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Underwhelming Wearables and Smartphone Slowdown Raise Questions About Growth in Technology
GoPro may buck macro weakness within the consumer electronics landscape.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I'm back on duty following a too-short vacation in Las Vegas, and there's no shortage of tech topics worth tackling.

News reports indicate that production of Apple's (NASDAQ:AAPL) iWatch has been delayed from September to November.

Let's not get ahead of ourselves here: There is no official indication that this product even exists. Remember, in 2012, there were regular reports that an Apple television set was set to go into production, and it just never happened.

There's also no pressing need to rush in to plant a flag.

Google's (NASDAQ:GOOG) Android Wear platform, which powers new smartwatches like the Samsung (OTCMKTS:SSNLF) Gear Live and LG G Watch, doesn't appear ready for prime time just yet.

There are still basic issues like battery life, public acceptance of wearables, perceived complexity, and notification management that could just as easily hobble Apple.

Advanced wearables are not going mass market, which would be fine if it weren't for the smartphone/tablet slowdown. The consumer electronics industry really needs some new growth drivers.

On Tuesday, Samsung issued very weak second-quarter guidance, driven by weak smartphone tablet shipment. This should not be a surprise to anyone. Samsung's CFO had already telegraphed lousy results [Buzz & Banter subscription required], and there have been plenty of other indicators of mobile weakness.

For example, Best Buy (NYSE:BBY) had a tough Q1 [Buzz & Banter subscription required] due to softness in mobile phones, and IDC said that tablets grew by just 3.9% in Q1 [Buzz & Banter subscription required], a huge slowdown from 2013.

So what's going to drive the electronics industry?

Numbers from Gartner and IDC indicate PC sales may be bottoming out, but that's not quite enough. Earnings season is going to be very interesting, particularly for the semiconductor makers tied to mobile, like Qualcomm (NASDAQ:QCOM) and Skyworks (NASDAQ:SWKS).

For now, I'm sticking with just two tech names -- Apple and Nintendo (OTCMKTS:NTDOY), the latter of which is benefiting from renewed optimism in the Wii U console.

GoPro (NASDAQ:GPRO) is a very interesting story and I'm doing more reserach that I'll report in the coming weeks. Contrary to popular belief, it faces very little competition -- its real risk is market saturation.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in AAPL,NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Underwhelming Wearables and Smartphone Slowdown Raise Questions About Growth in Technology
GoPro may buck macro weakness within the consumer electronics landscape.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I'm back on duty following a too-short vacation in Las Vegas, and there's no shortage of tech topics worth tackling.

News reports indicate that production of Apple's (NASDAQ:AAPL) iWatch has been delayed from September to November.

Let's not get ahead of ourselves here: There is no official indication that this product even exists. Remember, in 2012, there were regular reports that an Apple television set was set to go into production, and it just never happened.

There's also no pressing need to rush in to plant a flag.

Google's (NASDAQ:GOOG) Android Wear platform, which powers new smartwatches like the Samsung (OTCMKTS:SSNLF) Gear Live and LG G Watch, doesn't appear ready for prime time just yet.

There are still basic issues like battery life, public acceptance of wearables, perceived complexity, and notification management that could just as easily hobble Apple.

Advanced wearables are not going mass market, which would be fine if it weren't for the smartphone/tablet slowdown. The consumer electronics industry really needs some new growth drivers.

On Tuesday, Samsung issued very weak second-quarter guidance, driven by weak smartphone tablet shipment. This should not be a surprise to anyone. Samsung's CFO had already telegraphed lousy results [Buzz & Banter subscription required], and there have been plenty of other indicators of mobile weakness.

For example, Best Buy (NYSE:BBY) had a tough Q1 [Buzz & Banter subscription required] due to softness in mobile phones, and IDC said that tablets grew by just 3.9% in Q1 [Buzz & Banter subscription required], a huge slowdown from 2013.

So what's going to drive the electronics industry?

Numbers from Gartner and IDC indicate PC sales may be bottoming out, but that's not quite enough. Earnings season is going to be very interesting, particularly for the semiconductor makers tied to mobile, like Qualcomm (NASDAQ:QCOM) and Skyworks (NASDAQ:SWKS).

For now, I'm sticking with just two tech names -- Apple and Nintendo (OTCMKTS:NTDOY), the latter of which is benefiting from renewed optimism in the Wii U console.

GoPro (NASDAQ:GPRO) is a very interesting story and I'm doing more reserach that I'll report in the coming weeks. Contrary to popular belief, it faces very little competition -- its real risk is market saturation.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL,NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Underwhelming Wearables and Smartphone Slowdown Raise Questions About Growth in Technology
GoPro may buck macro weakness within the consumer electronics landscape.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I'm back on duty following a too-short vacation in Las Vegas, and there's no shortage of tech topics worth tackling.

News reports indicate that production of Apple's (NASDAQ:AAPL) iWatch has been delayed from September to November.

Let's not get ahead of ourselves here: There is no official indication that this product even exists. Remember, in 2012, there were regular reports that an Apple television set was set to go into production, and it just never happened.

There's also no pressing need to rush in to plant a flag.

Google's (NASDAQ:GOOG) Android Wear platform, which powers new smartwatches like the Samsung (OTCMKTS:SSNLF) Gear Live and LG G Watch, doesn't appear ready for prime time just yet.

There are still basic issues like battery life, public acceptance of wearables, perceived complexity, and notification management that could just as easily hobble Apple.

Advanced wearables are not going mass market, which would be fine if it weren't for the smartphone/tablet slowdown. The consumer electronics industry really needs some new growth drivers.

On Tuesday, Samsung issued very weak second-quarter guidance, driven by weak smartphone tablet shipment. This should not be a surprise to anyone. Samsung's CFO had already telegraphed lousy results [Buzz & Banter subscription required], and there have been plenty of other indicators of mobile weakness.

For example, Best Buy (NYSE:BBY) had a tough Q1 [Buzz & Banter subscription required] due to softness in mobile phones, and IDC said that tablets grew by just 3.9% in Q1 [Buzz & Banter subscription required], a huge slowdown from 2013.

So what's going to drive the electronics industry?

Numbers from Gartner and IDC indicate PC sales may be bottoming out, but that's not quite enough. Earnings season is going to be very interesting, particularly for the semiconductor makers tied to mobile, like Qualcomm (NASDAQ:QCOM) and Skyworks (NASDAQ:SWKS).

For now, I'm sticking with just two tech names -- Apple and Nintendo (OTCMKTS:NTDOY), the latter of which is benefiting from renewed optimism in the Wii U console.

GoPro (NASDAQ:GPRO) is a very interesting story and I'm doing more reserach that I'll report in the coming weeks. Contrary to popular belief, it faces very little competition -- its real risk is market saturation.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL,NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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