Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: slacker711 who wrote (4585)	1/26/2007 12:22:19 PM
From: slacker711	Read Replies (2) \| Respond to of 9255

It looks like Nokia is going to use some of their flexibility to grab some share in the UK. I believe the phrase "turn up the heat" was used in the CC to describe their potential strategy.... mobiletoday.co.uk Nokia starts 'broadest' price drop 9:41AM Thu 25 January 2007 Nokia has made its broadest price drop ever, according to distribution sources. Prices have been cut on 43 handsets, which accounts for almost the entire UK range. Most handsets have been reduced by around 10%. The popular 6021 is down from £54 to £50, the 6233 has had £15 slashed from its original price of £139 and the N73 has been cut from £229 to £211. The price drops came into effect on Monday. 'In the eight years I have been working with Nokia, I have never known them to drop the price on much more than ten handsets at a time,' said one source at a major handset distributor. Nokia says the price cuts are to 'clear a space' for newer models, such as the N95 due in March. 'We tend to use this time to adjust the pricing model, firstly, because it helps the channel, and secondly, because it starts to clear a space in the range for the newer models,' said a spokesman. The move has left some handset distributors worried. The new UK prices could undercut them, leaving them with large volumes of unofficially sourced stock. One source said: 'No-one is protected on price which is causing massive problems in distribution.' The spokesman denied that the price cuts were a reaction to a drop in market share. 'If you react to every market change by adjusting your price you'd be in a strange position,' he said.

To: slacker711 who wrote (4585)	1/26/2007 2:02:07 PM
From: sisuman	Read Replies (1) \| Respond to of 9255

Slacker Apparently that margin difference just doesn't carry much weight in some minds. Here's Argus' Research perspective on NOK vs. MOT. NOKIA Argus keeps NOK Hold rating 2007 EPS forecast = $1.55 2008 EPS forecast = $1.84 5 year growth = 13% Uncertainty about near-term results: NOK had nothing positive to say about its WCDMA sales and is losing to Sony-Ericsson in WCDMA; NOK has much more to lose in its fight with QCOM than QCOM has. MOTOROLA Keeps MOT at buy with target of $30 2007 EPS forecast of $1.36 2008 forecast of $1.52 5 year growth = 12% Believes that recent MOT weakness greatly overstates the damage to long-term prospects for the handset busuness and that investors will respond to improving EPS momentum throughout 2007. This is why investors have such confidence in analysts. Sisuman