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  1.    #1  
    RBC Capital is out with a call on Smartphones:

    - Apple (NASDAQ: AAPL) tgt is raised to $250 from $190

    - Research in Motion (NASDAQ: RIMM) tgt is raised to $150 from $100

    - Palm (NASAQ: PALM) tgt is raised to $25 from $18.

    All three are rated Outperform.

    RBC Capital believes smartphones represent the next wave of computing, and are truly “3C” devices – embodying the convergence of communication, computing, and content. In the report, they size the smartphone market, which we view as large, nascent, and underpenetrated. They also forecast the vendor landscape; predicting vertically integrated “challengers”, like Apple, RIM, Palm, and possibly others, will take significant market share from some incumbent cellphone, PC, and consumer electronics vendors. Others that, in their view, are positioned to benefit include: 1) carriers that “get it”; 2) smartphone suppliers/partners; and, 3) emerging/transplanted web, software, content, and media businesses.

    Smartphone Market: Huge, Nascent, and Underpenetrated. RBC is raising their smartphone forecast due to: 1) the expected global shift by millions upgrading to smartphones for email, browsing, applications, and content; 2) smartphones’ potential to take market share, not only from voice and/SMS cellphones, but also from PCs, TVs, consumer electronics, and Internet markets – collectively representing over 2 billion users. They are raising their smartphone penetration forecast to 35.1% of global handsets or 504 million units (395 million prior) by calendar 2012. Additional revenue upside may come from new services (carriage fees, advertising, subscriptions, transactions, etc.) and revenues shifting from traditional media (TV, newspapers, web, etc.).

    Data is Hard: Challengers to Dominate. Due to important differences from the PC, cellphone, and Internet markets, iconic smartphones are difficult to make, distribute, sell, and support. Thus, the firm predicts a select group of challengers will dominate the smartphone market, given their deep vertical integration (e.g., software/ hardware/ service ownership) and “special sauce” through which they create unique, iconic smartphone experiences – i.e., making complexity simple. They believe successful challengers may double or triple their revenues by 2012.

    Some Incumbents to Face Challenges. RBC believes some incumbent cellphone/PC/consumer electronics companies (e.g., Nokia, Motorola, Dell, HP, Sony, Sony Ericsson, and LG) will face challenges and lose market share competing in the smartphone space – held back by technology, cannibalization, and organizational, customer, and shareholder barriers. These issues are not insurmountable; other incumbents may successfully evolve and compete.

    Firm is raising their price targets on RIM from $100 to $150, on Apple from $190 to $250, and on Palm from $18 to $25, justified by increased market shares which, as visibility improves to the huge smartphone opportunity, offer upside to financials and potential multiple expansion.


    'Come on pal, tell me something I don't know, it's my birthday. Surprise me.'

    - Gordon Gekko, Wall Street

    So RBC has discovered the Smartphone segment is hot and growing. Good for them! The firm has spend potentially hundreds of thousands of dollars (and god knows how many working hrs) to come up with a 92 pg. analysis stating among things that PALM is worth $25 per share.

    I believe the price targets on all 3 mentioned names are the new Street high targets. So expect some buy interest. Especially in PALM. Lol.

    Full article is here: - Smartphones:The New World Order - RBC Capital (AAPL, RIMM, PALM)
  2. rayln's Avatar
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    while it'd be nice to peruse the full 90+ page analysis, I definitely would pay more heed to RBC than a bunch of hokey analysts.
  3. #3  
    expectations for palm are high and things are looking good for them.
    o and yea andriod looks like its gonna have some problems im suprised it was not mentioned, o well i guess webos took that spot!
  4. rayln's Avatar
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    now that you mention it, it is strange android wasn't included.
    perhaps because it isn't a proprietary os?

    still, you'd think they would have given an advisory on manufacturers who ship their products with winmo or android (i.e. HTC).
  5.    #5  
    Quote Originally Posted by Young HoV 718 View Post
    expectations for palm are high and things are looking good for them.
    o and yea andriod looks like its gonna have some problems im suprised it was not mentioned, o well i guess webos took that spot!
    Know why? Here's why (and I'm being sorta sarcastic here):

    I have a Palm Pre and a HTC MyTouch. This is what I found out that pissed me off the other day: HTC Magic (aka "MyTouch") in Europe and US have 192mb of ram while Asian countries get the Magic that has 288mb of ram. It dawned on me that that is why the movements on my MyTouch (stupid name by the way) is so choppy. If I have more than 2 apps running at once, forget it!

    So yea...almost 100 mb of ram LESS than the Asian counterparts. Why? Dunno. Then yesterday, I read that the HTC Sense UI that is on the HTC Hero is being released for the HTC Magic. "Great", I thought but wait...apparently cause I have the logo "Google" on the back of my US Magic, it will not get the upgrade due to some licensing issue.

    Ok...fine. I'll just root my android phone and put the Sense UI in there myself since it's technically the same phone. But wait...because it has 100 mb of ram LESS than the Asian counterparts, it will run SLOW as hell to the point where it would be almost impossible to use.

    So yea...I'm screwed on this one. Now the HTC Hero is gonna get a firmware upgrade in 10 days which they speculate will make it faster while I'm stuck with this politically red-taped HTC MyTouch phone.

    And folks...THAT'S why Android will fail (not really). But if they keep pulling this BS, they are gonna have some pissed off customers.

    Now come to find out the G1 won't be able to receive any more major OS upgrade cause the ROM is already full from the last one (1.5 "Cupcake"). And it was released less than 10 months ago! Yea...Apple pulls that "Oh...we just put a compass in the 3GS" crap but at least the original iPhone and iPhone 3G can upgrade to a 3.0 OS.

    Dear Google - fix this!

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