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In mobile computing era, can Blackberry (RIMM) and Nokia (NOK) keep up with Apple’s (AAPL) and Google’s (GOOG) innovation speed? January 18, 2010

Posted by antibeppegrillo in goog, Google, growth stock, investment, nasdaq, Nasdaq stock, NOK, nokia, Research in Motion, RIMM.
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A BlackBerry, a Google phone Smart phone 'Nexus One' and an IPhoneA BlackBerry vs a Google phone Smart phone ‘Nexus One’ vs a cool IPhone

Facts that (amazingly) do not matter:

  • Google’s Nexus 2 is a phone that sucks
  • Many say that Apple’s IPhone is a phone that sucks
  • Blackberry is a great phone and is great for E-mail, Calendar and typing
  • Nokia sold great cell phones that work perfectly and are cheap to a Billion humans

If it was just cellphones or smartphones I’d:

  • immediately buy a big load of Research in Motion (RIMM) shares that are only priced 13 times forward earnings, 16 times current earnings. Cheap for a company which grew 40% last year and produces the only smartphone suitable for businesses and corporations.
  • or I’d get some shares  of NOKIA (NOK), which is still World market leader, yields 5% dividends, is priced 0.8 times current sales and has Forward P/E supposed to be 13.

Compared to Apple’s and Google’s Forward P/E in the twenties and P/Sales over 5 times, NOK and RIMM look good.

What scares me about RIMM is the fact that we’re moving toward mobile computing. Computing needs even faster innovation than mobile phones or palms or smartphones.

I think Apple and Google will innovate their products at such a speed that they will become great usable tools before everybody else can figure out how to cope with them.

Are Research in Motion and Nokia fast enough to improve their operating systems to keep up with Android and IPhone releases?

Google will innovate toward greater integration of mobile computers with cloud computing and online applications. Apple will innovate taking advantage of the “cool”  factor and leveraging on the strongest community of mobile computer application developers.

I have seen so many companies die in classical computing because they weren’t able to innovate. Google and Apple are the greatest innovators now. After years of honorable service, Microsoft has seen its Windows CE kicked out of the smartphone market in few months.

Will small RIMM resist the innovators thanks to faithful business customers? Can Nokia resist the push of mobile computer companies and at the same time resist the pressure of cheap Asian cell phone makers eager to bite into the low end of the market?

I wrote too much and i still don’t know whether i should or shouldn’t invest my monthly $1000 on RIMM.

I need help from some pitiful reader!

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