New smartphones a bonus for Vita Group Ltd

Source: Google

Vita Group Ltd (ASX: VTG) could see revenues and earnings jump after three major smartphone makers released new phones in the past month.

Google released its two new Pixel phones overnight, while Apple’s newest iPhone 7 models were released on September 7, 2016. LG is expected to begin taking pre-orders for its latest flagship smartphone – the LG V20 – on October 21.

In the latest update from research firm IDC, Samsung retained its number one position in the worldwide smartphone market with 22.8% market share, followed by Apple on 11.7%. Huawei was third with 9.3%, with OPPO in fourth place holding 6.6% of the market.

In Australia, the difference is even more pronounced with Samsung holding 39.3%, Apple 32.5%, Sony 3.2% and LG 2.5%, with other brands holding 16.3% according to Kantar Worldpanel ComTech.

Samsung’s flagship Galaxy S7 and S7 Edge devices were released in March 2016.

Vita Group, as an operator of 103 Telstra Corporation Ltd (ASX: TLS) retail stores, could see an influx of customers wanting to switch or upgrade their phones, beginning last month and lasting for sometime, given the struggles Apple has had trying to keep up with demand for its iPhone 7 models.

Despite being released more than a month ago, not one Apple Store in Brisbane has an iPhone 7 available for immediate pickup, according to my research.

Telstra also appears to be the only major telco offering Google’s latest Pixel smartphones to consumers today, with Vodafone and Optus yet to have them available online. That’s another bonus for Vita Group – as the operator of Telstra retail stores.

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Motley Fool writer/analyst Mike King owns shares in Vita Group Ltd. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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