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Technology Stocks : Nokia (NOK)

NOK 5.935

+1.1%

Nov 21 9:30 AM EST

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To: tero kuittinen who wrote (4089)	4/10/2000 6:41:00 PM
From: tero kuittinen	Read Replies (4) of 34857

Baby did a bad, bad thing.... "Motorola's Digital Turnaround". Here we go: "Personal Communications Segment Segment sales rose 24 percent to $3.2 billion and orders increased 20 percent to $3.2 billion. Operating profits declined to $49 million, compared with $83 million a year ago,... excuses... " Not only does Motorola show just 24% sales growth (which is below global handset sales growth) - they actually have the order growth coming in below sales growth. Not only are both sales growth and order growth telling us about more ground lost to Nokia; Motorola has also managed to decimate the profitability of the consumer product division. The European orders are actually declining - amidst the biggest mobile phone boom of the region's history. So much for the V-series sales after 8210 and 8850 arrived to shops in December. It looks like Motorola's European come-back ended the day after Nokia started shipping the new line-up. At the same time, Motorola's network orders in Asia are also declining - crippled by neglect and mishandling of the Asian GSM boom. Even excluding the Iridium disaster, Motorola's network order growth would have come in at just 8% globally. The strategy of concentrating on CDMA is sure having a dramatic effect on Motorola's results. However - the effect is not the one US analysts have been gushing about. It's more like the effect that bubonic plague had on London during the seventeenth century. Congrats on landing the Verizon handset order - this company is going to need it. Bad news: weak consumer product sales growth, weaker consumer product order growth, lower profit margins in consumer products, weak network order growth. Good news: Sprint loves ya, Mot! Recommended reading: * the recent Businessweek article on Motorola's stunning come-back in both handset and network markets. Tero

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