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Nokia Corporation Message Board

  • onmythirdmillion onmythirdmillion May 13, 2013 8:46 AM Flag

    You have to understand that the Carriers

    like Verizon WANT a third option...BIG TIME! They are tired of AAPL and Samsung dictating thier profit margins...monopoly's by just 2 major suppliers is not good for the carriers...they need an ax to hold over the head of AAPL and Samsung so they will try hard to make Nokia a solid third option...

    it's coming...many positives and more to come from here on out...

    Sentiment: Strong Buy

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    • big time lie or put real effort on selling Nokia. so far I see only Nokia is pushing hard by 928 with a bigger-than-margin discount. What has VZ and T been doing in terms of promoting a 3rd platform.

    • I've heard that before - the the carriers want the third option, and will promote W8 to get the third option.

      I think what we've seen is the reverse - the carriers telling MSFT that if MSFT want into the Apple/Samsung club, they'll have to pony up $ in the form of favorable terms to the carriers. The carriers will play Apple/Android/W8 off of each other.

      Then there's the T-Mobile plan, where you buy your own phone, no subsidy. That will hurt Apple, and help Android and W8. I think W8 will benefit more as the OS and phones are generally superior to Android phones.

      In addition, while the US is a major player in the global market for smartphones, it is a global market, and the soap opera playing between carriers and manufacturers is only one ring in a very large circus.

      In short, what you say is plausible, but not certain - there are other ways to analyze the relationship between the US carriers and manufacturers. What things will look like a year from now is anybody's guess.

      • 2 Replies to clcellve
      • I agree.

        The only point of carriers gunning for a competitive third option is lower prices. The breakdown cost estimate for the ingredients of a Lumia 920 is slightly higher than an iPhone 5. To make a 920 more economical for carriers as well as consumers, Nokia will be forced to work with razor thin margins indefinitely.

        Why give a hoot about carriers and the subsidy models in place? They may complain, but as things are, their revenues and profits make several of them some of the most successful companies in the world. The best selling phone will always enjoy the highest tier subsidies, no matter who it comes from. Right now that's Apple and no one else is close their 80M iPhones sold over the last 2 quarters.

        I say leave the carrier subsidy models in place and work on making Nokia flagships the most desirable phones. Instead of taking the deep margin hits it takes for carriers to get happy about a third player, spend it on marketing. Nokia have to compete with massive advertising budgets, like Samsung's 15B.

      • Another sobering opinion. Concise and good summery. Of course, we all hope it will be much better this time. Let's wait and see...

5.81-0.05(-0.85%)Jul 25 4:03 PMEDT