Time to hang up on the mobile-phone industry

Published: September 13, 2007, 10:10 am

Tags: aapl, cell phone market, cellphonemarket, dow jones u s telecommunications sector, dowjonesu s telecommunicationssector, goog, iyz, leap, pcs, rimm, shares dow jones u s telecommunications sector index fund, sharesdowjonesu s telecommunicationssectorindexfund, t, vz

Filed under: Products and services, Google (GOOG), Apple Inc (AAPL), Short stories, Indices, Market matters, AT and T (T), Verizon Communications (VZ), iPhone, Technical Analysis, S and P 500, Smartphones, Housing Over the past two years, the shares of mobile-phone companies have rallied sharply, both in absolute terms and relative to the S&P 500 index. Since September 2005, the Dow Jones U.S. Telecommunications Sector -- which has an equivalent exchange-traded fund, the iShares Dow Jones U.S. Telecommunications Sector Index Fund (NYSE: IYZ) -- has gained 40%, outpacing the broad market by more than 21 percentage points. Despite all the euphoria, a number of recent developments suggest the bullish tide is turning and the sector could be in for a rough ride in the weeks and months ahead. Consider the following: Growing competition. Last Friday, BloggingStocks' Douglas McIntyre noted that "an all out price war" brewing in Japan could be a sign of things to come in a saturated U.S.

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