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

To: 49thMIMOMander who wrote (26516)	6/9/2004 4:25:49 AM
From: elmatador	Respond to of 34857

Mobile handsets Published: Jun 8 2004 21:02 \| Last Updated: Jun 8 2004 21:02 Aftershocks from the first-quarter earthquake are still reverberating around the mobile handset industry. Gartner, the research group, on Tuesday confirmed the scale of the market share shift. It estimates that market leader Nokia lost 5.7 percentage points compared with the first three months of 2003 leaving its share below 30 per cent. Motorola had a bumper period, with its share up 1.7 percentage points to 16.4 per cent. Asian manufacturers, and notably Samsung, also notched up healthy gains. How much should investors read into the numbers? Short-term factors magnified the changes. For example, Nokia achieved high fourth-quarter numbers because it was more successful than rivals at sourcing components in a tough environment. That unwound in the first quarter, when Nokia also felt the force of being late with fashionable clamshell handsets. Motorola, meanwhile, was boosted by new models that benefited from pent-up demand after launch delays last year. While such wild swings are unlikely to be repeated, Nokia's stranglehold on the industry has weakened. In addition, it has been forced to cut prices, which does not show up in the volume numbers. It will fight back. Motorola, meanwhile, has made leaps forward in its manufacturing and design, which has shown through in volume growth and stronger margins. But, longer term, the threat is increasing from the east. Both Nokia and Motorola will struggle to arrest the march of the Asian manufacturers. Mobile sales to hit 600m this year