Data Usage Grows with New iPhone Generations

The original iPhone, introduced by Apple (NASDAQ:AAPL) in 2007, acted as a catalyst in boosting data usage over cellular networks which is almost doubling every year. It now turns out that the new iPhone 4S, with features such as the voice recognizing software called Siri, consumes twice as much data as its predecessor the iPhone 4. For its part the iPhone 4 was 1.6 times more data hungry than the earlier iPhone 3G.

Data networks are now struggling to cope with galloping bandwidth demand caused by sophisticated apps and appetite for data on the go. “I use the iPhone 4 myself and when I first heard of the iPhone 4S features I was not compelled to rush out and get one. However, the data usage numbers I am seeing make me wonder what I am missing,” said Arieso’s chief technology officer, Michael Flanagan.

Tablets are adding to the pressure, with iPad 2 tablets reportedly consuming 2.5 times more data than the iPhone 3G. Cloud services are going to exacerbate the situation further. This trend should benefit telecom gear manufacturers such as Ericsson (NASDAQ:ERIC), Nokia Siemens Networks (NYSE:NOK)(NYSE:SI) and Alcatel-Lucent (NYSE:ALU).

Here’s how these stocks are reacting to the news:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $420.77, up $2.74, or 0.66%. They have traded in a 52-week range of $310.50 to $426.70. Volume today was 5,756,259 shares versus a 3-month average volume of 15,054,700 shares. The company’s trailing P/E is 15.20, while trailing earnings are $27.68 per share.

LM Ericsson Telephone Co. (NASDAQ:ERIC): ERIC shares recently traded at $9.62, down $0.12, or 1.23%. They have traded in a 52-week range of $8.83 to $15.44. Volume today was 1,776,638 shares versus a 3-month average volume of 4,988,380 shares. The company’s trailing P/E is 13.82, while trailing earnings are $0.70 per share.

Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.28, down $0.13, or 2.4%. They have traded in a 52-week range of $4.46 to $11.75. Volume today was 23,362,436 shares versus a 3-month average volume of 29,248,600 shares. The company’s trailing P/E is 22.64, while trailing earnings are $0.23 per share.

Siemens AG (NYSE:SI): SI shares recently traded at $97.03, down $0.55, or 0.56%. They have traded in a 52-week range of $84.86 to $146.74. Volume today was 452,107 shares versus a 3-month average volume of 945,051 shares. The company’s trailing P/E is 10.77, while trailing earnings are $9.01 per share.

Alcatel-Lucent (NYSE:ALU): ALU shares recently traded at $1.57, down $0.01, or 0.63%. They have traded in a 52-week range of $1.39 to $6.63. Volume today was 2,938,536 shares versus a 3-month average volume of 21,682,200 shares. The company’s trailing P/E is 5.08, while trailing earnings are $0.31 per share.

To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com