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

To: A.L. Reagan who wrote (7541)	10/12/2000 11:47:00 PM
From: Puck	Respond to of 34857

I take issue with your analogy. Nokia is not the #2 mobile phone supplier in its industry and it does appear that size matters immensely in the handset business. To support my point I present as evidence the facts that the difference in profit margin between Dell and its most profitable competitor (Gateway; HP doesn't break out its pc business) is less than 1% and that the same difference between Nokia and its most profitable competitor (Motorola) is 14%. Do you really believe that Nokia handsets are indistinguishable in the minds of the consumer from the handsets its competitors have on the market? Everything I've heard indicates to me that Nokia's market share is still expanding. (Witness Motorola's strategic withdrawl from the low end handset business in Europe, which it once dominated.) Don't forget that Nokia is becoming involved with mobile internet services and content to add a third leg to its business model in the 3G future. This is far more ambitious than Dell's add on internet access service.

To: A.L. Reagan who wrote (7541)	10/13/2000 7:38:42 AM
From: Hassell Anderson	Read Replies (1) \| Respond to of 34857

A.L. NOK is the DELL of the wireless industry Actually, I see NOK as the CPQ of the wireless industry. Like CPQ, NOK's strategy is based on vertical integration. Also like CPQ, NOK will soon learn that vertical integration REDUCES rather than INCREASES value to the customer. NOK's strategy of vertical integration will insure that their products fall further and further behind as the transition to CDMA occurs. Eventually, their prized margins will erode as the true DELLs of wireless begin to emerge, most likely from Asia. Hassell