From the Bull Market Wireless Investor.............1. NOKIA SAYS WAP PHONE DEMAND UNPRECEDENTED
According to Reuters, top executives of Nokia (NOK) report that the
Company is experiencing extremely strong demand for its first handset that
uses the Wireless Application Protocol (WAP) for mobile Internet. Nokia
started shipments of its first WAP phone, called the 7110 or the Nokia
Mediaphone, at the end of September. Nokia's head of its mobile phones
unit reportedly stated that demand for the 7110 model was much stronger
than Nokia had expected. The Company has already delivered around 100,000
units of the model and is ramping up production to meet demand.
COMMENT: This is TREMENDOUS news as Nokia was expecting very strong
demand to start with. It is not much of a leap to say that demand much
stronger than Nokia expected should also translate into demand for Nokia
stock much stronger than even we expected. Exceptionally strong demand
for WAP-based phones bodes well for virtually every stock in the Wireless
Portfolio.
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2. NOKIA BECOMES EUROPE'S SECOND MOST VALUABLE COMPANY
Boosted by faster-than-expected growth in phone sales, Nokia (NOK), the
world's top cellular phone manufacturer, became the second-biggest
European company in terms of market value. The Company was worth $184
billion at Monday's close. The stock is up 380 times since 1992.
Europe's market capitalization leader, BP Amoco Plc (BPA), is worth 9%
more than Nokia. Surging global demand for mobile phones is also
providing a boost, and easing of export restrictions to China, Nokia's
second-largest market, is expected to continue to add to Nokia's profit.
COMMENT: While Nokia has already won the race for the regular cellular
phone market with almost twice the market share as runner-up Motorola
(MOT), the top slot for Internet-enabled cellular phones is still up for
grabs. With the handset market becoming increasingly concentrated around
the industry leaders, Nokia's star should continue to shine. |
