Tero, Gus is claiming that high prices amid high sales growth and market share growth is somehow bad. It occurred to me that Nokia has similar 'problems' with their high-end handsets, which apparently sell really well and make a fortune for them.
Gus says because CDMA infrastructure and handsets are way more expensive than GSM, and therefore in trouble, despite winning contracts all around the world, and even now in a little 450MHz zone in Budapest. I've tried explaining that high prices are a measure of success, not failure, [assuming the high prices are not a transition to disaster like Apple's high prices and declining market share in the early 1990s before the brilliant recent turnaround].
I recall your many enthusiastic posts about how Nokia is way upmarket while Ericsson, Motorola and others have scrambled around in the low end, with low margins, low profits and eventual retreat from the business. You have been correct.
Perhaps you could explain how the same situation applies to CDMA which is charging way higher prices than GSM. Check out the price and growth rate of cdmaOne in Japan compared with the giveaway PHS handsets.
It's so nice to be able to have you on the CDMA side! Welcome to the wild-side. Let's hope Nokia is not far behind.
Maurice |
