Can The iPhone 5 Save Sprint?
Sprint (S) is the least attractive asset for a long-term investment among the major wireless carriers. I believe current shareholders and interested investors should consider Sprint as a short-term investment, a short sell or short squeeze while hedging interests in one of the two major telecoms with more promising outlooks or one of the device manufacturers available at a comparable price. Sprint is more than a year behind its peers in developing its LTE network, as more devices are transitioning into making 4G standard issue. Sprint is also losing customers during its slow Nextel divestment to establish LTE while adding customers at a slower rate than its peers. Sprint’s lopsided portfolio focused on wireless has virtually no wireline services compared to the two major carriers.
Sprint’s main competitors are the major US telecoms, AT&T (T) and Verizon (VZ). It’s also worthwhile to consider the metrics of device manufacturers like Nokia (NOK) and Research in Motion (RIMM). Both these devices manufactures have similar stock prices to Sprint and are looking for a rebound in the market in 2013, as well. Nokia seems to be the preferred manufacturer for Microsoft’s new Windows mobile OS. Nokia will be available through both AT&T and Verizon while Research in Motion plans to release a new Blackberry in the first quarter of 2013 that will be carried by Verizon. As popular as the Apple (AAPL) iPhone 5 will be, AT&T and Verizon will still have several competitive devices that will carry either the Windows or Android OS. To continue reading, click here.