Oct 27 2009
“Every action has an equal and opposite reaction”
“Every action has an equal and opposite reaction”
Newton’s law of motion is applicable even in stock analysis at times. In today’s world where invention and innovation are being hard-pressed by overly concern executives about bottom-line, I phone seems to be a silver line. A product that challenges the target customers of internet device and mobile phone has swept the buyers off by its feet lately.
As a financial analyst one would find “Apple” to be impeccable under this current scenario. But when scaled down to microscopic view, where AT&T is the sole service partner one tends to look forward for a blip in the communication industry.
Investors would find AT&T very enticing, however at the same time one has to keep an eye on its competitors say for example Verizon which is more likely to feel the brunt due to the clobbering of I phone. Also it jeopardizes other industries manufacturing GPS and portable DVD players. So some may be now skeptical about Garmin and other companies that solely depend upon the products clubbed into I phone. But fierce competition would bring up novel ideas that would ultimately benefit the customer. Now all that an investor got to do is to just bank on the momentum produced by such innovations and industry demand.
-Sophia S Antonysamy
