Can the thriving smartphone market create more scopes for the small cap stocks? According to Forbes magazine, the companies that currently have major market share are Samsung and Apple with 30% and 13% share respectively. Their competitors such as LG, Lenovo and ZTE are catching up fast to take a share of the pie. In order to have a competitive edge, these companies are adopting strategies such as, price cuts, and adding up various features. Just in the second quarter of 2013, the smartphone market grew by 52% with the 238 million units sold.
How the Growing Smartphone Market can make Small caps grow
Here is the fact. The changing economy, technological shift, and execution of new policies have created many uncertainties both in the retail and financial market. However, at the same time this has created numerous growth opportunities for various companies; both large corporations and small firms. The organizations that adapt to the changing scenario quicker can come out as winners. Such flexibilities and endeavors to expand the business horizons can have positive effects on their stock performance.
Market and business expansion create needs for additional staffing and outsourcing projects. This strategy reduces the companies’ operating costs and generates more revenues that they can re-invest for further diversification. Additionally, it also creates lucrative opportunities for many small firms that work on the outsourced projects. Overall, all these business activities infuse life energy to an economy that is reeling or growing slowly. Cashing in on the fast-paced growth, small firms with lower capitalization bring out small stocks that are capable of giving high returns compared to the traditional stocks.
Some of the Small Cap Stocks that can grow
According to the Marketwatch.com, some small cap stocks can have significant growth due to the sales of iPhone. In the first three quarters of 2013, Apple sold 116 million units of iPhone, and the growth rate is expected to be higher in 2014 as well. Several firms that are into manufacturing businesses of RF modules, image sensors, audio chips, and power amplifiers are gaining momentum, and their stock prices are going upward. There are a few other stocks that may not be iPhone specific, but they too are growing at a fast pace. Manufacturers of console game controllers and firms selling software solutions fall in this category.
Here is the fact. The changing economy, technological shift, and execution of new policies have created many uncertainties both in the retail and financial market. However, at the same time this has created numerous growth opportunities for various companies; both large corporations and small firms. The organizations that adapt to the changing scenario quicker can come out as winners. Such flexibilities and endeavors to expand the business horizons can have positive effects on their stock performance.
Market and business expansion create needs for additional staffing and outsourcing projects. This strategy reduces the companies’ operating costs and generates more revenues that they can re-invest for further diversification. Additionally, it also creates lucrative opportunities for many small firms that work on the outsourced projects. Overall, all these business activities infuse life energy to an economy that is reeling or growing slowly. Cashing in on the fast-paced growth, small firms with lower capitalization bring out small stocks that are capable of giving high returns compared to the traditional stocks.
Some of the Small Cap Stocks that can grow
According to the Marketwatch.com, some small cap stocks can have significant growth due to the sales of iPhone. In the first three quarters of 2013, Apple sold 116 million units of iPhone, and the growth rate is expected to be higher in 2014 as well. Several firms that are into manufacturing businesses of RF modules, image sensors, audio chips, and power amplifiers are gaining momentum, and their stock prices are going upward. There are a few other stocks that may not be iPhone specific, but they too are growing at a fast pace. Manufacturers of console game controllers and firms selling software solutions fall in this category.