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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (4476)	4/29/2000 9:54:00 AM
From: tero kuittinen	Read Replies (1) \| Respond to of 34857

Chaz... one of the better features of Finns is that we are very loyal. One the worst is that we tend to bear grudges; sometimes for decades, sometimes longer. It's sad and ugly, but that's the way it goes. You were one of the individuals who trumpeted that Sony will crush Nokia in America with the help of Qualcomm chipsets. Maybe you have chosen to forget, but I sure haven't. Then, when Motorola started using Qualcomm chipsets, you trumpeted that now Nokia is in trouble. We just saw how that scenario is playing out. And now, like a weathervane, you once again twist in the wind. You turn around and claim that Motorola was never a serious threat at all - but those Taiwanese sure are. You have lost credibility with each empty threat. Sony and Motorola handset units turned out to be strawmen. And we are supposed to believe that some non-brands coming from Taiwan and China pose a serious threat to Nokia? I have actually seen the specifications of the new Chinese mobile phones - and they make the Q-phone look like a class act. If Sony and Motorola with all their manufacturing expertise and brand strength are failing in the mobile phone market - what would the advantage of the Chinese vendors be? Price, presumably. But if there is anything to be learned from this quarter's results, it's that you can't compete against Nokia on price. Nokia's selling point is not price and never will be. Both Motorola and Ericsson have attempted to compete by lowering prices aggressively. They have succeded in eviscarating their phone divisions and destroying their brands. But all that price slashing has not left even a scratch on Nokia's performance. Mobile phones aren't like computers - they are like cars. If you want to bet on Ssangyong beating BMW at its own game, be my guest. And when it comes to the low end market - the 3210 is hitting 20 million unit volume this spring. You really think that Acer can ramp up to this level in a year or two without risking bankruptcy? You can't compete in the low-end market unless the production volume of components like displays is topping 40 million units per year. That's the figure for Nokia's new display platform that the 3210 shares with half a dozen other new models. I still have a hard time understanding that it takes a Finn to explain concepts like economies of scale, brand management and barriers to entry to an American investor. Tero