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

To: marginmike who wrote (994)	9/17/1998 11:53:00 AM
From: tero kuittinen	Read Replies (1) \| Respond to of 34857

Qcom isn't dropping, because Alcatel and Ericsson are European telecom stocks - investors bundle them together with Nokia. I don't really think the big issue for these three companies is CDMA right now. Korean market is inaccessible to Western manufacturers and there are about 5 million CDMA subscribers outside of Korea. In contrast there are 110 million GSM subscribers next December and over 200 million GSM subscribers in December 2000. That's the pot of gold... and Ericsson has plenty of room for growth, if they can get their handset act together. Alcatel and Ericsson are stumbling at a crucial moment of GSM expansion. Both lost profit growth momentum in 2Q, while Nokia's profit growth zoomed to 70%. Both are having trouble with infrastructure sales, while Nokia's growth is topping 40%. Sooner or later investors realize that these three companies are not siblings, at the very latest on October 23. It took a while for people realize that Nokia is not Motorola, now they have to learn that Nokia is not Ericsson, either. Most learning experiences are painful. But yeah, I agree that it's good for Nokia to be in CDMA market as well. IMO, the real profit machine is GSM, but there is no reason to play the CDMA field as well. Nevertheless it's good to keep in mind that both Europe and China are bigger digital phone markets than USA - and they are both growing faster than USA. People are now skittish about European exposure, which is patently absurd. Companies with low exposure in Europe and China will ultimately be at a disadvantage. Tero