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I agree with the fact that Nokia does far more than phones, but I dont agree with the comparison with computers. You said that the components that constitute mobile phones are or will be commoditised. That could see the mobile phone hardware industry turning like the PC industry - extrememly tight net margins, and low inventory turns. Fair enough, Kyocera is hardly a dominant player, but it does have better access to Asian markets, and there is nothing to stop the likes of Sony and Matsushita (both companies with strong brand names)from entrering the arena. They would have better access to the necessary components, and despite efficiencies from Nokia, I wouldn't be one to bet against the Japanese production techniques any day of the week. As an aside, another thing to consider is the performance of stock price. Even if Nokia remained the dominant manufacturer of cell phones (as GM has remained the dominant car maker (measured by revenues)), it might not see the best performance. At the moment GM is valued at about $57 billion dollars, whilst Toyota, a company with lower revenues, has a market cap of $162 billion dollars -nearly three times as much. I would like Nokia a lot more if it did something that wasn't related to wireless communications as well. I just don't think that it will be able to maintain top performance over all ten years and beyond - but I'm not going to be as foolish (or maybe that should be something else) to suggest that it won't. Either way, I'm glad to see that someone can be bothered to reply.

Bezhan Salehy
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