- Piper Jaffray comments on Novatel Wireless (NASDAQ:NVTL) saying Nokia announced the development of an HSDPA module designed to be embedded in notebook computers, in collaboration with Intel. The module will be included as part of Intel's next-generation Intel Centrino Duo platform.
Firm believes Novatel Wireless has more experience delivering wireless data solutions to notebook manufacturers, and has a strong portfolio of design wins that are expected to ramp later this year and into 2007
Nevertheless, they believe Nokia's new product offering could accelerate competition for future design wins and add further pricing pressure. Firm believes a combined Nokia/Intel solution could prove compelling to laptop OEMs seeking to streamline their supply chains, although performance specifications for Nokia's solution are unclear.
Maintains Mkt Perform and $12 tgt on NVTL.
Notablecalls: Not actionable but good to know category. Competing with the likes on Nokia will likely have a LT negative impact on margins.
Firm believes Novatel Wireless has more experience delivering wireless data solutions to notebook manufacturers, and has a strong portfolio of design wins that are expected to ramp later this year and into 2007
Nevertheless, they believe Nokia's new product offering could accelerate competition for future design wins and add further pricing pressure. Firm believes a combined Nokia/Intel solution could prove compelling to laptop OEMs seeking to streamline their supply chains, although performance specifications for Nokia's solution are unclear.
Maintains Mkt Perform and $12 tgt on NVTL.
Notablecalls: Not actionable but good to know category. Competing with the likes on Nokia will likely have a LT negative impact on margins.
Note that ThinkEquity is out on NVTL today downgrading the shares to Accumulate from Buy (tgt to 12 from 15) saying they expect to see significant pressure following the Nokia news.
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