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Thread: Nokia Q4 2009: Smartphone market share 40%, and 39% global market share

  1. #91
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    Quote Originally Posted by Jonnycat26
    True, but both RIM and apple make more (profits) than nokia. That's what happens when you make better phones and can charge more. Or, to put it another way, Nokia dabbles in the high end market (and mostly fails). RIM and Apple own the high end and never seem to fail.
    I understand the point made here, but believe the differences in profitability would be more a part of the advantages of cheap labor (and products) from manufacturing in China as opposed to a country with a skilled labor force and high end quality product such as Finland or Europe in general.

    Can not compare rotten apples to juicy oranges can you now!

  2. #92
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    but i believe nokia has moved a bunch of their manufacturing out of finland and into china. i dont think they are at a disadvantage with manufacturing costs.
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  3. #93
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    that does not really explain the profit difference. its more about the lack of the highest priced compelling models in the last year or two. that will most likely be fixed late this year and next.

  4. #94
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    Quote Originally Posted by RogerPodacter
    but i believe nokia has moved a bunch of their manufacturing out of finland and into china. i dont think they are at a disadvantage with manufacturing costs.
    A change to a manufacturing facility with labor costs that are a fraction of those seen in the previous factory etc should add a bunch to the bottom line profitability.

    How it affects quality and feel are different concerns, and I know I am not the only one who favors purchasing high quality products that are made by people earning a fair wage, and working under acceptable conditions etc.

    What I do have a problem with is buying expensive products that were made in China, and this is not only about quality, but also about value and not lining the pockets of every single international corporation with my hard earned dollars just because they have a good advertising campaign etc.

    Now in fairness the quality of product coming out of the "better" factories in China has improved, and not all products are of dollar store quality anymore (an example is my Canon digi camera, but can you say BILLIONS invested by Japanese and other companies to finally get these results) but somehow until things change greatly in labor rates and many social and political issues with China I will avoid their products as best I can unless of course the combination of political and corporate pressures has made products from other countries either not affordable or even available where there is no feasible choice.

    Wow sorry bout the rant on that, but I have lost count of all the absolute garbage I have from the past and how many items that did not last worth a damn and all in the name of exploitation and increased profits, shame on them all LOL

  5. #95
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    Quote Originally Posted by Viipottaja
    that does not really explain the profit difference. its more about the lack of the highest priced compelling models in the last year or two. that will most likely be fixed late this year and next.
    Have to agree on this as well, but lets not forget even at a $1,000 price point there is more profit available when the average unit manufacturing costs are reduced.

    I do not know specifics on consumer electronics, but I do know on products in the industrial sector it is not unusual to reduce manufacturing costs by as much as 80-90% and even more. Sure there may be other costs involved with working with a partner who truly owns all your investments in their country, and I do not believe anyone in the west who has not experienced partnering with communist China can even begin to understand the entire process.

    Still a combination of higher price points, and decreased manufacturing costs will definitely increase profitability for the short term at least.

  6. #96
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    Quote Originally Posted by Multiplier View Post
    Yes the dissonance between the results and the often absurd Nokia bashing on these forums is rather amusing.

    Still while the overall results are pretty good the N series sales have dropped quite sharply. Hopefully Nokia will get the message and pump out some top N-series devices and get back some of that N95 mojo.

    Despite the rise of touch I think there is still quite a lot of life in the dual-slider N95 form factor. I would like to see an N87 with a state of the art camera with xenon along with 32GB internal storage plus card-slot and an FM transmitter. And while the N900 is a promising start, Nokia will have to raise the bar with N920 and Maemo6 if it wants to compete with the best Android phones.
    Flashback Wednesday. I remember how funny it was with all the Nokia fans defending the company to its death. Q4'09 is pretty late. The Droid had already launched, and the iPhone was in its 3rd iteration.

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