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JPMorgan Smartphone Report ‘Ludicrous’?

Tuesday, 12 Feb 2013 | 1:13 PM ET
JPMorgan Smartphones Report 'Ludicrous': Weiss
AlphaOne Capital Partners CIO Dan Niles and Stephen Weiss of Short Hills Capital take issue with a JPMorgan report that said the smartphone market will peak in 2013.

Don't expect the market for smartphones to peak anytime soon, AlphaOne Capital CIO Dan Niles said Tuesday on CNBC.

On "Fast Money," he responded to a report by JPMorgan titled, "Smartphone adoption peaking in 2013."

"The way you really need to think about this is: Last year, you sold 700 million smartphones, and you sold 1.7 billion totally phones," Niles said. "I don't know how that's peaking. As far as I know, that's below half the market."

Niles added that the other component to the equation was that 80 percent of the market for mobile phones in emerging markets was accounted for, while the penetration rate for smartphones was only 15 percent.

In the United States, he said, roughly 60 percent of mobile users owned smartphones.

Stephen Weiss of Short Hills Capital agreed.

"Don't forget the tablet market," he said. "Qualcomm is out there, I believe, looking for 650 million tablets as we go to 2016. If you look at their presentation, growth is really going strong. Maybe it's not going to be 50, 100, 200 percent, but it's still going to be more than enough strong, and then there's the upgrade cycles."

"That's a ludicrous report by JPMorgan," he added.

Trader disclosure: On Feb. 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Niles has positions in FB; Dan Niles has positions in INTC; Dan Niles has positions in MSFT; Dan Niles has positions in AAPL; Dan Niles has positions in QCOM; Dan Niles has positions in EBAY; Dan Niles has positions in CSCO; Dan Niles has positions in JNPR; Dan Niles has positions in CIEN; Dan Niles has positions in FNSR; Dan Niles has positions in AMZN; Dan Niles has positions in ONNN; Dan Niles has positions in NXPI; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long YHOO CALLS; Pete Najarian is long BBRY; Pete Najarian is long BBRY CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long DELL; Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long QCOM; Stephen Weiss is long TBF; Mike Murphy is long AAPL; Mike Murphy is long GS; Mike Murphy is long FB.

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