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Technology Stocks : Nokia (NOK)
NOK 6.490-0.1%3:59 PM EST
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To: Ruffian who wrote (5820)6/26/2000 5:17:00 PM
From: tero kuittinen  Read Replies (6) of 34857
 
The concept of diplomacy really is alien to you, isn't it? This is exactly what certain US analysts wanted to hear and Ollila did the right thing to make the comments. The reality is that Nokia could not have sold more phones last or this year no matter what their IS-95 line-up is. The phone sales growth cannot be higher than 60-80% with the current component shortages. There is no way around that - shifting manufacturing capacity from GSM to IS95 would have cut into margins.

Before the whining here gets any worse - let's look at the actual news releases from this day. Nokia landed the Singapore W-CDMA trial of M1, only a month after the Hong Kong agreement.

AT&T finally announced the EDGE development deal with Nokia; even though its current network orders are from Ericsson, Nortel and Lucent. This is the break into TDMA infra market that Nokia has been angling for - and a sign that mobile handset know-how does influence internet infra market. After the recent half a billion order from Voicestream, it is an indication that Nokia is starting to maken inroads in the North American mobile network market.

Motorola's downgrade was directly linked to its mobile internet infrastructure woes. These two trends are directly linked.

Tero
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