On Sun 9/9/2001 4:10 AM
Jorge @ allinabill wrote:
>> It is an ongoing battle. Between operators' purchasing power and
Nokia
>> leveraging on consumers' demand for their products. Nokia has worked
very
>> hard to build brand awareness in Europe.
Nokia has indeed done a fantastic job at that. But they didnt really
have any solid competition yet.
The Japanese handset manufacturers are some of the best brands for
electrical goods in the world. And they have financial resources to do
whatever it takes to get into that market if they want to and its a fair
bet that they do.
>> Operators may have a hard time pushing other phones. Nokia's brand
loyalty
>> is too strong but at the end of the day operators decide which phone
to
>> subsidize and no brand loyalty is too strong when you have to pay
$100 more
>> for it.
Dont forget that Sony was willing to sell Playstation at a loss in order
to ensure market lead in that space. The mobile handset is a MUCH
bigger market and its moving in the direction of their traditional
markets (PDA's, games, walkman etc.) making it a defensive move as well.
Not being in Europe I cant judge how strong the Nokia brand truely is
but I think it cound be put to the test very soon.
>> On the other hand, it may still work out for Nokia because 3G phones
will be
>> sold first to early adopters and status segments which are brand
loyal. The
>> first 3G phones also unlikely to get subsidies from the operator.
Or.. agressive new competitors will see this as an opportunity to
undercut Nokia
Regards,
David Davies
www.intadev.com <http://www.intadev.com>
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Received on Sun Sep 9 05:59:37 2001