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

To: ehopper who wrote (5256)	6/5/2000 12:22:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 34857

ehopper, you are wrong. Nokia has made an analogue phone. It is balanced on my head as I write this. ooops,, it just fell off onto the floor. Okay, so I'm not as good as those women who get round Africa with huge containers and things balanced on their heads. Nokia probably made more than that one. But the point of mentioning analogue was to show that components in short supply are NOT used in low value applications. The high bidders put them in high value applications. Nokia has very high value applications with high margins, so they will get their share. But CDMA networks are higher value, so Nokia will find intense competition for components from the successful CDMA handset makers. You say Nokia has secured the components they need for the next three years. That's very prescient of them. Also, I don't believe it. They will have a certain number of component contracts, but they cannot guess with certainty how many of what they'll need over the next three years. So they'll be in the open market for spot price components, the same as everyone else. One effect of a component shortage is that it will kill off very quickly crusty old systems and companies which are barely profitable. Analogue systems will be dumped really fast as the price of components in those is the same as components in high-end Nokia phones and high-end CDMA phones. Guess which will get the components and guess which will go out of business. This is very good for Q! because the USA is full of analogue as is Australia, so you'll find herds of people swooping on GSM and CDMA handsets instead of analogue. By the way, that Nokia phone which was balanced on my head was single mode, single band, analogue, about 7 inches long and weighing at least a pound. Similar to a Globalstar phone. Where did you get the idea I thought or said Nokia is through? I have for years admired Nokia [other than their dumb idea of joining the slimy hagfish school]. Nokia has done brilliantly! Maurice