Sea Change: A Wireless World
The future of picture-taking, text messaging and more is approaching faster than you know. The coming Apple iPhone upped the ante and now business leaders are starting to think that maybe just one device can do it all. From complete mobile computing to watching live TV, these are only the first few innings of a digital revolution. As the industry's power brokers converge in Orlando, Florida to discuss what's next, what are the wireless trades that can dial up returns for you now?
Jim Goldman joins the guys from the CTIA Wireless Convention in Orlando.
50,000 people have converged in Orlando and the thing that has everyone excited is full motion video- the technology that allows you to watch television on your cell phone. LG makes one that will retail for $199 and AT&T is introducing a phone where users can stream live video from one phone to the next. That hasn’t been done before, Jim says.
Dylan Ratigan asks with so much potential why does cell phone maker Motorola (MOT) have a $1 billion short-coming.
Tim Strazzini says there are so many players in the field and it’s a race to spend money on R&D. And, Tim says, consumers are fickle.
Jim adds that he’s seeing a massive shift in the industry from "dumb handsets" to new smart phones. The technologies are finally here.
Tim adds this is a great time to be a consumer – but not a shareholder of these companies.
Jim reminds that Bear Stearns estimates Applewill generate $6 billion in revenue during the first year of iPhone’s existence. AAPL will appeal to the high-end consumer.
Eric Bolling says the winners are Apple (AAPL), AT&T (T) and Adobe (ADBE). He explains it’s estimated AAPL will sell 10 million units at $500-$600 each. AT&T will be the carrier and Adobe will handle some of the iPhone’s wireless capabilities.
Jim adds that Verizon (VZ) has a major challenge brewing unless they can strike a deal with another cellphone maker on the same scale as iPhone.
Tim doesn’t see it that way. Verizon has a reputation for being the best wireless service, he says, and although the iPhone will be owned by a lot of rich people – all the other phones users in the nation will need a carrier.
Tim adds the trade is the carriers: Verizon and AT&T which will continue to do well. Tim also recommends investors buy Nortel (NT) for at least another $2 dollars.
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On MAR 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Strazzini Owns (MO), (T), (VZ), (WMT), Owns Puts in (EEM), is Short Puts in (AUY). Bolling Owns (ICE), (NMX), Natural Gas, Gold, Silver, Soybeans is Short Corn. Macke writes for Minyanville.com