Supply Tightness Could Limit Handset Industry Upside, Citigroup Reports (CELL)

While strong demand is clearly encouraging, Citigroup said that it believes supply tightness could limit handset industry unit upside in 4Q. This could have a negative impact on Brightpoint, Inc. CELL. “However, continued strong demand coupled with supply tightness and the secular shift toward smartphones potentially sets up an above seasonal 1QCY11,” Citigroup writes. “Brightpoint normal seasonality as -15% to -25% Q/Q and sees -10% to -15% as possible 1Q industry sequential unit volume decline.” Brightpoint currently trades at $8.44.