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: thinkclear who wrote (5054)	8/5/2007 1:59:06 PM
From: Eric L	Read Replies (1) \| Respond to of 9255

Nokia in the USA TC, << Paul Jacobs has said, and I paraphrase, that as the court cases finish it will force qcom and nok closer to an agreement. Of the pending court cases I believe that an ITC decision on nok's alleged use of qcom patents in 2gsm will happen first. It would prevent nok from exporting 2gsm phones to the USA. My understanding is that the United States represents only a small % of nok revenue, maybe 5% or so if memory serves. >> Nokia revenue (including NSN) in Q2 was €12.587 Billion ($16.94 Billion) and 4.2% of that revenue -- €.527 Billion ($710 million) was generated in North America. << I did not listen to the last nok CC. Have they regained some the US market share they've lost in the last few years? >> No. Nokia's sales and share in the USA have been in steady decline for the better part of 3 years, even as they have clawed back global unit share and revenue share from their Q2 2004 low, to record (or near-record) highs today. Nokia shipped a paltry 4.8 million mobile devices (out of 91.1 million total units) to North America in Q1, and they shipped 4.1 million units (out of 100.8 million total units) to North America in Q2 (-21.2% YoY, -14.6% QoQ). Nokia models are currently in stock at AT&T/Cingular (5 models), Verizon (2 models), T-Mobile USA (5 models). In the case of their popular mid-range to high-end GSM/3GSM (WEDGE & HEDGE) models, they are using the Flagship stores and the Nokia USA website to distribute uncrippled and unlocked FCC certified models, and selected models that are not carrier distributed are also available from members of the Nokia for Business Channel Program (Dell e.g.) and retailers like Best Buy, but these sales are still relatively small. Sony Ericsson, number 3 behind Samsung in mobile device revenue and number 2 to Nokia in profit, is also disproportionately represented in the USA. Both Nokia and SE account in the Euro and Motorola the NA market leader has a significant forex advantage when 1 US Dollar (USD) = 0.75 Euro (EUR). With the strictly operator controlled US distribution model, European manufacturers aren't especially inclined to chase share at the expense of margin in the USA, and with a strong Won and strong Yen, the Koreans and Japanese are less inclined than they have ever been to do so, particularly since both are struggling with margins, and neither has the capability to hedge the way Nokia can. << Does nok have big plans and hopes for new phones in the USA? >> Presumably they have plans for new phones for the USA beyond those that have already been FCC certified and that are being carrier certified. How big those plans are on the short term are not clear. I'm not aware of any near-term pending new mid-range or high end models that have been dumbed down to meet the specific requirements of US carriers in the manner that the Symbian S603E N75 was for Cingular. << A question I have not seen posed is: Would an ITC ban prevent nok from exporting any gsm phone to the USA since they no longer have a WCDMA lic with qcom and every phone they would export to the USA would have a 2gsm. >> Possibly, but not because Nokia no longer has a WCDMA license. No actions have been initiated by either company for infringement of WCDMA patents. << My question is: If qcom prevails at the ITC how much of a lever is this against nok? >> It's certainly a lever. How much of a lever, I'm not sure. It's also a potential trigger to similar Nokia initiated actions in the USA and on a global scale against QUALCOMM infringement of Nokia GSM, WCDMA, and CDMA essential and implementation patents. To date, Nokia has been rather circumspect in this regard, and has chosen only to assert non-essential implementation patents against QUALCOMM and has limited those counter-actions to two venues in the USA ... Best, - Eric -

To: thinkclear who wrote (5054)	8/6/2007 11:03:35 AM
From: Eric L	Respond to of 9255

Nokia Mobile Device Revenue in North America ... TC, << My understanding is that the United States represents only a small % of nok revenue, maybe 5% or so if memory serves. >> In my prior post in response to that statement I stated ... Nokia revenue (including NSN) in Q2 was €12.587 Billion ($16.94 Billion) and 4.2% of that revenue -- €.527 Billion ($710 million) was generated in North America. That response included revenue from Nokia Siemens Networks (NSN). Nokia Revenue in Q2 from Mobile Devices from the 3 divisions producing them was $12.315 Billion USD (€9.149 Billion). Revenue from North America for mobile devices (only) was $488.6 million USD (€0.363 Billion) or 3.97% of Nokia's mobile device revenue for Q2 2007. The wholesale ASP of devices sold into North America based on 4.1 million units sold in was $119, slightly lower than their overall global Q2 ASP of $121. Based on Strategy analytics estimate of 257.8m million units sold in globally in Q2, and assuming that if Nokia hadn't sold in 4.1 million units to North America some other OEM would have, Nokia's global unit share in Q2 would have been 37.9% instead of 39.1%. Best, - Eric -