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

AT&T Deal Could Shake Up the Apple/Google Duopoly

NEW YORK ( TheStreet) -- Unlike BlackBerry (BBRY), Nokia (NOK) and Microsoft (MSFT) refuse to succumb to the seemingly unstoppable market dominance of Apple (AAPL) and Google's (GOOG) Android platform.

In fact, the Nokia-Microsoft partnership appears to be thriving. AT&T (T - Get Report) announced an exclusive carrier deal for the upcoming Lumia 1520. The 1520 is the largest Windows phone yet, with a six-inch display.

For AT&T investors, the Lumia 1520 may result in much greater profits than you may instinctively assume.

A larger display almost assuredly means greater data consumption compared to other phones. Larger displays also attract business and power users. For users with a larger screen, many applications that only made sense on a tablet or laptop will now work great on a phone. Lumia 1520 users probably won't need to buy a seven-inch Kindle Fire from Amazon (AMZN).
[Read: <a target="blank" data-add-tracking="true" href=""><em>Carl Icahn Halves Netflix Stake Citing 457% Gain</em></a>]

The Kindle isn't a profit center for Amazon, reportedly, so I don't anticipate a profusion of pressure on Amazon even if the Lumia 1520 cuts into sales. However, for Apple and Google, it's an entirely different story.

A Microsoft-powered Lumia featuring a seven-inch screen not only competes against the iPhone but may create increased margin pressure on the iPad. The same holds true for Android powered "super-sized" phones and phablets like the Galaxy Note series.

Unlike the Galaxy Note, the Lumia 1520 already speaks the language of business because it's running Windows natively. The combination has the potential to reach critical mass while making room for other Microsoft phones to follow along.

T EPS Basic Quarterly Chart T EPS Basic Quarterly data by YCharts

AT&T is at the epicenter and stands to capture market share in ways unseen since the end of the exclusive iPhone marriage. That's a bold statement about a phone, especially after my plethora of BlackBerry 10 articles describing why one phone doesn't matter. The difference is that this is but one of many game-changing phones coming from Nokia.

Regardless if you're reading this article from your office or from home, if you're on a desktop it's probably a Windows or an Apple machine, leaving Google as the odd man out. It's a short bridge for AT&T wireless reps to sell an existing Windows user a large-screen Windows phone compared to the Galaxy Notes-running Android.
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
T $38.82 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs