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

To: PoorRich who wrote (1000)	9/21/1998 6:43:00 AM
From: tero kuittinen	Read Replies (1) \| Respond to of 34857

I think this thread needs more testimonials like PoorRich's. This "sold out" phenom is incredible. I've heard similar anecdotes from China, USA and several European countries. What really floors me is the fact that the 6100 line was introduced in February. Everything points to massive production ramp-ups at Nokia (the most recent number for production increase of electronic goods in Finland is 45% and that is dragged down by non-Nokia companies) - how come there are still spot shortages in September? Right now all three most recent Nokia phones have "sold out" status in several markets: 6100 phones, 5110 and 8810. They cover pretty much the entire price spectrum. I'm going to visit New York, Philadelphia and NIH next month and conduct a strictly objective Eastern Seaboard Mobile Phone Retail Outlet Survey (I know... it's the geekiest possible thing to do when visiting NY). I've been waiting for the price of the 6110 to come down so I can buy it. It hasn't. Every previous Nokia model has had first price cuts around three months and deeper discounting after six months. It's unprecedented to have this kind of price stability in mobile phones: shrinking margins has been the traditional boogyman. Every passing month the unit cost of these phones goes down as the volumes go up. Evidently Nokia is pocketing the difference instead of passing it onto the customers. I'm not sure whether I should be pissed off as a prospective buyer or elated as an investor. Probably both. Meanwhile Ericsson and Motorola are fighting a grim defensive battle. Ericsson has set the price of its new dualmode phone at rock bottom - 300 US$ below Nokia's. Nokia's competitors gotta do what they gotta do to stay afloat. But the danger they are now flirting with is obvious: cheapening of their brands. They are stuck with these cheapo models even after they launch new ones, right up to the next millennium. Tero