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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (51666)	3/4/2008 6:39:39 PM
From: slacker711	Read Replies (2) \| Respond to of 543140

CDMA and GSM require different infrastructure. That is like cars requiring different roads. Of course that leads to problems. But fundamentally, the standard of living of 300M does not depend on whether the underlying technology of their phones is GSM or CDMA. Either will work, and either can be as cheap as the other from the consumers view. Your concern should instead be about proprietary systems impact on economies. My point is that despite selling 200 million units a year, the economies of scale still matter. If your contention that the economies of scale going from 300 milllion to 6 billion were flat, this wouldnt be the case. The market for components like RF power amplifiers illustrates this point. They are basically commodities, but the CDMA power amps cost more and are less integrated than their GSM cousins. The GSM market still benefits from selling into a vastly larger market. The increased R&D and manufacturing scale still gives benefits even when you move beyond your 300 million threshold. If you wanted to look at it within just the GSM market, you can see the same point. Nokia's economies of scale have been one of its prime advantages over its competitors. Lower costs, greater access to markets, greater leverage over both customers and suppliers....all despite the fact that their competitors are selling like Samsung and Motorola are selling more than 100 million units a year. Slacker