This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Nokia at the Gates of Dell

Nokia (NOK - Get Report) may finally earn its Wall Street nickname: "the Dell (DELL - Get Report) of mobile phones."

Fans of the world's largest phone maker have long feared that as smartphones become more like computers the manufacturers will succumb to the same forces that laid waste to the PC sector. Dell, Hewlett-Packard (HPQ), Gateway, IBM (IBM - Get Report) all slid into a joyless race to see who could make the most computers at the lowest costs.

Let's just say in a race to the bottom in manufacturing expenses, the U.S. is a bit outmatched. And that was true well even before the success of Asus and Acer and the ultra-cheap netbook market.

The haunting tale of the fallen PC sector comes to mind again this week after Nokia chief Olli-Pekka Kallasvuo told an interviewer on Finnish TV on Thursday that duties of computers and mobile phones are converging. When asked if Nokia was considering adding laptops to its phone business, Kallasvuo said: "We are looking very actively also at this opportunity."

For investors, there is hope that Nokia will be as ridiculously late to the netbook fad as it was with other trends, like folding phones, ultra-thin designs and touchscreens.

A Nokia laptop could easily be a more damaging flop than Palm's (PALM) short-lived Foleo notebook.

If you want a sense of what direction the convergence trends are headed, look at Apple (AAPL - Get Report). The computer maker took a bold sharp turn a few years ago. Resistant to the populist movement toward cheaper laptops, Apple instead made an expensive computer phone. Today, the iPhone is not only the design leader in smartphones, it is Apple's fastest growing product segment at a time when consumer electronics demand has flat-lined.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
AAPL $129.38 0.22%
GRMN $49.70 -1.50%
INTC $34.08 0.06%
IBM $161.03 0.34%


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs