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Technology Stocks : Nokia (NOK)
NOK 6.730-0.7%Nov 14 3:59 PM EST
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To: brian h who wrote (2709)11/12/1999 1:04:00 PM
From: tero kuittinen  Read Replies (3) of 34857
 
"In addition, Qualcomm phones will get an immediate boost by simply placing the Nokia or Motorola brand name on the front cover."

This is the interesting part. The writer thinks that selling mobile phones is like selling cola drinks. Slap a new label on a bottle and hey presto - you have a Coke! Apparently the writer also thinks that Qualcomm's problems can be traced to low name recognition. If only the phones were called Nokia! Then pdQ and Q-phone would be hits!

There's a slight problem with this line of thought. It does not bear any resemblance to what we know about branding and selling mobile phones. Thin Phones look like Bulgarian calculators, no matter what brand is slapped on them. The display technology is rudimentary and the styling is vintage 1974 - you can't change that by labeling. pdQ is an outrageously heavy smartphone with a 40-hour stand-by time. It's two years behind its times.

Maybe Nokia will buy the division for the capacity and scrap all current model lines. But the day the company starts selling Thin Phones with Nokia brand would be the day when the world's eleventh most valuable brand sustains some serious damage. You don't slap a Mercedes Benz star on a Daewoo and end up with a cheap car with a good image. You end up with a cheap car and a cheapened brand.

Tero

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