SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Nokia (NOK)
NOK 6.730-0.7%Nov 14 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: slacker711 who wrote (4177)4/14/2000 12:38:00 PM
From: tero kuittinen  Read Replies (1) of 34857
 
I just hope that the handset sales growth can top 50% year-on-year. And that the network sales growth stays above 25%. It's probably the margins that will get the most attention. 23% should be doable for the phones - network situation is hairier, because R&D costs are zooming as the new mobile internet standards start arriving.

Upside surprise has to come from the phone unit - the new GPRS and DSL deals don't show up in the network numbers yet. Motorola's weak quarter leaves a slight chance for Nokia to hit 60%-plus handset sales growth, though that's unlikely. If Mot had shown strong phone sales growth, that would have meant that Nokia can't post a major surprise.

Every percentage point of phone sales growth above 40% or so has to be torn from the hides of competing manufacturers. That's why I can't figure out why weak phone sales of the competition can be interpreted as a negative for Nokia. Nokia has a lot more leverage with component suppliers than Motorola - I doubt that Motorola's component problems can be generalized.

Nokia had a comparatively stale phone range during the first quarter of 1999 - I expect that the new models will keep the margins firm during this quarter. There's this tiny possibility that 8850 and 8210 might push the handset margin north of 25%... I'm holding onto that fantasy to take me through this gory week.

Tero
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News