There still may be a trade left despite the unrelenting coverage and analysis of Apple’s (AAPL) iPhone. Tim Seymour thinks he’s found it in Nokia (NOK), the world’s largest maker of handsets. Nokia is 50% ahead of Motorola (MOT) in emerging markets and owns 36% of the global market share. As an industry leader, and also attractive on a multiple basis, Tim thinks Nokia could benefit from the iPhone release with its own competitor, the n95 model – what he calls the “Rolls Royce” of cell phones. However, the n95 doesn’t yet have a U.S. carrier and also retails for around $800. Once it becomes available in the U.S., though, Guy Adami expects the stock to rip.
But the high price may not be that much of a deterrent.
The iPhone, which will have two versions that will retail for $499 and $599, is going to move the world into a higher echelon of cell phones where people will be willing to pay a premium for a truly “smart” smartphone, Tim says. If there’s a sea change in what consumers are willing to pay for cell phones, Research in Motion (RIMM) could benefit as well, Eric Bolling says, as people don’t mind paying a little extra for the service.
A rising tide lifts all boats, as they say, and the iPhone could indeed create opportunity for competitors from Nokia to RIM.
Trader disclosure: On June 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Bolling Owns (BP), (ICE), (NMX), (T), Natural Gas; Is Short (FXI), Owns (FXI) Puts; Najarian Owns (MS), Owned (MS) on 6/13; Seymour Owns (AAPL), (BP), Gazprom, (RDS.B), (SBUX), Uranium; Red Star Asset Management Is Short (EEM), Owns Gazprom, Lukoil, Rosneft, Is Short (XOM), (EEM); Gazprom and Lukoil Are On Pink Sheets in U.S. But Trade on Exchange in London CNBC is a service of NBC Universal and Dow Jones _______________________________________________________
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