To: S100 who wrote (13380 ) 7/5/2001 1:52:10 AM From: S100 Respond to of 34857 SURVEY - FINLAND: Behemoth maintains growth prospects while rivals begin to feel the chill: Has Finland's top company become too dependent on handset sales? Financial Times; Jul 5, 2001 By CHRISTOPHER BROWN-HUMES Nokia is a company that has got its timing spectacularly right in the last decade, but the optimism it expressed last December about prospects for the mobile phone industry seems to have been one of its less successful calls. Jorma Ollila, the company's chairman and chief executive, rounded off an upbeat presentation to analysts by stating that "in the mobile world, the best is yet to come". He may yet be right in the long-term, but in the short-term at least the prediction has proved wide of the mark. snip snip Many analysts believe that Nokia will struggle to maintain its margins in the long-term, because they argue that mobile phones will become a commodity like personal computers and other high-tech products. Nokia insists that this will not happen, partly because the complexities involved in making ever more sophisticated handsets are a formidable deterrent to new entrants. But not even Nokia would dispute the view that its fortunes may depend on the development of the mobile internet. Already delayed, it is still far from certain when 3G will take off, with continuing concerns about consumer demand and technical issues like interoperability. Nokia talks of the 3G breakthrough coming towards the end of next year, with intermediate GPRS services beginning the transition to 3G already later this year. If it is right, the current slump in market growth may indeed be as temporary as Nokia is hoping. globalarchive.ft.com