Companies from Nokia (NYSE:NOK) to Samsung are trying to create a product to compete with the Apple (NASDAQ:AAPL) iPhone. Now RIM (NASDAQ:RIMM) will join the group.
RIM will come out with a touchscreen version of its Blackberry, probably in the third quarter. The decision is based on a false premise, which is that people want to buy an "iPhone" from someone other than Apple.
According toThe Wall Street Journal "Dubbed the Thunder, the new BlackBerry is among RIM's strongest moves so far to appeal to the increasing number of consumers opting for multimedia phones."
The market has heard this song before. Over a year ago, both Sandisk (NASDAQ:SNDK) and Microsoft (NASDAQ:MSFT) came to market with competition for the iPod. Neither made any progress.
As infantile as the reasoning may seem, Apple built a nearly perfect product, which has been confirmed by strong demand , and plans to improve on it with features like 3G capability. Competition cannot replace what the customer views as irreplaceable.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 newsletter.
SingTel, Singapore's big phone company, and some of its partners will bring the Apple (NASDAQ: AAPL) iPhone to Singapore, India, Australia and the Philippines. While the moves does not get the device into the huge China market, it does go a long way to helping Apple reach its iPhone sales goals and increases the likelihood that the company will have strong earning late this year and into next.
To be successful in these markets, Apple will probably need a 3G version of it smarphone, but word is that the feature will be coming soon.
Despite its success in the US, Apple is at a disadvantage to other Smartphone companies like Nokia (NYSE: NOK) and Samsung, They have been in the Asian markets for years. It is not likely that they will part with that market share easily. Both companies have brought out multi-media and music stores of their own in the hope of competing with iTunes.
Apple probably already has several million unit sales in these markets locked up. The iPhone, in its unlock version, is already used on networks in Asia. The Apple brand is strong in the region because of the iPod.
The iPhone still has a chance to be Apple's most successful product, at least financially. Every big country where the iPhone is offered by a major carrier brings the company closer to that goal.
Research In Motion (NASDAQ:RIMM) can't afford to lose any market share to the Apple (NASDAQ: AAPL) iPhone. Apple has other businesses. RIM has only smartphones.
So as not to be bested RIM has a new BlackBerry. According toThe Wall Street Journal, the device, called Bold, "runs on high-speed 3G wireless networks that carriers are rolling out to handle media-rich features." It also has multi-media features for downloading music.
The launch misses a critical factor in business smartphone devices. Enterprise users probably have little interest in BlackBerry beyond its e-mail features. The fact that the phone runs on faster 3G networks added to the function. Putting multi-media features into the product does not. It simply adds cost. The 3G capability will also help sales outside the US where 3G is more widely deployed.
RIM has a problem. While it is not likely the BlackBerry will ever become a music player, the new 3G iPhone may well attract business users with better e-mail, calendar, and web-searching features. The iPhone also sell well because it is consider "next-generation" with its touch pad. It also benefits from the "halo" effect from the company's iPod and iTunes products.
Apple can add e-mail to the iPhone and have a device that can cut across business and consumer users. It is not clear that BlackBerry can ever get beyond its core enterprise market.
History is repeating itself. After facing generic competition in the United States to its second-biggest product in 2006, Sanofi-Aventis is now dealing with a similar threat in Europe. Competition concerns came after Switzerland's Schweizerhall Holding AG announced it would launch a copy of the Plavix blood thinner that could be bought for a lower price. Schweizerhall said it expects German regulators to approve its generic version of Plavix, called clopidogrel.
Sanofi-Aventis's fears about generic competition are justified as the company had to fight against a similar situation less than a year ago. Back in 2006, Bristol-Myers Squibb Co. (NYSE: BMY), which develops the product with Sanofi, saw a big plunge in its sales after Canadian generics company Apotex Inc. launched a cut-price copy of the drug.
One of the messages out of the Google (NASDAQ:GOOG) shareholder meeting was that management plans to make more money on huge video-sharing site YouTube. Without going into detail, the search company said it would bring out sets of software tools which would make it easier for marketers to use the site more effectively.
According toReuters, Eric Schmidt, the company's CEO "said getting the video sharing site to make money is the Web search company's top priority for the year." It is a nice promise, but it is hard to see how it will work.
Unlike new video sites including Hulu, a premium content web destination used by the large media companies to showcase their video, most of the YouTube content is posted by the ordinary citizen. The clips are primarily short and of poor quality. For some time, one of the most popular videos on YouTube was "The Farting Preacher." That may not be the kind of content big marketers find appropriate to use to draw new customers.
YouTube's problem is not its size. It is the largest video site in the world, based on visitors. But, it is also a website based on a community of people who see its as a place to homestead with the own content. Advertisers may never be comfortable with that.
Microsoft (NASDAQ: MSFT) can't sell any Zunes, so it has come up with a plan so that it will continue to do badly in the business. According toThe Wall Street Journal, Redmond"is introducing a new technology that will let users of its Zune portable devices legally share portions of their song libraries with other Zune users." To take full advantage of the new product users will have to buy a $14.99 a month service called Microsoft's Zune Pass.
None of that is going to help get share from the Apple (NASDAQ: AAPL) iPod. Not only is it the largest music download service in the US, the iPod has almost 80% of the market. Zune owners can't share music with other Zune owners because there are so few of them. Perhaps Microsoft could start a "Zune-user location service" and charge money to help people find the two or three other Zune customers in their town.
There have been hopes that the Zune would do for Microsoft in the portable music device business what the Xbox did for it in gaming. But, Apple's footprint is too large and it is adding services, like video downloads and rentals, too quickly.
Microsoft should stick to trying to buy Yahoo! (NASDAQ: YHOO).
Mobile TV is just getting launched in some parts of Europe and the US. AT&T (NYSE: T) will kick off its new offering in the US later this week. According toThe New York Times, "Mobile operators across Europe and the United States are investing in new broadcasting towers, mobile devices, and television programming and promotions, even though it is not yet clear that profit will follow."
Just how many devices are people going to use to view video? There is the TV, powered by the Unbox, cable, telecom fiber, AppleTV (NASDAQ: AAPL) and digital recording devices. TV users can also get satellite TV. All of this costs a lot. Are people going to add another $25 a month for broadcasts to their cellphones?
People just walking around town can use their iPods or iPhones.
The PC is now a good place to watch movies. On a typical airline flight or train ride dozens of people are plugged into their computers watching the Scottish defeat the English in Brave Heart.
Cell TV has two problems. It is late to the video device game meaning it faces huge competition. And who wants to watch movies or the news on a one-inch square screen? The battle scenes are very hard to make out.
Since last year's summer movie preview featured mostly sequels and adaptations, this year's preview has been expanded to include more than just potential "blockbusters." The following is a chronological list of not only the most hyped film fare of the summer, but other noteworthy smaller entries, and a short commentary on each.
5/2 - Iron Man, Viacom (NYSE: VIA)'s Paramount Pictures The first of two big Marvel Entertainment (NYSE: MVL) adaptations of the summer, the Robert Downey Jr. led Iron Man has been getting a ton of hype and critical acclaim. This is the second year that a comic book adaptation has kicked off the summer, following last year's Spider-Man 3, which grossed over $150M over its opening weekend.
5/9 - Speed Racer, Time Warner (NYSE: TWX)'s Warner Bros. Another big-budget adaptation of a generations-old cartoon. Last year's Transformers was, to my surprise, a huge success, so maybe Speed Racer, in the capable directing hands of the Wachowskis, can be as well.
Mother's Day has finally gotten out of hand and may now be more commercial than Christmas. Wal-Mart (NYSE: WMT) has decided to promote the Nintendo Wii Fit as a better thing to give mom than flowers. It is certainly more expensive.
According toReuters, "the Walmart.com homepage will be dominated by the Wii Fit -- a physical exercise program that uses a pressure-sensing board as a controller -- including a link to order the product now, ahead of its May 19 U.S. launch."
The world's largest retailer hopes the promotion will bring store and online traffic during a tough economic period. Even with a recession here or coming, video games are still selling well.
The question is, even with a good market for game consoles, is this something that mom wants on her big day? Flowers and clothing may have done well over the years because women actually like them.
But sonny boy can go online and get that Wii Fit for himself and call the florist at the last minute. It is Mother's Day.
Video is available on a number of small devices including the Apple (NASDAQ: AAPL) iPod and several Verizon (NYSE: VZ) phones. Verizon even offers mobile TV.
AT&T (NYSE: T) doesn't want to miss out on the opportunity. It will launch its own mobile TV product. According toThe Wall Street Journal, "The service, which will be available in 58 markets, including most big cities, will offer programs from several major TV networks, including CBS, Comedy Central, NBC and Fox." As the paper points out, the phones set up to carry TV are expensive and the service costs $15 a month.
Video is not doing too well on phones and other portable devices. The reasons are clear, even if the people at the phone companies do not want to hear them. Video is hard to watch on a one-inch square screen. Viewers may be able to hear the dialog but a video of "The Matrix" can't look good without the picture detail.
The other reason that cellular TV is unlikely to work is that cellular service in the US is still fairly poor. Dropped calls are a part of the life of the cellular phone consumer.
It is one thing to lose a call and have to redial. It is another to drop a signal in the middle of your favorite program. The cellular companies are just going to make people mad.
Starbucks (NASDAQ: SBUX) plans to come out with new premium drinks this summer. One will be a fruit smoothie and another a sugar-based drink created by a company in Italy. According toThe Wall Street Journal, "Starbucks says they're the first stage of a broader push into healthier drink and food offerings."
The new products are not likely to help the coffee retailer much. Smoothies and Italian ice drinks are available at a large number of shops, even Baskin Robbins. Starbucks does nothing to differentiate itself by coming to market with products that are easy to come by elsewhere. It is also a move away from its core coffee franchise.
The other issue with the new drinks is that Starbucks stores already sell scores of items. When custom ingredients are put together with the regular drink menu, most stores offer dozens of drinks. The stores also sell ground coffee and coffee makers. Add to that donuts, muffins and other food. Starbucks will also sell anyone who comes through the door music and DVDs.
Stocks futures were lower early Wednesday morning as investors awaited not only a rate decision from the Federal Reserve this afternoon but several key economic indicators and lots of corporate earnings too.
U.S. stock markets ended mostly lower on Tuesday. While the Dow Jones Industrial Average ended down 39 points, or 0.31%, the S&P 500 ended 5 points lower, or 0.39%. Only the heavily tech weighted Nasdaq Composite rose 1.7 points, or 0.07% due to a lift from upbeat earnings from Corning.
Today, investors will focus their attention on different items throughout the day as they await the Fed decision coming at 2:15 p.m. EDT when the Fed releases its policy statement. Most expect the Federal Reserve to cut key rates by a quarter point to 2%, but to hint at a pause in the cuts.
Before the bell, Wall Street will also look at earnings from heavyweights such as General Motors, Procter & Gamble and Time Warner. PG and TWX already reported results.
Procter & Gamble (NYSE: PG) reported that first-quarter profit rose 8% o $2.71 billion, or 82 cents per share as cost control and price increases helped offset higher commodity costs. Revenue rose 9% to $20.46 billion. Analysts predicted profit of 81 cents per share on revenue of $20.43 billion.
Time Warner Inc. (NYSE: TWX)'s first-quarter profits fell 36% following an asset sale a year ago, and the company also said it will spin off the rest of its cable business. Excluding one-time effects, per-share results were 22 cents per share, a penny below analyst estimates and in line with a year ago. Revenues rose 2% to $11.42 billion from $11.18 billion.
Blockbuster (NYSE: BBI) must want to own a piece of everything. First, it made a bid for Circuit City (NYSE: CC) and now it is trying to get a piece of the new pay TV channel being launched by Viacom (NYSE: VIA).
Viacom says it will start a TV network with movies and other video content with contributions from MGM and Lions Gate (NYSE: LGF). The channel will compete with HBO and Showtime.
According toThe Wall Street Journal, "As part of a deal being discussed, Blockbuster would get digital rights to the new channel's programming in return for an investment in the partnership."
How that makes sense is a mystery. The Viacom channel can sell DVDs though a number of outlets. Streaming content over the internet does not require help from Blockbuster. How does a company with rental stores and a DVD-by-Internet operation help a pay TV channel which will be distributed by satellite and cable?
Blockbuster has problems of its own. For starters, it just needs to stay in business. Its stock trades at $2.98, near a 52-week low, and down from more than $20 less than five years ago. Putting capital into new ventures or nutty M&A transactions is a waste of shareholder money.
Kirk Kerkorian's Tracinda Corp. is planning to offer $8.50 per share for up to 20 million shares of Ford Motor Co. (NYSE: F), a 13.3% premium over Friday's close. Tracinda now owns 100 million Ford shares, or 4.7% of the outstanding stock, which would increase to 5.6% when the offer is completed. Ford shares climbed over 6.5% in premarket trading. The deal, announced recently, is helping stock futures' upward movement.
Verizon Communications Inc. (NYSE: VZ) reported a 9.8% rise in its first-quarter earnings as its wireless division attracted more customers than other carriers. Excluding items, earnings were 61 cents per shares, inline with estimates. Revenue rose 5.5% to $23.8 billion, also inline with estimates. VZ shares are up 1.9% in premarket trading.
According to The New York Post, Barry Diller and Liberty Media (NASDAQ: LINTA) Chairman John Malone are continuing to talk about "a deal that would trade one or more of IAC Interactive (NASDAQ: IACI)'s assets for Liberty's ownership stake in IAC." Diller is also "expected to meet with his board this week to restart the process of breaking up his company into five separate pieces."
After over four years and billions of dollars in losses, Microsoft (NASDAQ: MSFT)'s game division has finally started to make money. Although Wall Street was disappointed with some of the software company's numbers for Windows and Office, the firm's "entertainment and device" division made $89 million on $1.58 billion in revenue. In the same quarter last year, the operation lost $324 million on $936 million in revenue.
According to the company, "Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and Tools revenue growth of 18% added to its string of consecutive double-digit revenue." The Xbox has finally arrived.
The news shows that Microsoft is willing to spend massive amounts of money to enter a business and stick to it. When the Xbox was launched, Sony (NYSE: SNE) ruled the game business and there was no reason to think that Microsoft could do well. Gaming could not take advantage of Microsoft's core strengths in PC and server software. The move was an attempt at diversification.
After all the years of battling, the Xbox 360 now outsells Sony's PS3 in most months. If the software company could only make money on MSN.
Douglas A. McIntyre is an editor at 247wallst.com.
Shares of French drug maker 
One of the messages out of the 
Mother's Day has finally gotten out of hand and may now be more commercial than Christmas. 
Stocks futures were lower early Wednesday morning as investors awaited not only a rate decision from the Federal Reserve this afternoon but several key economic indicators and lots of corporate earnings too. 
Blockbuster
After over four years and billions of dollars in losses, 
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