Feeds

Can cellphones kick start the IT revival?

Nokia's good news lifts cellphone manufacturers

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.