Apple Inc. (AAPL), Facebook Inc (FB), BlackBerry Ltd (BBRY): Three Can’t Miss Quotes for Technology Investors This Earnings Season

So why are teenagers still friending Facebook Inc (NASDAQ:FB)? It’s the network effect. Even with dozens of other options, Facebook Inc (NASDAQ:FB) is probably the only service with all of your friends. That makes for a pretty compelling reason to stay. If true, this development will take out an important pillar from the Facebook bear thesis.

Peak smartphone

Evidence is growing that the best days of the smartphone industry are behind it.

“If you look underneath the iPhone numbers, […] we saw significant growth clearly in the lower price point year-over-year which for us is iPhone 4.” – Apple CEO Tim Cook

While Apple Inc. (NASDAQ:AAPL) sold 31.2 million smartphone devices, consumers are increasingly choosing the company’s low-margin iPhone 4 products rather than the flagship iPhone 5 model. This is classic late adopter behavior where customers are willing to shave quality for price.

The trend was also mirrored by other big players in the industry. Samsung’s record profit couldn’t hide slowing smartphone growth. Sales of high-end devices fell short of analysts expectations and lower average selling prices ate into the company’s profit margins. Second-tier players like Nokia and BlackBerry Ltd (NASDAQ:BBRY) fared even worse.

It’s clear the smartphone is moving into the second phase of its product life cycle. This is typically marked by falling growth rates and paper-thin margins. Not a fun time to be an investor.

Foolish bottom line

The technology industry is alive and growing but it won’t be a smooth ride for all of the players. But by listening to these quarterly conference calls, investors can sidestep pitfalls and exploit hidden opportunities.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Apple and Facebook. The Motley Fool owns shares of Apple and Facebook. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Can’t Miss Quotes for Technology Investors This Earnings Season originally appeared on Fool.com is written by Robert Baillieul.

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