As the World Developers Conference continues in California, speculation continues over a number of Apple products. On Monday the new MacBook Pro line was released, much to the excitement of Apple fans. However, there is another device that is gaining as much if not more attention; the iPhone 5.
Although an iPhone 5 release date has not been officially mentioned at the WWDC 2012, analysts have jumped upon a clues from the conference to estimate its release.
Apple unveiled its iOS 6 to developers on Monday. The company has not confirmed when it will be made available to the public, however, but September has been touted as the expected time for its full release. This information immediately sparked rumors about the next generation iPhone - the iPhone 5. The new smartphone is expected to launch on the new generation operating system, and so most have jumped to the conclusion that a release date will take place at around that same time.
Other features for the iPhone 5 have also been touted in light of the new details surrounding the iOS 6. The new operating system will boast new 3D imaging technology on its new Apple custom made Map app – essentially making Google maps defunct on the iPhone.
Many iPhone fans are eagerly anticipating huge advancements in Siri, although details of specifics are sketchy at this stage.
If rumors prove correct then the iPhone 5 will feature a new A6 chip, as well as 2GB Ram, and a super 8 megapixel camera. It also believed improvements will be made to the battery life of the smartphone and that HD video will be available.
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The screen size may be increased to compete more on par with many high end Android smartphones currently on the market; current estimates put the iPhone at 4 inch, as opposed to the current 3.5 inch model.
As reported, the iPhone 5 has not been featured at the WWDC 2012, however, the smartphone has been expected to release later this year for a long time. It now seems that with the iOS 6 launch on the horizon that the iPhone 5 release date will follow in the fall.
Why Samsung really could be buying Nokia - NASDAQ
Nokia Corporation ( NOK , quote ) jumped almost 7% on Friday on heavy volume after a Reuters report that South Korea's Samsung ( SSNLF , quote ) might be making an offer for the Finnish-based communications giant.
The report had more than its share of detractors. Commented Ben Wood of CSS Insight, "This is Friday madness. I can't think of a rational reason why Samsung would want to buy Nokia at present." Even with that dour assessment of Nokia's worth to Samsung, the stock rose 14.39% last week.
There is appeal to Nokia for Samsung or another buyer that can be found in both tangible and intangible factors. The mere fact that Microsoft ( MSFT , quote ) is partnering with Nokia on a number of ventures is a bullish indicator.
Weight must also be given to Nokia's position as the second biggest seller of mobile phones in the world. Until recently, it was at the top. Who supplanted Nokia? Samsung.
Nokia has not been negligent in turning out new products, although they have been bedeviled. The Lumia 900 introduction went poorly in early April. That caused a hit to Nokia's share price.
But Nokia has pumped out a series of Lumia and S-40 mobile phones, which offer a wide variety of entry points in the global marketplace. While Samsung is now challenging Apple in the United States, Nokia is very strong in emerging markets.
Nokia's presence could assist Samsung in acquiring users who do not commit to two-year contracts, the new hot market niche. T-Mobile is very actively pursuing this business segment. Owned by Deutsche Telecom ( DTEGY , quote ), T-Mobile is pursuing these customers with pre-paid data options for the week and the month. With its emerging market strength and new low-end S-40 models, Nokia could be a formidable competitor for these customers.
The balance sheet and income statement of Nokia has some appealing financials for a buyer. The debt-to-equity ratio is under 0.50. The price-to-book ratio is 0.83 and the price-to-sales ratio is 0.26. There is $3.29 cash-per-share on the books so there is enough funds to pay for the purchase. The dividend can also be ended to buttress cash flow after an acquisition. Earnings-per-share are projected to increase by 134.80% for the next year.
Nokia sells more mobile phones than any company in the world other than Samsung, is strong in new products, has an established presence in the emerging market nations where the most growth will be in the future , is valued cheaply for both assets and sales, and has enough cash to make an acquisition very inexpensive in terms of capital outlays for the buyer.
In addition, Samsung just borrowed money very, very cheaply in a bond offering, so it has plenty of cash for an acqusition. Samsung's interest could be just a rumor, but there is some merit behind the surge in Nokia's price for the day and week.
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