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

To: Puck who wrote (7015)	8/25/2000 5:15:32 PM
From: Maverick	Respond to of 34857

MSDW:Mobile Net parnertship w/ AMZN AOL, > 30% mkt shr, Rising replacement mkt Excerpts follow: Company Description Nokia is the world’s leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks, including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, multimedia terminals, and computers. Divisions include Nokia Telecommunications and Nokia Mobile Phones. Key Investment Positives · Widening competition gap in mobile phones. Nokia claims its market share in mobile phones was over 30% in the second quarter of 2000. This suggests Nokia is almost twice the size of the next biggest player, and has significant advantages in terms of economies of scale, supply chain management and ability to drive the industry. · Rising replacement market. We expect the replacement market to continue to rise as a percentage of total units, up to 60% by 2003. Because Nokia is a market leader with good brand loyalty, the rising replacement market should, in itself, drive the company’s share higher. · Solid Networks business. Nokia’s wireless infrastructure is enjoying good growth and has captured contracts for both general packet radio service (GPRS) and third generation (3G), the next generation wireless networks. Nokia is also seeing good growth in wireline access, including digital subscriber line (DSL). Margins should be sustainable at around 18%. · Mobile Internet partnerships. Nokia signed global agreements with Amazon.com and America Online. Nokia is teaming up with strong brand names, with an “installed” Internet presence, to shape the mobile Internet, and we view such partnerships as potentially very powerful. We think the Amazon partnership offers significant potential for Nokia in the mobile commerce space due to Amazon’s strong customer base. Further, we feel the AOL partnership may give Nokia a competitive advantage over the several other smartphones currently available in the US markets.