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The new iPhone's quick downloading capabilities will benefit video game vendors whose libraries can be readily adapted to the technology, said David Garrity, director of research at Dinosaur Securities.
Investors should look to the obvious gaming companies such as Electronic Arts [ERTS
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] and Nintendo [NTDOY
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], but they should also turn toward China, which has a larger demographic of cellphone gamers than the U.S., Garrity said.
One good pick is Perfect World [PWRD
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], a Chinese company that trades on the Nasdaq, he said.
But Garrity thinks the real trade lies with Nokia's N81 phone, which has not yet been released. The phone will have a "Comes with Music" feature, which offers Nokia users three of the four major music labels' full libraries for one year when they buy a handset, he said.
Nokia, which has 40 percent of the whole market, also has more of a global reach than Apple [AAPL
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], Garrity said.
"Apple has to consider what Nokia [NOK
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] brings to bear into the extent that Nokia has the scale in the global handset market," he said. "If we look globally, I wouldn't count Nokia out."
Disclosures
Disclosure information was not immediately available for Garrity or his company.
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