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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: shamsaee who wrote (28138)7/17/2000 4:40:00 PM
From: DownSouth  Read Replies (1) of 54805
 
Upto date AOL is still number one and being an ISP has no technical wizardry or IP roadblocks .INTC and TXN can say what they want but if NOK can't get it right after trying for years,I don't see how INTC and TXN can close the gap.

Apples and oranges. AOL is a service. They are gaining customers by "giving" their services away in an ongoing, huge market campaign. They are keeping their customers because of the relatively high switching costs. Most people don't want to change their e-mail address, loose access to Instant Messaging, or go through the mysterious hassle of setting up a new ISP on their computer.

Cell phones, otoh, are very simple to throw away and buy a new one. Unless you change service providers, you even keep your phone number. Changing sp's and getting a new phone number isn't a big deal, either.

In fact, everyone probably will throw away what they have right now within the next 2 years or so. I don't think folks have much loyalty to the NOK brand name, either. It's just another Japanese phone. <g> Texas Instruments and Intel, otoh, are real brand names, and hardly anyone will question the quality of their products.
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