Sunday, July 8, 2007

"Inside"-er trading - InDepth Analysis of the iPhone

What would you do with a newly purchased iPhone? - make phone calls, listen to music, take pictures, ... etc? Probably not so if you are a stock analyst watching out for every single bit of information that might improve your portfolio.

Here's what some guys did with their pricey iPhones - they dismantled it and dug out the names of suppliers of chips and components used in the device. No, they weren't crazy - rather they had a very sound logic in doing so : if the iPhone turns out to be a hit, then these suppliers stand to make good money - and the earlier you invest into one of these suppliers/stocks, the more you benefit!

Here's a list of names they un"earth"ed:

1. Samsung Electronics (NAND flash)
2. Texas Instruments (Power-Management chip)
3. German chip maker Infineon Technologies (communications chips)
4. Skyworks Solutions Inc (Amplifier)
5. Linear Technology Corp (Battery Charger chip)
6. Cambridge Silicon Radio Ltd (Bluetooth Connectivity)

News reports indicate that prices of some of the above stocks have shot up since this discovery. Wonder what this phenomenon can be called? - "Inside"-er trading, shall we? ;-)

For more on this story : http://www.technologyreview.com/Wire/19007/

Edited on 14th July 2007: Wanna see what it looks like inside an iPhone?
Goto
1. http://www.ifixit.com/Guide/iPhone
2. http://thinksecret.com/archives/iphonetakeapart/index2.html

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