updated 10:05 am EDT, Tue June 10, 2008
Nokia Down After iPhone 3G
Nokia shares are no longer recommended after the launch of the iPhone 3G, analysts at American Technology Research said late yesterday. Experts at the financial group dropped their valuation for Nokia from Buy to Neutral in the belief that a raft of "third-generation smart-phone introductions" due for the second half of 2008 and early 2009 are liable to hurt Nokia without clear signs that it can match the same pace. The smartphone industry is increasingly competitive and puts added pressure on the Finnish company, which leads the world smartphone market.
"While [its] valuation is attractive and sentiment low, we do not recommend new money until we get a competitive response from Nokia," AmTech says.
In addition to the impending release of the Apple handset, RIM will improve its own standing in the market with the BlackBerry Bold and potentially the Thunder. HTC in turn is overhauling its touchscreen line with the Touch Diamond and Touch Pro.
Nokia has already said it plans to bolster its line with the N96 media phone as well as two Eseries phones that all compete in similar categories, but has raised concerns over its unusually high pricing for the confirmed N96. The phone will cost about $800 before taxes or carrier discounts and may sit outside the reach of more customers; no US plans have been announced, though the N95 is sold strictly as a full-price unlocked model. The iPhone, Bold, and Touch phones will be priced at or below $300 for a subsidized version.