The Zacks Analyst Blog Highlights: Google, Apple, Microsoft, Qualcomm and Ford Motor

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Jun 02, 2014, 09:30 ET

CHICAGO, June 2, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Google Inc. (Nasdaq:GOOGL-Free Report), Apple Inc. (Nasdaq:AAPL-Free Report), Microsoft Corp. (Nasdaq:MSFT-Free Report), Qualcomm Inc. (Nasdaq:QCOM-Free Report) and Ford Motor Co. (NYSE:F-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Emerging Markets Driving Smartphone Growth

As the next-generation handsets, smartphones are continuously gaining popularity throughout the world. Characterized by advanced operating systems, these devices are capable of supporting a wide variety of services and applications.

Recently, research firm IDC projected that smartphone shipments worldwide will likely reach 1.2 billion this year, up from 1 billion in 2013. Furthermore, the upside will probably be sustained and the smartphone market is expected to reach 1.8 billion by 2018.

Importantly, the major surge in the smartphone growth is expected to come from the emerging markets of China, India, Indonesia and Russia. Another research firm, Strategy Analytics predicts that the Chinese smartphone market size may reach $87 billion in 2014, breezing past the current market leader, the U.S., which is expected to generate smartphone revenues of $60 billion.

IDC also reported that that the average selling price (ASP) of smartphones will decline to $314 in 2014 from $335 in 2013. The fall in Smarphone ASP will continue in next few years may even go down to $267 by 2018.

Intense competition within smartphone developers and the geographic shift of the core smartphone base from the economically developed western world to low-cost emerging markets are the primary reasons that will lead to the secular fall of ASP. Strategy Analytics forecasted 15% year-over-year growth in mobile phone sales to a record 430 million units in China in 2014.

The major three softwares that are likely to dominate the smartphone operating system include Google Inc. (Nasdaq:GOOGL-Free Report)-developed Android, Apple Inc. (Nasdaq:AAPL-Free Report)-developed iOS and Microsoft Corp. (Nasdaq:MSFT-Free Report)-developed Windows Phone software. Similarly, Qualcomm Inc. (Nasdaq:QCOM-Free Report), the largest global mobile chipset manufacturer, will immensely benefit from the smatphone market boom.

Ford Recalls 1.4M Vehicles in North America

Ford Motor Co. (NYSE:F-Free Report) has announced 4 separate recalls for a total of 1.4 million SUVs and sedans in North America, according to media reports. Of these, 1.186 million vehicles are in the U.S.

Of the total vehicles, Ford is recalling 915,216 Ford Escape and Mercury Mariner SUVs of model years 2008 to 2011, manufactured between Aug 18, 2006 and Sep 11, 2010, in North America. These vehicles are being recalled to fix a problem in the torque sensor in the steering column, which can lead to the loss of power steering and thus increase the probability of a crash.

U.S. regulators have reports of six injuries and five crashes related to this issue. The carmaker offers three different options to solve the issue. The dealers may replace the torque sensor; update the software; or replace the steering column depending on the condition of the vehicle.

Next, Ford is recalling 195,527 Explorer SUVs of model years 2011 to 2013 in North America. The automaker is recalling the vehicles due to an electrical problem in the steering gear, which can knock out the power steering. To solve this issue, the dealers can either update the software or replace the steering gear. There are reports of 15 accidents including two minor injuries due to this problem.

In addition, Ford is also recalling 200,000 Taurus sedans of model years 2010 to 2014 in North America. The automaker is recalling the vehicles due to possibility of rust formation around the license plate light, which can lead to short circuit and fire. The recalled cars were sold in 20 states and Washington, D.C., which use salt to clear roads of snow and ice. There are 18 consumer reports of fires pertaining to this issue.

Finally, Ford is recalling 82,576 Ford Fusion, Mercury Milan, Lincoln Zephyr and Lincoln MKZ vehicles of model years 2006 to 2011. The automaker is recalling the vehicles due to improper installation of floor mats, which may hinder the operation of the accelerator pedal. Ford announced that dealers will be replacing the mats to solve the problem.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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