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 Corp. (NOK)
NOK 6.845+0.5%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eric L who wrote (139)12/4/2000 1:19:12 PM
From: tero kuittinen  Read Replies (1) of 9255
 
I'm not sure about Nokia being "overcommitted to pending availability of WAP handsets a year ago". Sagem just announced ugly numbers a while ago and blamed early dependence on WAP and GPRS models. That's overcommitment; relying on WAP phones as a core part of sales during the second half of 2000. WAP demand isn't driving phone sales at this moment, of course.

Nokia didn't build this winter's sales strategy on WAP or GPRS demand. They did hype 7110 relentlessly long before it became available - but that was intended to galvanize operators into committing to WAP and GPRS. Nokia itself didn't commit to early, high-volume WAP or GPRS shipments. It didn't anticipate high 7110 volumes. It hasn't built the volume strategy on WAP models; it's depending on new, decidedly non-WAP 8000- and 3000-series.

Now - a lot of people bought into the early WAP hype and assumed that WAP would drive volume sales this winter. That's their miscalculation. 7110 was a window-display model that was meant to drive content-creators and operators towards WAP, and that strategy worked. Maybe that shows a certain amount of cynicism from Nokia's part; but it certainly isn't overcommitment. It was a tactical maneuvre. There would be an inventory problem with 7110 if Nokia had been serious about its volume ramp-up - and there isn't.

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