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Technology Stocks : Nokia (NOK)

NOK 6.665

-1.0%

3:59 PM EST

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To: Jim Lurgio who wrote (1121)	11/2/1998 3:45:00 PM
From: tero kuittinen	Read Replies (4) of 34857

Kool new Nokia analog phone - weighs 170 grams and has FM radio! It has many of the 61xx features, so it's a digital phone lookalike, which should appeal to buyers. I hope they start to use this FM angle in digital phones as well... it sounds like a winner. I like the way Nokia is managing the transition from analog to digital. They are still churning out innovative new analog phones and keeping the sales going even though the overall market growth is winding down. No retreat, no surrender. Higher digital growth will eventually crowd out the analog biz entirely, but in the meanwhile we're not seeing the kind of painful transition Mot is undergoing as the collapsing analog sales rob the entire phone division of growth. Right now 20% of the Nokia phone sales are analog. There's still growth in Eastern Europe so it makes sense to hook the customers who will eventually migrate to digital. Interesting point: that analog 20% means that the sales of Nokia's digital phones grew by at least 110-120% last quarter since the overall growth was 94%. So that is the real benchmark purely digital phone companies like Ericsson need to surpass to start to take share from Nokia in the digital market. Tero

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