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Technology Stocks : Nokia (NOK)
NOK 6.090+2.6%3:59 PM EST
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To: t2 who wrote (4090)4/10/2000 6:51:00 PM
From: tero kuittinen  Read Replies (1) of 34857
 
t2 - since this is a family-oriented website, I can't use the language I want to.

This sentence is the crucial piece of Motorola's defence:

"The shift in product mix resulted from an increase in the number of prepaid programs, which feature low-tier products, offered by wireless service providers, particularly in Europe."

Motorola is trying to blame European shift to low-tier products for its profitability problems. However - what I find suspicious here is that Motorola's margins collapsed just as Nokia unrolled 7110, 8210 and 8850 in Europe.

So just when Nokia moved upmarket, Motorola was pushed downmarket. Mot blames the overall market conditions. But what about Nokia's high-end models? They aren't spending more than ten minutes on shop shelves - are they being stolen by evil leprechauns? That would explain the Dublin situation, but not Continental Europe.

My theory is that Nokia is selling expensive phones and Motorola is not. The fact that pre-paid is taking off in Europe is not an excuse for weak high-end phone sales.

Motorola needs to get rid of external antennas, hire some designers and chuck the Startac fixation that the V-series phones demonstrate. Here's a newsflash for Galvin: Startac was hot in 1995 - it's time to move on.

Tero
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