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

To: ehopper who wrote (5414)	6/11/2000 2:04:00 PM
From: Kent Rattey	Read Replies (1) \| Respond to of 34857

ehopper, I guess they will have to buy QCOM, or find a competing standard that doesn't rely on QCOM's IPR, then get it blessed as a 3G standard(overnight). Otherwise, they may hold their margins, but lose marketshare as CDMA, whatever flavor, penetrates the world. In today's environment, NOK owns most of the IPR for its market. It doesn't in the CDMA world. The world is changing, however, great companies adapt. Once again, the same arguments were used over IBM and INTC, and the rest of the box makers(once in a while, age does help...providing you can still remember!). Somehow, the asians and the rest of the world competed with cheaper product and decent margins with INTC's chips. A Dell wouldn't even consider trying to compete in the PC chip market, but will still make boatloads of cash. Inovation. Kent

To: ehopper who wrote (5414)	6/11/2000 2:50:00 PM
From: q_long	Respond to of 34857

Nokia has achieved significant economies of scale for those margins. But handset prices continue to fall in a business that is increasingly a commodity. Right now NOKIA can use this to their advantage given domination in TDMA and GSM forcing competitors to compete on very low margins. Will the economies of scale be as great with the gradual transition of GSM and TDMA towards 3G CDMA (whatever flavor.) You have to consider the CDMA track record thus far. I expect consolidation of Asian manufacturers to compete. Look out for Hyundai, Kyocera, Samsung and LG Going forward the game is changing soon it will be dominated by those proven in CDMA. IMHO