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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (8007)	8/30/2001 4:39:06 PM
From: LLCF	Respond to of 74559

And the first turn is coming up. Besides, this is being debated elsewhere on SI by many very knowledgable folks... I don't want to argue here. dAK

To: Wyätt Gwyön who wrote (8007)	8/30/2001 5:59:44 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<Tough economic conditions and price pressures from rivals, especially from Ericsson and Motorola, has hit Nokia, analysts said. Nokia said in connection with its second quarter earnings release last month that it was unwilling to sacrifice profits for market share. "But we see Nokia picking up in the second half. They will have new terminals (handsets) out later in the year," Wood said. U.S.-based Motorola came in second with a 14.8 percent share, versus 13.2 percent last quarter. A new portfolio of handsets and a round of price-cutting to clear inventories helped the company gain share, analysts said. Number three Ericsson from Sweden climbed to 8.3 percent from 6.8 percent and again regained the number three spot after losing it to Germany's Siemens in the previous quarter. The merger of Ericsson and Japan's Sony's mobile phone units, formally sealed on Tuesday, is expected to pose a challenge to Nokia and Motorola. Number four and five, Germany's Siemens and South Korea's Samsung Electronics, also gained share quarter-on-quarter. Siemens climbed to 7.9 percent from 6.9 percent, and Samsung rose to 6.9 percent from 6.3 percent. "Samsung is one of the rising stars in the mobile phone market," Wood said, adding it had been breaking away from the second tier manufacturers for some quarters.> Why would Samsung be doing so well Mucho? They make more CDMA handsets than anyone - that's why. They are wolfing down market share. They are coming after big, fat, Nokia which is mostly in legacy phones . The CDMA world is coming quickly now. It's now more a matter of saying where CDMA isn't than where it is [which has been the issue up until recently]. When you discuss market trends, you are better to think of percentages than total numbers, though of course a % at a very low level is irrelevant - but you know what I mean. CDMA at 12% is still struggling to gain ground, but that's a lot better than 1% only 4 years ago. I agree that the GSM Guild have done much better than I thought they would. Nokia especially has performed brilliantly and produced hugely popular, highly functional phones. But they can't get past the air interface and the inefficiency of GSM. As competition increases, that will matter more. Especially with extremely expensive spectrum which shows the importance of CDMA being [at least] three times as efficient with it as GSM. Mqurice