Street Signs
CNBC (CNBC) National Programming, DMA: 0
July 09 2008 2:22PM
Programming Type: Bus./financial

are in a higher speed network also improves. it sounds good. >> let's take a look at the shares ahead of the release. they are mott doing much of anything. show what's the trade n we like to look beyond the signs of we are looking past the apple story to when we are calling our trade. today's question, what other companies will be victims or victors in the wake of the new i-phone? david garrity is with us. steve, i have to begin with you. i have my i phone here. i will refrain comments from functionality of the iphone. in the old world everything apple made had to have apple software, apple this and that. the new world it is different. you can get a calendar function from one place, something else from another place. this is a whole new way of apple operating. >> apple is going to a different model here. apple has two models. one model was mcintosh, standard computer model. anyone could write software for it. there was the ipod model. apple started with the iphone ipod model. people want to write software for it. then pressure came and changed it which is very exciting for you will of us because now -- great opportunity for apple. apple outer loop wants other people to write software for to it make the i-phone more useful and since they have the hottest phone out there, they have the head start and coolest applications on the phone. >> i coccus tomorrowize what software i use but there would be companies that might really be able to make a lot of money on this but i could buy and write the software. >> slirt. in terms of operating on a 3g network, download speeds, much faster and opens up the opportunity for games. so from that standpoint we could look at a number of different game venders obviously. looking at electronic cards. you may look at companies that come from regions such as china where there is a very, very large cell phone game playing community. larger than you have here in the u.s. one company we think that my be of interest here is a company called perfect world, pwrd. >> they operate in a tiny side of things. >> chinese. in the u.s. >> trade on the nasdaq. i could play grand theft auto this. >> yes. the opportunity to do that. guess what. the phone company will be happy to -- charge you for the data plan to let you do just that. >> you can use this like a wii because -- it has all these. the games you see on this will give your wrist exercise maybe. >> which would be better than my thumbs, carp el tunnel. what about nintendo? is that a trade? just some of the games. >> any of the companies that have game libraries that could be readily adapted to the iphone and we have seen a lot of people looking at this seriously. the thing that was the negating factor was more of the network speed. aert the move to 3-bg makes a big difference. >> you gave us three games plays. i notice you are an apple lover, as you said. hold on to your fire for a second. david and i believe thinks the category killer, the n8 1 coming from a company that begins with n. >> nokia has been gearing itself up to be more of a competitor with apple. we have seen meaningful changes. comes with music service that has three of the -- four major music labels making their full library available to nokia customers for one year subscription-free by a handset. we had the n81 with eight gigabytes of storage coming out highly rated from an audio standpoint as a music and mp3 smart phone. even though it comes with music it is not available right now. apple has to consider what nokia brings to bear to the extent nokia has the scale in the globe am handset market. it will be very difficult for april. >> they have a global scale. apple does not have it. >> right. 40% of the whole market. apple can come back and say we are in the smart phone market where the prices are and margins are. if it is scale versus niche, nokia has it. >> i don't think it is going to present a serious challenge. what everyone is looking at down the road, challenging iphone, google phone, call it what you want. >> g-phone which is being developed. >> they have a lot of handset manufacturers lined up to implement the phone which is, again, all about applications. it is all about taking that phone have you and using it to do all sorts of things you never did before. perfect applications. you know, john dorr, $199100 mmm fund, developing iphone applications. they will work on the google phone and any carrier that lets people put applications on the phone. >> the whole comment about the games. i will give you the final word, buy nokia. >> well to the extent nokia isn't very significant here in north america, if you wanted a global play here, you know, yes, we are u.s. centric in this room now. if we look globally i wouldn't count nokia out and they will be there significantly. >> all right. gentlemen, thanks very much to both of you. we appreciate it. hopefully you are both connected enough ask don't have to wait in line too long. apparently the as long as started on 14th street yesterday in manhattan. the question for you all sl will you buy the new apple iphone? is it a complete waste of money? next, oil still higher. heading into the final moments of the trading session. we are going to count down. hedge funds turning in their worst performance in two decades. down 1%. down 1%. that's the worst? hedge funds, might the best way to invest your money now.