RealMoney Silver - Quick Hits: TXN, NOK, RFMD, AAPL, SNCR, S

Quick Hits: TXN, NOK, RFMD, AAPL, SNCR, S
By Chris Versace
RealMoney Contributor
12/12/2007 3:18 PM EST

RF Micro Devices

Earlier this week, Texas Instruments (TXN) held its midquarter update and surprised investors with a better-than-expected outlook for its wireless business in the quarter as compared with comments the company made when it reported its September quarter results. Per its update, TXN now sees its October and November strength continuing into December.

This news is obviously good for mobile devices and for Nokia (NOK) in particular, seeing as Nokia is TXN's largest mobile device customer.

And a key supplier to Nokia stands to benefit from the TXN news (as well as from recent positive mobile data points): RF Micro Devices (RFMD) , a company I have been bullish for the last few months. In fact, I believe RFMD can be considered the best derivative play on Nokia shares, because despite RFMD's improved customer diversification over the last few years, Nokia remains RFMD's largest customer.

Sentiment on RFMD appears lukewarm at best. Despite a recent upbeat analyst day and TXN's bullish wireless comments earlier this week, RFMD shares are just holding steady. Therein lies the trade.

Apple and Synchronoss Technologies

Aside from growing speculation on what Apple (AAPL) will unveil in January, data points keep getting better for Apple in general and specifically for the iPhone. Case in point: SAP (SAP) , the world's biggest maker of business management software, announced that its new software for salesforce automation (hailed as one of the most user-friendly products to date) will be compatible with the iPhone.

What's key about this is that SAP is breaking precedent by introducing versions of the new software that are compatible with the iPhone ahead of those for the main enterprise-focused devices such as Research In Motion's (RIMM) BlackBerry, Palm's (PALM) Treo and devices that run on software from Microsoft (MSFT) .

And what is good for iPhone volume is good for Synchronoss Technologies (SNCR) . Aside from solid Apple iPhone data points and the growing thought that Apple could introduce two new iPhones in 2008, SNCR announced a new relationship with Sprint Nextel (S) Tuesday. Per the announcement, SNCR's order-management services will be used by Sprint for its consumer wireless business.

I know Sprint keeps talking about customer service as a key issue for them; for me, it remains the devices and coverage. At least SNCR stands to benefit, and this should generate even more confidence in 2008's 28% EPS growth from 2007 levels currently forecast by the Street.

But With Sprint in Mind...

Tuesday Sprint shared plans to launch its XOHM WiMax network by the end of this week in Chicago and Baltimore-Washington, D.C. On its face it would seem to be on track, but here it comes:

This initial launch will be limited only to Sprint employees and will focus on the central downtown areas of the test cities.

Sprint says it will expand the coverage to areas that see high demand for wireless data.

Does that sound like a well thought-out plan? Sounds more like they're biding their time until the new CEO arrives and a new strategy is formulated. Watch out.