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Author SAD SE 2007 Portfolio-Hard to digest facts
DragonEye
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Posted: 2007-10-18 19:58
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On 2007-10-18 18:19:13, Arne Anka wrote:

On 2007-10-18 15:51:49, DragonEye wrote:
... lowend, marketshare grabbing phones.. that everyone knows doesn't make any money...


Its not entirely true. That's actually where Nokia makes lot of money, but you need to sell them in very large quantities to earn decent money I would guess.

In Q3 Nokia sold around 111 million units of which 9 millions were N series and 2 million E series phones. This means that 10% of all Nokia phones sold where more exclusive/expensive phones while the rest were simpler/cheaper models. The drop of ASP from 90 to 82 EUR further confirms this, as well as Nokias own statement that sales of phones below 30 EUR have become a significantly bigger part of their total sales.

For SE, due to their small size its clear that their profit depends more on high end phones than for instance Nokias.

[ This Message was edited by: Arne Anka on 2007-10-18 17:23 ]


sorry i was referring to margins... which is what i meant when i said the lowend make no money...

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C905
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Posted: 2007-10-18 21:44
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On 2007-10-17 13:15:56, arunvc wrote:
@razec

Sorry but there are too much evidence from SE centric forum like esato
Here are few from esato
1)
I just bought this phone
Quite impressive but when the meanwhile i actiavted the phone camera mode,
it make me dissapointed.
Cyber-Shot is just the name but the reality the photo is not that nice as expected.
Video recording is sux,sux to the max!!!
Gosh,i'm so regret to get this phone..
The screen resolution sux,colours sux...
The only thing that impress me is the outlook..
i recommend u guys better get a N95 because i compared photo with my friends mine looks sux because the colours is just 265k :/
ill get a N95 and sell off this outdated phone

2)from esato
My own personal view is that yes there are a few bugs in the software, but you get this with every new phone and not just this one.

Regarding the Camera problem, I have seen a couple on hear mention the problem with the Camera Shutter not working correctly,

3)From esato
Sizewise, it feels slightly more bulky and someone commented earlier that I
had a new brick

4)Esato
Is it only mine??? But the back cover is kinda loose close to the battery flip. Feels like a cheap

5)Esato
I've emailed SE, so have to wait to see what their saying... But if this is the new standard, SE will sink pretty soon

6)Eato
It's the same on my K850i...and it squeeks if you press the back cover just beneath the speaker

7)from GSM Arena
The design of the battery cover is a nice novelty, but we think it has one disadvantage. The lower end of the rear panel wobbles noticeably when typing on the keypad.

esato
Posted: 2007-10-15 22:44
i had a chance to hold the handset yesterday.i feel the buttons on the handset feel too cheap and plasticy

9)I used a K850 yesterday , and the same thing happened with me while i was typing a message , a little sound that kept on coming whenever i was pressing a button ...

10 esato
I din´t like it either, not at that price.
Uncomfortable buttons and a fingerprint magnet.
I really hope there will come a K860 or something.

11) have to say I'm not a fan either, put mine straight on eBay.

12)the bit to the left of the light sensor if you look at the phone from the back (lenghways) when you push it in squeeks

13)ugh, this sounds crap, currently have a k810i which i love to peices - my work offered to get me a company phone of my choice, so i thought of going for either a k850i or a p1i, looks like ill be going for the p1i! any word about this being a bad batch or it getting sorted?

14)Never liked the phone from day 1 when its spy pic started to surface in the rumors section. I remember hoping it wouldn't get to be a working unit and I remember many others beings worried as well. Now the design has actually been approved, and my nightmare came true. I don't know about its ergonomics or functionality but it's not an issue to me when its shell design failed to meet my beauty-o-meter minimum to begin with. Simply ugly, only next to E90-now that's a phone I'd never want to be caught dead with, but that's a different topic.

15)don't like that small hinged cover because if you drop the phone on the floor and it fall on this cover, it will break.

Think i'll stick with my k800i for a while.


16)the camera shutter. I think this problem is a batch problem, I had it occur to me and so has one other member on here I think, and I believe that member also had trouble with a sqeaky casing which I've suffered with. I think the two are linked and are down to a manufacturing fault in that particular batch. If you get yours over the nxt week or so chances are that batch will have cleared through the systems and yours will be fine

17)I hope firmware tweaks can improve the image quality, because for the first time in my life, I can honestly say that the G600, Viewty and N95 all take better pictures than the K850i

18)The camera shots I've taken in my house tonight in darkish light are a little fuzzy to be honest. I'm sure a play with the camera will reveal better pictures, but it was a little dissapointing.


Sorry for small list will post few more soon


Carl zeiss is also a name. Nokia cameras doesnt live up to Carl Zeiss´ quality
ttsng
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Posted: 2007-10-19 07:39
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Nokia Q3 profits jump 85% to 2.2B
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Posted: 2007-10-19 09:43
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On 2007-10-16 12:27:55, max_wedge wrote:
While this is true in a literal sense, of all the people I know who have Nokia s60 phones, about 10% (and I'm being generous) actually even know they have a smartphone or that they can install thirdparty apps on it. Probably 50% don't even know about the task switcher. I don't know if this demonstrates that Nokia users are either a) stupid, or b) don't particularly care about smartphone features. I assume b), simply because it would also explain why SE mid range phones are also popular, despite not being smartphones.


That's so true. Literally no one around me uses their smartphones for anything more than making phonecalls, sending txts, taking pics and vids and ring fancy ringtones. They are also absolutely oblivious to the fact that theirs can be so much more thinking my P990 is the ultimate technological advancement of the century just because I'm using it to its potential
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rambo47
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Posted: 2007-10-19 15:50
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On 2007-10-19 07:39:34, ttsng wrote:
Nokia Q3 profits jump 85% to 2.2B



Lead by demand from the developing world. Looks like the low-end phones really did amount to something.
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Dogmann
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Posted: 2007-10-19 19:05
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@rambo47

Demand may of been higher for the low to mid range but that is only to be expected but of 111 million units shipped Nokia shipped over 9 million N series and 2 million E series phones during Q3 2007 that roughly 10% of devices sold being smart phones quite impressive i think. I would say this helped produce a fair amount of the profit as many of these are premium devices with prices to match.

What may be worrying for SE is that the markets they were starting to do the best in and many here where saying they were gaining an advantage in seems to have also reversed as Nokia's sales increase in developing countries is most spectacular, with Asia (including China), the Middle East and Africa all near or over the 40% growth mark compared to Q3 2006. Europe grows at a smaller but respectable 16.9%.

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Arne Anka
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Posted: 2007-10-19 19:27
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@Dogmann

Number of smartphones sold by Nokia can actually be much higher unless S60 is only used in the N and E series.

I'm not sure exactly wah you mean SE should be worrying about. Their year-on-year volume growth was 31%, mainly driven by lower priced phones, which is not bad. What SE lacked in Q3 was some new high end phone(s) to complement their range of budget mobiles.


[ This Message was edited by: Arne Anka on 2007-10-19 18:36 ]

[ This Message was edited by: Arne Anka on 2007-10-19 18:38 ]
Dogmann
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Posted: 2007-10-19 23:29
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@Arne Anka


What i am talking about is this statement from January of this Year from this thread

http://www.esato.com/board/viewtopic.php?topic=139535#post1878314

"Sony Ericsson increased market share during the quarter due to the continued success of products such as the K800/K790 Cyber-shot™ phone and Walkman® phone line-up. Average Selling Price (ASP) was slightly higher than expected due to more favourable than expected market conditions and continuing strong demand for Sony Ericsson’s hit model handsets. Particularly strong growth in emerging markets in Latin America and Asia Pacific, as well as in Europe, illustrates Sony Ericsson’s success at expanding the portfolio to increase market share in new markets with attractive mid-tier products, and without undermining profitability.

Actually it's quite interesting to see what was said just 9 months ago in that thread. Also that fact that Nokia are starting to regain Market Share in the regions that initially SE was making headway in and looking to continue improving. Although i do agree SE are lacking in high end device's.


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[ This Message was edited by: Dogmann on 2007-10-19 22:36 ]
max_wedge
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Posted: 2007-10-20 05:30
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On 2007-10-17 04:32:33, mario2004 wrote:
@Max With all respect - what makes you think Se is popular? Market share below 10%. Third quarter profit dropped by a third. You call that 'popular' ?


SE Marketshare has been growing ever since SE started. So their popularity is growing also. Motorola for example are becoming less popular and SE are encroaching on their market.

Profit dropped because their profit margin has dropped as they concentrate on developing a mid-range market, but if their strategy is correct, as they increase marketshare with their "popular" mid range, they will lift profits back up again.

Profit is not a direct measure of popularity, marketshare is. Profitability is a measure of the ability to maintain marketshare over time. Within that equation spikes and lows in profitability are common.
mario2004
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Posted: 2007-10-20 07:24
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And by how much did the market share increase exactly since SE's birth? If I remember correctly Ericsson + Sony gave them a around 7% at start. Max market share was around in the middle of this year at about 9.6% and now it has dropped slightly at approx 9.3%. Even if is at 10%, that gives them the huge increase of just under 2.9999999% in what - 5years
Get serious. If you want to see a real market increase look no further than Nokia's last quarter. SE hasn't managed that 5+ years If you ask me - SE and Moto are on the way down with Samsung and of course Nokia and maybe LG going up.
goldenface
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Posted: 2007-10-20 09:05
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@Mario

Prior to the formation of in October 2001 the market share of was around 7% and falling dramatically. Sony's hardly even registered. It bottomed out at something like 5.5% a year later and since then has reached 9.5%. so get your facts right. The difference between 5.5 and 9.5 is something like what? I'm guessing, a 75% increase over 4 years?

No mean feat, by anyones standards wouldn't you say?

Not that size is everything, but I guess you'd already know about that wouldn't you?

Dogmann
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Posted: 2007-10-20 14:21
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@Golden Face

You logic is just crazy as then by your logic if i came into the market and got 1% and in year 2 it rose to 2% i have 100% growth amazing yet i still only have 2% big deal. The fact is that in 5 years they have only added approx 4.5% which is actually less than 1% a year so at this rate just another 20 -30 years and they may be No1.

@Max Wedge

Market share means nothing without profitability as anyone can have the biggest market share it's easy just sell your devices at cost. What counts is both profitability and Market share one without the other is pointless. Maybe you hadn't noticed but Nokia mange to grow both which is what makes them successful.

Marc




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[ This Message was edited by: Dogmann on 2007-10-20 13:21 ]
goldenface
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Posted: 2007-10-20 15:06
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@Dogmann

Regardless of the mathematics, for a new venture to grab market share from already established players is good going. We have seen the BenQ/Siemens venture bite the dust and Motorola take huge tumble and SE have 2 years of profitable growth.

If Nokia's share grew at the same 'rate', its market share would be even larger than what it is now.
max_wedge
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Posted: 2007-10-20 15:55
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On 2007-10-20 14:21:27, Dogmann wrote:

Market share means nothing without profitability as anyone can have the biggest market share it's easy just sell your devices at cost. What counts is both profitability and Market share one without the other is pointless. Maybe you hadn't noticed but Nokia mange to grow both which is what makes them successful.



But they still have profitablity! It didn't fall into the red. It's a dip only. You might be predicting that they will keep falling in profitablity untill they are inthe red, but that is by no means sure. My view, which is a perfectly logical one, only time will tell if it's right or not, is that the increase in sales will continue, and this will fund a rise in profits by the this time next year (or earlier). Don't forget the fall in profit was accompanied by an increase of 31% in sales. The sales are lower margin due to being mid-range sales, but if they keep the growth in sales going, then the profits will start to come back up again.

Anyway, I never said that marketshare was the ONLY thing that drives profitability. Obviously you need to have a product that is selling with some sort of profit margin. But if you sell a high number of devices with low margin, you can still make a lot of profit.
mario2004
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Posted: 2007-10-20 21:20
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Yes, indeed they increase the sales by 31% compared to last year this time. While that may sound like a lot, any market analyst will also look at the overall market growth over the same periode. If you substact that from 31 you'll see what the 'real' growth was. I personaly think the people are getting a bit too much of 'cyber shot' and 'walk man', even more so if they see cellphones without this brand names taking pictures and playing music just as good if not better.

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