NFC stocks: Is it no NFC in the iPhone 4S hitting Apples stock price?Feature
Posted by Seth PlanckOctober 04th, 2011 at 8:01 PM Filed Under Latest News
Is no NFC and no LTE in the iPhone 4S hitting Apple’s stock price? Or was Apple’s stock artificially inflated by NFC stocks?
Apple stocks took a tumble today which may have partially been because the iPhone 4S is without NFC
A lot of people were disappointed with the iPhone 4S, and we can speculate that just from what we have seen happening out on the social networks. We can also speculate that people who are interested in NFC stocks may have quietly been buying Apple stock over the last few weeks and then dumped it on the news that Apple has not included NFC in the iPhone 4S. As far as investors were concerned, it was Tim Cook’s debut today and for the new CEO to inspire confidence in investors, he needed to show that the company could deliver a forward thinking product that probably incorporated NFC and LTE. However, Cook spent far less time on stage than Steve Jobs would have and Apple delivered a somewhat lack luster device after a three month lag in their standard release schedule.
NFC stocks are a hot topic for investors at the moment and if Apple has announced that the iPhone 4S would feature NFC it would have been natural to think that Apple would have pressed that advantage and would have delivered an NFC mobile wallet that would have added the massive NFC payment recurring revenue to Apple’s bottom line.
Apple stocks tumbled, Google and Microsoft’s stocks climbed, NFC stocks?
Both Microsoft and Google are involved in the smartphone business and both of the companies have openly supported or indicated that they will support NFC in products. Google has the Google Wallet, and we have heard on good authority from our industry sources close to the matter that Microsoft is putting the finishing touches on their own NFC mobile wallet product. Now that Apple has launched the iPhone 4S and it is sans NFC there will be very little chance that the company will be able to incorporate NFC into the iPhone 4S, so we will wait for the iPhone 5. However Apple’s position within the market may not wait for the iPhone 5 and NFC while Android superphones continue to support NFC and while Microsoft gets even closer to releasing its own NFC wallet. If you are looking which companies to buy NFC stocks in, today Apple officially put itself off your list. Interestingly, both Google and Microsoft’s stock price raised on the strength of Apple’s iPhone 4S announcement.
Does Apple’s stock price represent consumers willingness to buy the iPhone 4S without NFC?
Stock prices react quickly to industry announcements and very often over react, as we saw with Apple’s stock today bounce back a little as the iPhone 4S without NFC news settle in. However, Apple’s stock didn’t fully regain what it lost today and when we last looked, it was sitting 2% down on where it was yesterday. We wrote a post the other day that included 11 reasons why you shouldn’t buy a phone that doesn’t have NFC. We saw a quote on Twitter today from a consumer that said “Apple just went from great to good” and that about sums up the feelings we have seen from consumers. But will consumers act in accordance with NFC stocks or even in line with Apple’s stock price? Probably not.
Although many consumers will be disappointed that NFC and LTE were not included in the iPhone, we feel sure many will still purchase the latest and greatest iPhone 4S. The fact that Apple didn’t include NFC doesn’t mean that the iPhone 4S won’t have NFC, but it will now come from third parties who will supply consumers with NFC SIM cards and performance will be adequate. We say adequate because the iPhone 4S wasn’t designed for NFC. The SIM wasn’t placed in a particularly near field communication friendly place because the iPhone 4S wasn’t designed for NFC. Even if the iPhone 4S does get NFC, we now know that Apple won’t be the ones profiting from the technology.
Other reasons Apple’s share price fell today outside of NFC stocks and NFC investment theories could be that there was no mobile network operator announcements. Many had predicted that Sprint would join AT&T and Verizon wireless. This could still be true but there was no announcement at the iPhone 4S launch event and there is nothing about it on Apple’s website now. Rumors have been circulating that Sprint would get a six month exclusivity deal on the iPhone 5, which failed to materialize. This would have certainly upset Verizon and this could be why no announcement was made today. Other than the lack of near field communication and LTE in the device, we think the fact that Apple didn’t mention what processor the iPhone 4S was running other than to say it was a dual-core which probably means the iPhone 4S doesn’t have a processor clock speed that can match the latest crop of Android phones.
If you are looking for NFC stocks avoid Apple this year
The danger for Apple is that it may have lost the opportunity to rule NFC as it could of if it had announced an NFC payments platform with the iPhone 4S. Apple will probably do well with NFC next year, but next year it will be just another competitor instead of being top dog as it was in smartphones for so long. Google are in the market now with Google Wallet and so are a safe bet, but there are other smaller companies seeking NFC investors which could represent a better opportunity for NFC stocks.