Technology Industry
Industry: Email Alert RSS FeedHandsets under $20 to drive volume.(Upfront)
RCR Wireless News, January, 2007
Byline: PHIL CARSON
Big opportunities come with big risks, particularly in chasing the future of the cellphone business.
One opportunity, pursued by the market's two giants and their challengers, is to deliver ultra low-cost handsets into the hands of low-income subscribers in developing markets. The upside to this strategy is based on establishing one's brand and, presumably, harvesting profits when entry-level subscribers upgrade their handsets. The risk is that selling low-cost handsets drags down average selling prices and profits, particularly if mature markets don't deliver strong sales and relatively higher margins. But the flip side is that, if one doesn't get a foothold in the emerging markets, there's no future.
Nokia Corp....
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