Apple (
AAPL
) continues to generate a lot of positive news, which resulted in
its stock gaining around 7% in the last week. Speculation about the
upcoming iPhone 5 specifications and the likely Sprint (
S
) iPhone deal got stronger during the week. Additionally, the
news that raw material prices have improved is a big positive for
Apple as it will help it to improve its
profitability. Research in Motion's (
RIMM
) was volatile this week as a Comscore report indicated lost market
share in the mobile phone OS market during the February to May 2011
period. However, RIM was one of the winners of the Nortel
Apple
Apple has reportedly placed orders for 15 million iPhone 5s to
Pegatron and is set to start shipping them this September. Major
news on the iPhone has always been a trigger for Apple's stock as
the iPhone accounts for more than 50% of
our $430 price estimate for Apple stock
.
Additionally, an iPhone Sprint deal is going could be another
catalyst for Apple's stock as Apple then gets access to around 45
million Spring subscribers. The report that mobile devices' raw
material prices have improved is a big positive for Apple's
profitability as before Apple had to sacrifice margins in order to
maintain a constant supply of raw material for iPhone and iPad. The
Japan tragedy played a major role in the supply of raw
material.
See our company analysis
RIM
RIM continues to lose market share in the U.S. smartphone market
with its share declining from around 29% in February to around 25%
in May 2011. During this period, Apple overtook RIM for the first
time, which was psychologically another negative blow. See our
notes this week
Comscore Jumps on the RIM Dog Pile
and RIM Looks Oversold but Here's How to Justify it
However, RIM did win about $770 million worth of Nortel's
wireless patents out of a total of $4.5 billion, which should boost
its patent portfolio. Patents have started to play an important
role in the smartphone industry, and is the major reason for so
many lawsuits happening these days. See our note: Google Rivals
Scoop up Nortel Patents in High Stakes IP Tussle
See our company analysis