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Technology Stocks : Nokia (NOK)
NOK 6.500-1.3%Dec 30 3:59 PM EST
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To: Puck who wrote (7869)10/23/2000 12:06:01 PM
From: slacker711  Read Replies (1) of 34857
 
I guess I am just naturally more sceptical. It is hard for me imagine any company continuing to sustain the types of losses that Ericsson has for very long. The annoucement that they are culling their handset lines is BAD news....there current line sucks. They need new models, and a tri-band phone with bluetooth is exactly the type of technical innovation that might allow them to get back in the game.

As to synergy between handsets and infrastructure, it hasnt seemed to hurt Nortel in W-CDMA yet (or LU in IS-95). If I remember correctly, Ericsson had some sort of annoucement with Matsushita recently that covered 3G phones. If they expanded this agreement into a JV, I think it would allow them to continue to offer handsets and infrastructure that were "fine-tuned".

I sort of view Ericsson like I did Qualcomm and TXN back in '98. They both had money losing divisions (infrastructure/DRAM) that were shielding the performance of the companies main divisions. When each of these companies began to concentrate on their core competincies, the stocks took off.

This may not happen in the case of Ericcson....but the actions they are taking certainly look like a company preparing to sell the division.

Slacker
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