Feeds

Can cellphones kick start the IT revival?

Nokia's good news lifts cellphone manufacturers

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Cellphone stocks rebounded today on the back of a bullish earnings estimate issued by Nokia. The market leader, which accounts for one in three of all mobile phones sold, said it should beat its revised figures for the current quarter, and said it expected to shift between 105 and 110 million handsets in Q4 2001. In turn, that means that Nokia's GPRS handsets are being well received by the carriers. (Nokia is the last major player to market with packet data-capable phones).

So why was Nokia's good news reflected on its biggest rivals? In a word, demand.

Despite reduced subsidies from carriers, which ought to make this season's phones more expensive and so less attractive, than their predecessors, Nokia's volumes are holding up and its margins are heading North. And that means that the public's phone fancy could be more than just a fad.

It offers proof that consumers are indeed trading in last year's models for more sophisticated phones, rather than sticking with what they've got, or even downgrading. And so it gives plenty of encouragement to the school of thought that suggests that people will use their phones for more than just voice calls.

The jury's out on that one, but the appetite for new, fancier devices and the continuing explosion of text messaging suggest the idea has merit.

It also drives a stick between the spokes of the great commoditisation argument, which suggests that the phone business will become a low-margin box-shifting business, like today's PC. Nokia is staking much on the counter argument, and devoted key portions of its Capital Markets Day in New York last month to persuade investors so.

Now it's too early to suggest that the cellphone industry will lead the rest of the tech sector out of recession. But from our latest rip through Europe, the smartphone/wireless data business is very much seen as the new economy here, and we know how just how scarce optimism is back at our San Francisco base. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.