Not so long ago, telephones were connected to wires. What a quaint idea. How would today's teenagers survive? Back then you could only talk on your phone — no text messaging. Even worse, phones didn't even have buttons to push! You dialed by turning a big knob with your finger.
Phone companies were regulated monopolies for decades — mostly the regional "Bell" companies owned by American Telephone & Telegraph. The ticker symbol was a simple "T" just as it is now. When your broker recommended "Telephone," you knew he meant AT&T.
Reliable dividends made T the classic "widows and orphans" stock.
This is not so anymore. Telecom today is a witches' brew of old-guard phone companies and speculative technology names. Yet you can still get involved with just one trade — if you pick the right ETF. Today we'll look at the choices and see which may be right for you.
Telecom: Forgotten Sector?
Sector-oriented investing was still fairly unusual as recently as the mid-1990s. Select Sector SPDRs were the first to let ETF investors Unbundle the Stock Market by industry. Even then, telecom stocks were recognized as a distinct sector. Yet the index methodology of the time forced SPDR to combine Technology and Telecom into one ETF: SPDR S&P Technology (XLK).
XLK has done well over the years. Unfortunately, by shoving Telecom to the back of the drawer, the early ETF pioneers also put it "out of mind" for millions of investors. Today you have more choices (including some from SPDR), but many ETF investors still overlook the telecom sector. The combined size of all telecom ETFs is less than $2 billion.
This is regrettable because, depending how they are constructed, Telecom ETFs can help two groups of investors:
- Income investors who love price stability and high yield and …
- Growth investors who want fast-growing businesses.
What does this mean? Not every telecom stock is equal. Here in the U.S., the phone market is more or less saturated. Everyone has a mobile phone. The only exceptions are young children and the very elderly. Landline usage is plunging.
The U.S. phone business has come full circle. AT&T and Verizon (VZ) don't have a legal monopoly like their predecessors, but they do have a practical monopoly. Their huge infrastructure investments (cell towers, etc) act as a barrier to competition. While new developments like smartphones and tablets have an impact, U.S. telecom is regaining its utility-like characteristics: Slow growth but consistent dividends. Ditto for phone companies throughout the developed world.
Yet some telecom stocks still have huge growth potential. In emerging markets like China and India, hundreds of millions of people still don't have their own communications device. The possibilities are even greater in frontier markets. Plenty of remote regions still lack phone service.
Telecom Income vs Telecom Growth
Where does this lead us? Here is my conclusion:
- Telecom ETFs covering the U.S. and other developed countries are more income-driven.
- Telecom ETFs that own companies from emerging and frontier markets are more volatile and have higher growth potential.
Of course, I'm generalizing here. Every rule has exceptions. As a practical matter, many telecom ETFs offer a mixture of growth and income. If you're looking to add some moderate-risk telecom exposure to your ETF portfolio, you can focus on a handful of U.S. domestic sector ETFs such as:
- iShares Dow Jones U.S. Telecommunications (IYZ)
- Vanguard Telecommunications (VOX)
- SPDR S&P Telecom (XTL)
- Focus Morningstar Communications Services (FCQ)
A second ETF group holds both U.S. and international telecom stocks. Your choices include …
- iShares S&P Global Telecommunications (IXP)
- First Trust NASDAQ CEA Smartphone Index Fund (FONE) — this ETF has only about a third of its assets in telecom stocks
The third group omits the U.S. and holds only non-U.S. telecom stocks. Some examples from this category are …
- SPDR S&P International Telecommunications (IST)
- EGShares Telecommunications GEMS (TGEM)
- iShares MSCI ACWI ex US Telecommunications Services (AXTE)
TGEM is particularly interesting because it specializes in emerging market telecom stocks. IST and AXTE have some as well, but they also include European and Japanese telecom stocks. Another caution: Some of these ETFs are small and potentially illiquid. Always use a limit order when buying or selling ETFs.
Is Telecom for you? Maybe so. Do your research and find out if any of these ETFs fit your goals.
Disclosure: Long VOX. No positions in any of the companies or ETF sponsors mentioned.
iPhone 5 Rumor Update - Musicrooms.net
After rumors of processor problems and Japan&Backplates seen here in the usual two-tone format we’ve all grown accustomed to. rsquo;s tsunami put a hold on Apple’s production capacity, the usual announcement at the June Macworld event yielded little results for eager reporters, and even less for the hungry consumers waiting just outside the gates of the Moscone Center in San Francisco.
So with all the disappointment and drawbacks, what can we expect from the iPhone this year? With a backplate leak being reported by 9to5Mac earlier this May, it’s clear that the company from Cupertino is finally comfortable upping the screen size of their flagship device, and from the measurements it looks to be taking their standard 3.5 inch diagonal screen up to 4.0 inches, creating a two-tiered App Store that Steve Jobs had openly feared with both the 4 and 4S releases.
Backplates seen here in the usual two-tone format we’ve all grown accustomed to.
The backplates have been the main source for all the speculation to follow, showcasing larger speaker grills (suggesting more beefy power packed behind them), a hole for what looks to be an LED flash, and an all-metal back that takes after the iPad in its unibody construction.
Outside of what we’ve seen so far, the release of the next device could show up sometime around mid to late October, and you can bet that musicroom.net will be keeping our ears to the ground for any news until then.
Samsung now taking registrations for developer day at IFA 2012 in Berlin - Android Central
IFA 2012 in Berlin is just over a month away, and we know for sure that Samsung will be there. Over on their developer portal, registrations have opened up to a developer day the Korean manufacturer will be throwing at the event.
Scheduled to take place on Thursday August 30 from 14:00 - 18:00, interested developers are urged to sign up quickly as places are limited. Invitations to those selected will then be sent out on August 1.
No session details have been posted as yet, but developers are promised the chance to "meet the latest technology from Samsung platforms" and to "learn about Samsung's latest devices and services" complete with demonstrations. Make of that what you will, but rumor-mongers will surely try and link a vague statement such as this to the fervent rumors of a new Galaxy Note making an appearence in Germany. Whatever we see though, we'll be on the ground in Berlin next month to bring you it all.
Source: Samsung Developers
Apple iPhone 5 vs Samsung Galaxy S3: Can iPhone beat S3? - nvonews.com
Many people are waiting for next generation iPhone. But industry watchers doubt if Apple iPhone 5 will be able to beat Samsung Galaxy S3
Samsung Galaxy S III is hogging the limelight since its launch in UK. Now almost all parts of the world including United States have seen its launch. Reception in the market so far has been more than enthusiastic. The Korean tech giant has claimed that it expects to ship around ten million handsets before the end of the current month.
To be true, right now there is no true competitor against Samsung Galaxy S III. But within a few months it is going to face the toughest competition when Apple launches its next generation smartphone being called iPhone 5. Latest reports suggest that Apple is set to unveil its best smartphone as early as August 7. Though exact release date is still to be announced, there is no reason not to believe Wired report.
There is a whole lot of difference between Apple and Samsung. Both are fighting a multipronged war that is becoming more and more intense with every passing day. Apple depends more on a single smartphone while Samsung has multiple smartphones in its kitty. Though right now Galaxy S3 is selling like the hottest cake in the market, there are several great Samsung phones both high, medium and low end smartphones that too chip in to Samsung coffers. Galaxy Note phablet is another hot selling Samsung phone that has its fans in almost all parts of the world. With 5.3 inch screen and great specs, this phablet attracts whoever gets it in his or her name.
At the moment, as far as smartphone market is concerned, this Apple-Samsung war seems to be going Samsung way. Smartphones are the real deal in this battle – overall shipments are up, close to 43 percent year-over-year. Apple and Samsung together accounted for all the growth in smartphones, overtaking all other vendors – HTC, Research in Motion, and finally Nokia.
To be true, the Korean behemoth Samsung currently sells more than 13 smartphones – screen size ranging from 2.8 inches to 5.3 inches. Apple, on the other hand, sells a very limited number of smartphones, with screen size of 3.5-inch on its iPhones. But things are going to get much better in the case of next gen iPhone.
Rumors have been appearing about the specs of iPhone 5, ever since the launch of the current version iPhone 4S. There are a number of rumors regarding the design of the new iPhone, but all of them revolve around the same point: the iPhone 5 will sport a new design, probably something different enough to differentiate it from the two previous versions of the iPhone (4 and 4S). Many reports appearing in Apple Insider, MacRumors and even in Wall Street Journal have suggested that iPhone 5 will be bigger and thinner – probably around 8mm thick – while some say it will be as thick as the 4S, but will sport a larger battery. But so far things are not really very clear.
Samsung seems to be a winner right now. Many reviewers even with known Apple leanings have advised smartphone enthusiasts not to wait for iPhone 5, if they have to go out and buy a smartphone. When compared to the latest Android smartphones from Samsung, the Apple iPhone 4S looks like its predecessors and lacks LTE. Though the iPhone 4S is still going strong, the recently launched Galaxy S III could put Apple in a tight spot. Currently, the HTC One X is the only competitor of the flagship model from Samsung. Going by the market trends, HTC won’t be able to keep pace with Samsung. HTC had a tough quarter in the United States.
In the meantime, size of the smartphone has become an important criteria in choosing an smartphone. Apple has rather focussed on the quality of the displays, aiming at developing iconic products that have universal appeal. But the market seems to have moved rather fast than Apple had expected. Samsung’s speed has quadrupled with the sluggishness of thinkers at Apple. But this time around, Apple will be forced to come with bigger display, otherwise Apple will become another Research in Motion. In the midst of success in the smartphone market, RIM failed to realise that things have changed, when Apple launched the iPhone. Within a few years’ time it is certainly out of the smartphone market.
Shortlink:
iPhone 5 'already in production,' says Japan-based blog - CNET News
iPhone 5 mockup.
(Credit: Overdrive Design)Production of the next iPhone has already begun, a Japanese-language Apple blog claims.
And to back up its claim, the Macotakara blog cites listings for iPhone 5 cases on China's Alibaba.com.
The blog goes on to say that the back of the new iPhone has both glass and aluminum. "In the area where aluminum is not used, there is glass." (see image below).
This contrasts with previous reports that claim the next iPhone will have an all-aluminum back like the iPad.
Macotakara image showing back of iPhone 5.
(Credit: Macotakara)By comparison, the iPhone 4S sports glass coverings on the front and back.
The iPhone 5's most anticipated feature -- which has been widely reported -- is a larger 4-inch class Retina display with a 16:9 aspect ratio. Previous iPhones have had a 3.5-inch display with a 3:2 aspect ratio.
Oh, if you're interested in preordering an iPhone 5 Chinese resellers on Taobao (a unit of Alibaba) are already accepting orders, according to Reuters. Good luck with that.
Via [AppleInsider]
Alarm for Apple as Russian hacker publishes way to get in-app purchases for FREE - Daily Mail
|
A Russian hacker has discovered an easy way to get in-app purchases on the iPhone and iPad for free.
The process is potentially damaging for Apple's iOS developers whose main revenue comes from the paid upgrades.
Users just have to download security certificates from the hacker's website and change a setting on your device's wi-fi connection.
Workaround: A Russian hacker has found a method that allows iPhone and iPod users to get in-app purchases for free
The hacker, who calls himself ZonD80, also posted a video on YouTube announcing his method and explaining how to do it.
But the clip had been removed today and instead displayed a message saying it was no longer available 'due to a copyright claim by Apple, Inc.'
According to the Huffington Post, the Apple blog 9to5Mac has confirmed that the hack does work on several of its devices which run systems iOS3 to the up-coming iOS6.
A video posted by the hacker on YouTube showing how the process works has been taken down due a 'copyright claim' by Apple
For the time being, Apple will have some respite as Zon80's says his website will be unavailable for 'two or three days' because his servers are down.
The hacker's workaround comes days after it emerged that older versions of Apple's operating system, OS X, was being attacked by Java-based malware.
Apple have been unavailable for comment.
Who cares about Apple? their products are rubbish and have almost no connectivity (except to the Apple Apps store and iTunes...surprise). Get yourself a Samsung, quality product and free from from iJunk. Or a Google pad when available. If not, get an Atari ST, still streets ahead of Apple,a truly awful brand. You cant even get the battery out of an iPad, the cheap piece of trash is GLUED together!
- r d franklin, torquay, 15/7/2012 23:57
Report abuse