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July 12, 2010
Edited: July 12, 2010
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estimate that every 1% share shift from feature phones to Android-based smartphones translates to six cents in EPS upside," Jankowski wrote To investor's chagrin, Qualcomm has thus far been left out of the iPhone parade, but Android could begin to help Qualcomm investors forget about the Apple (AAPL) phone. According to a recent report from market research firm comScore, Android was the only smartphone platform to gain market share between March and May.
With a 13% market share in the U.S., Android is gaining on Apple, whose iOS mobile operating system has a 24% share, according to comScore. In this week's Barron's, Mark Veverka fleshed out the bullish case for Google's Android system (see Technology Trader, "How a Droid Could Eat Apple's Lunch," July 10).
WITH ALL THE BUZZ SURROUNDING smartphones and faster wireless speeds, Qualcomm (ticker: QCOM) stock should, in theory, be at or near the top of any technology portfolio.
Thanks to a wide-ranging portfolio of patents, Qualcomm gets a royalty for every 3G phone sold worldwide. The company also makes the chips that run a large portion of the world's wireless devices. The licensing fees have helped Qualcomm build an impressive balance sheet and put the company in a strong position to benefit from the growing demand for wireless data.
Yet, Qualcomm shares keep getting left behind. Barrons.com endorsed the stock in March (See Weekday Trader, "Qualcomm Could Ring Up Nice Gains," March 17) and shares saw a nice spring boost. But after hitting $43 in April, shares have fallen 19%, once again making the chip maker eminently affordable.
My personal views are for 7% upside in next 7 days
Please do your home work.
