Nokia Corporation (ADR) (NOK), Research In Motion Ltd (BBRY): Smartphone Power Structure Back to ‘Normal’

Perhaps the biggest blow for Research In Motion Ltd (NASDAQ:BBRY) is that its subscriber base has been tapering off not only year-on-year, but worse still each quarter for the past year. This implies that the recent product launches have had little impact. In his defense, Research In Motion Ltd (NASDAQ:BBRY) CEO Thorsten Heins argues that the current fiscal year is largely a year for investment. He further adds that growth will start tracking upward in the next fiscal year, intimating that all he needs is a little more time.

In other industry news, Bloomberg reports that Nokia Corporation (ADR) (NYSE:NOK) has signed off to buying Siemens’ stake in their telecom-equipment venture. The deal, valued at around $2.6 billion, will see Nokia Corporation (ADR) (NYSE:NOK) use a bridge loan. Even with thinning margins, the Finnish handset maker has been compelled to sink its foot further into debt in order to survive.

Foolish conclusion

The argument for a third ecosystem may ultimately materialize, but not this year. Although Research In Motion Ltd (NASDAQ:BBRY) and Nokia Corporation (ADR) (NYSE:NOK) have shown that they can pack a punch, they will have to try harder in order to leave a mark.

Recent reports, sourced from company insiders, indicate that Google Inc (NASDAQ:GOOG) is working on an Android game console. It is believed that this move is a response to a similar initiative taken by Apple. If Apple and Google venture into the gaming sector, they will not only compete directly with Microsoft Corporation (NASDAQ:MSFT) and Sony Corporation (ADR) (NYSE:SNE), but they will also be able to leverage their strength in smartphones to bring revolutionary advancements in gaming. This could yet again be a huge growth pillar for the two tech titans.

Both Google Inc (NASDAQ:GOOG) and Apple are good buys. Apple Inc. (NASDAQ:AAPL), however, makes a more compelling case as of now. Its trading relatively low at just below $400 (as of this writing) and could see some reasonable upside going forward.

The article Smartphone Power Structure Back to ‘Normal’ originally appeared on Fool.com.

Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.