This 2-page Reuters article describes the declining cell phone market and presents a case for Finnish giant Nokia emerging from the stumbling economy less battered than its rivals. I tend to agree. The Finns are known for their methodical, conservative approach to business and I believe that trait is the main element enabling Nokia to weather the economic storm.
As on-target as I generally found the article to be, though, the author did neglect to mention that a large part of Nokia’s resilience has been and will be due to its success in emerging markets. Instead, he makes this comment:
In a shrinking market, handset makers are battling for the only remaining growth business — smartphones — where they face newer rivals such as Apple (AAPL.O), with its iPhone, Blackberry maker RIM (RIM.TO)(RIMM.O) and Google (GOOG.O).
That’s only true in certain regions. There are still plenty of opportunities at the mid-to-low end in China, India, et al. That was worthy of mention but oddly missed.
Regardless, this is an amazing result for a company that only relatively recently got into mobile communications at all.
Just for fun, here are the current values (in US dollars) of my communications-oriented investments, as I write:
I don’t want to even talk about some of them, like MOT. But I see NOK at this price as being a buy. It’s always been good to me before in this zone…
Disclosure: author is a former Nokia employee