This Day On The Street
Continue to site
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

Cell-Phone Guts Do the Talking

BOSTON ( TheStreet) -- The big cell-phone makers get more media coverage than Tiger Woods' extracurricular activities. Apple (AAPL - Get Report), Research in Motion (RIMM), Palm (PALM) and Motorola (MOT) have cool new phones that are flying off the shelves. But the companies' shares may not be the best way to profit from high-tech devices.

It's easy to forget that the name stamped on the front of a gadget didn't make everything buried beneath the shiny touchscreen. The guts of most phones are an amalgam of chips and circuit boards from smaller companies around the world that are better suited to produce the nuts and bolts of technology than the finished product. Companies like Marvell Technologies (MRVL - Get Report), a supplier of connectivity chips for Research in Motion, and Texas Instruments (TXN - Get Report), which makes the Palm Pre's processor, are examples of the auxiliary beneficiaries of the smart-phone boom. While they may not enjoy the same sort of margins or name recognition that the designers of the phones do, they bolster revenue by landing major smart-phone-chip deals.

The effect of smart-phone sales on those companies is difficult to determine due to the hush-hush nature of the orders demanded by cell-phone companies. Many times, suppliers are identified only when a phone is torn apart by research companies.

Other chip makers, like Qualcomm (QCOM - Get Report) and Samsung, which is the envy of many since it supplies Apple with chips for the iPhone, are attractive derivative bets on the smart-phone market, but a broader type of technology probably offers greater opportunities for growth due to its universal applications.
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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.70 0.00%
JBL $18.62 0.00%
MFLX $20.58 0.00%
MRVL $8.41 0.00%
QCOM $43.00 0.00%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs