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
TheStreet Open House

Will Nokia, Microsoft Make Life Tough for Apple in China?

Please don't misconstrue what I am saying here.

I am on record with what is a pretty sensible prediction -- Windows Phone will become a formidable number three to Android and Apple in the mobile market. That will be enough to lift the stock prices of both MSFT and NOK and turn Nokia back into somewhat of a player again. That's why I do not see the coming Windows 8 challenge as "a dichotomous battle between good and evil."

There's more than enough room for several operating systems to co-exist in a world where smartphone adoption runs off of the charts.

Of course, the 0.1% (that represents the proportion of rabid AAPL permabulls who make passionate comments on articles to the overall readership of the article) will call me names like "hack" and worse. They'll claim that nobody reported this story because it's not news. It's a temporary bump for something shiny and new.

Maybe so. But it's worth keeping an eye on.

For Nokia and Microsoft, it's a big deal. While the rest of the world seems to think the recent Lumia launches represent the company's major pushes, they're tantamount to test runs. The real deal comes when Windows 8 smartphones and tablets hit the market later this year. In other words, you really have not seen anything yet.

If the China trend continues, it will not make Windows Phone No. 2 and iPhone No. 3. But, it can likely give NOK a lift and provide AAPL with a ding. If investors sense any bumps in the apparently smooth road Apple and its bulls believe the company faces with Chinese consumers, expect serious downward pressure on the stock, even if Asia-Pacific sales continue to grow by over 100%. The bar is set quite high.

It's this type of news that AAPL bulls, as well as the media that caters to their obsession, choose to ignore. And it's exactly this type of blow-off that could come back to haunt investors when they're least expecting it.

At the time of publication, Rocco Pendola was long MSFT and NOK.

2 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!
AAPL $124.24 0.00%
MSFT $41.21 0.00%
NOK $7.64 0.00%
FB $83.01 0.00%
GOOG $555.17 0.00%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

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