Update: iPhone stocks
Earlier this year, Fortune recommended stocks poised to benefit from the soon-to-launch iPhone. We look at how those stocks performed.
(Fortune Magazine) -- In "How to Dial In to the iPhone Bonanza" (May 28) we recommended a basket of stocks poised to benefit from Apple's breakthrough iPhone: AT&T (Charts, Fortune 500), the exclusive phone operator for the iPhone in the U.S.; one of the phone's chip suppliers, Broadcom (Charts); and rival Nokia (Charts), which would benefit from overall consumer interest in sophisticated phones such as the Apple device.
What happened: We gave some mixed signals. Phone giant AT&T, which got some bad press for the slowness of the data connections on the iPhone, is nonetheless up almost $3, or 7%, as of Oct. 31.
Chipmaker Broadcom hit $43 but fell back to $33 (its price when we cited it) after analysts downgraded the stock on concerns about the company's investment strategy and expenses.
Our one great call? Nokia. The Apple competitor, which is launching an online music store (sound familiar?) and is pushing into Internet services, has seen its stock climb $15, to almost $40, a 60% gain.
We were wrong about Apple (Charts, Fortune 500) itself, though. We said the stock, then trading at 32 times trailing earnings, was a risky bet. The stock now trades at 48 times earnings and has surged $89, to $190.