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Telecom & Wireless

Palm (PALM) Pre Won’t Do Sprint (S) Much Good

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By Douglas A. McIntyre Updated Published
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bearMorgan Stanley does not think that the new Palm (PALM) will do much for Sprint (S). The reasoning is that the carrier will sell about 1.5 million units of the Pre in the first six month after its launch, but 70% of those will be upgrades.

The research arm of the investment bank likes AT&T’s (T) chances with the Apple (AAPL) iPhone. A new version of the handset will probably be out in a month. The iPhone only has 2% of the US cellphone market.

The danger is betting on the iPhone and AT&T is not that they won’t do well. It is that the market already expects them to do well. Even the slightest negative deviation from the market’s “best case” for the new iPhone, which is the case that most investors believe, could push Apple’s shares down significantly and AT&T’s shares down modestly.

Apple’s stock has gained 60% in three months. If the Pre looks like it is on track to sell two million units in the first six months that it is out, or RIM’s (RIMM) results for Blackberry sales beat industry estimates, Apple’s shares won’t hold $140, which is where they trade now.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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