unit.
Nokia’s networks business has slashed expenditure and jobs in recent years, but it still employs 49,000 people, including 6,000 in Finland. Now the firm is gearing up for the mobile broadband market, and expects to hire more staff as the competition heats up.
Around 17,000 people were laid off by NSN in 2012 and 2013. Some staff also left the company as parts of the mobile giant were hived off. That process is set to turn around this year.
Tommi Uitto, NSN’s country manager in Finland, says that the company’s payroll has shown a net growth this year--despite the firings.
NSN’s cuts were part of a re-orientation towards wireless networks. Most of the company’s workforce is already involved in research and development work. Maintaining NSN’s position at the forefront of mobile network development could require even more brain power in the future.
"It is possible that we will grow, because we are putting more and more resources into product development for mobile networks, and Finland has a very large role in that," says Uitto.
NSN is a challenger to Sweden’s Ericsson in the mobile network market, but it still has a healthy market share. The competition for 4G market share has only just begun, but firms are already making plans for the fifth generation of mobile broadband.
The company demonstrated that virtualization and cloud-based infrastructure can help combat network congestion
By Mikael Ricknäs | IDG News Service
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Nokia Solutions and Networks (NSN) and Korean operator SK Telecom have demonstrated the potential for virtualizing the core of a mobile network, which will make it easier for operators to roll out new services.
Virtualization and cloud-based services have changed enterprise systems' architecture and management. Mobile operators' desire for the same advantages in their networks has given rise to the concept of NFV (network functions virtualization).
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The goal is to move away from the proprietary and expensive equipment operators use today and instead adopt a more cloud-based infrastructure that allows them to be more flexible and use commodity hardware. That could, in turn, allow operators to cut costs and roll out services faster, according to Nokia, and that should be a boon for users, as well.
Moving to a whole new way of building the networks operators rely on to offer telephony and mobile broadband isn't going to happen overnight. But even if it's still early days, vendors have to show they are current with this idea, according to Sylvain Fabre, research director at Gartner.
Nokia and SK Telecom's joint proof-of-concept focused on virtualizing the so-called Evolved Packet Core (EPC), and they were able to successfully control capacity for both throughput and signaling traffic based on smartphone usage patterns, Nokia said Monday.
SK Telecom is not the only vendor interested in NFV. Last year representatives from 13 operators -- including Verizon, China Mobile and Deutsche Telekom -- came together to write a white paper on the topic.
Because there is great interest from operators, the vendors can't ignore NFV even if a move to a more open network would open the door for new competitors in the network infrastructure sector, according to Fabre.
And we have another so called disgruntled investor.You had a chance to purchase under 2.00 and missed the boat.Better.Good luck to ya