Canaccord Genuity: Consumer Electronics Show (CES) 2012 - Wireless Meetings Part I

January 17, 2012 9:20 AM EST
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Canaccord Genuity: Consumer Electronics Show (CES) 2012 - Wireless Meetings Part I

Canaccord analyst, Michael Walkley, met with management at several wireless companies and released the following notes for investors:

APPLE (Nasdaq: AAPL)(BUY): While Apple did not attend CES, its leading market position was evident as competitors introduced new Ultrabook and LTE smartphone products targeted to compete with Apple’s strong product portfolio. . . Despite increasing competition, we believe Apple is well positioned for very strong C2012 sales and earnings growth driven by new product introductions, including the pending refresh of MacBook Air (featuring a new 15-inch model), the iPad 3 launching this spring, the LTE iPhone 5 likely launching by mid-year, and potentially Apple TV exiting C2012.

NOKIA (NYSE: NOK)(HOLD): We are quite impressed with the Lumia 900, Nokia’s first LTE Windows smartphone for the US market. With a larger display than the Lumia 800 and our belief AT&T and Microsoft plan to jointly market the phone, we believe Nokia finally has a competitive smartphone offering for the high-end North American market.

RESEARCH IN MOTION (Nasdaq: RIMM)(HOLD): While we were impressed with the improvements BlackBerry 2.0 offers, we believe it still lags competing tablet offerings but it finally offers features such as native e-mail that we believe the initial Playbook should have offered. . .With competing OEMs continuing to introduce high-end smartphones on more established software ecosystems combined with low-cost Android smartphones pressuring RIM’s international margins, we believe sales and earnings will remain under pressure until BlackBerry 10 smartphones launch in late C2012.

QUALCOMM (Nasdaq: QCOM)(BUY): A common theme from our meetings was new LTE smartphone introductions from leading Android and Windows OEMs using Snapdragon solutions. We believe Qualcomm is well positioned to post strong earnings growth during F2012/13 due to stable royalty rates, strong 3G/4G tablet and smartphone sales, increasing market share for Snapdragon MSMs, accelerating 3G penetration in emerging markets, and expanding QCT margins longer-term.

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