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No. of Recommendations: 3
In my opinion Nokia shouldn't be included in the Rule Maker portfolio because of the nature of its products. I think that mobile communication devices, like many other products (televisions, memory chips, VCRs) will eventually become commoditised, allowing the Japanese electronics companies with their more efficient and cheaper manufacturing processes to come in and make and sell them for next to nothing. Already Japan's Kyocera own Quallcomm's manufacturing arm. Japanese firms completely dominate the market for televison sets, and unless Nokia can consistently introduce new technologies mobile phones could end up just like TVs. I'm not saying that this will definitely happen, only that I consider it to be a strong downside to Nokia's prospects. Any thoughts?
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