Nokia (NOK) Sucks More Air Out Of The Handset Room (AAPL)(MOT)(RIMM)

Telecom & Wireless

Published: July 17, 2008 5:39 am

Nokia (NOK) had a stronger second quarter than most people expected. According to The Wall Street Journal, "Nokia said sales rose to €13.15 billion from €12.59 billion. Analysts expected sales of €12.86 billion."

Just as important, Nokia’s global market share rose to 40% from 39% last year and the company shipped 122 million handsets. A great deal of the improvement came due to sales of units in India and China.

This is not exactly good news for companies like Motorola (MOT), RIM (RIMM), and Apple (AAPL). The US and EU are becoming modest to zero growth markets for handsets. Improving prospects in the areas where they market most of their products won’t be of any help this year.

Because of its existing trouble, the Nokia news is probably worst for Motorola. It has never replaced its hit product, the RAZR. The iPhone and Blackberry are taking the high end of the market. Samsung has taken a lot of the middle market.

The earnings news signals one other thing. Getting sales for the new iPhones and Blackberry products will not be a cake walk.

Douglas A. McIntyre

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