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Technology Stocks : Nokia (NOK)
NOK 6.500-0.1%Jan 5 3:59 PM EST
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To: ehopper who wrote (5414)6/11/2000 2:50:00 PM
From: q_long   of 34857
 
Nokia has achieved significant economies of scale for those margins. But handset prices continue to fall in a business that is increasingly a commodity. Right now NOKIA can use this to their advantage given domination in TDMA and GSM forcing competitors to compete on very low margins. Will the economies of scale be as great with the gradual transition of GSM and TDMA towards 3G CDMA (whatever flavor.) You have to consider the CDMA track record thus far. I expect consolidation of Asian manufacturers to compete. Look out for Hyundai, Kyocera, Samsung and LG Going forward the game is changing soon it will be dominated by those proven in CDMA. IMHO
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