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Technology Stocks : Nokia (NOK)

NOK 6.705

-1.0%

10:24 AM EST

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To: tero kuittinen who wrote (799)	7/29/1998 10:58:00 AM
From: Penny_Money	Read Replies (1) of 34857

Hi All: Nokia says that cellular phone users grew from 200 million as of Jan 1 1998 to 250 million on July 1 1998. Nokia hand set sales grew whereas ERICY and MOT stayed stagnant. This is puzzling. I have attempted to understand this phenomenon below. Please add/criticize the reasoning. This could be attributed to 3 (and/or) likely reasons: i) Nokia has a volume advantage so prices phones lower, ERICY and MOT lose sales (price per phone * number of phones sold). So even though they sold a greater number of phones sales stagnated ii) New competitors taking share from MOT/ERICY (Qualcomm for e.g.). iii) Nokia taking market share from MOT/ERICY. Please feel free to comment. Insights appreciated. Penny (007 loves my 6160)

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