Asia Business Consulting

From Information to Strategic Knowledge by Asia Business Consulting ( What kind of jewels can you find in the news. And how great it is to have a company that fully uses those to support its primary research and consult your company strategically to really improve your business. This blog supports your business already. For more, talk to us - Asia Business Consulting. A better way to do business.

Tuesday, October 11, 2005

How is the mobile handset business going?

It's the usual story. A handset maker, in this case Nokia, is reporting ongoing strong growth numbers in the handset markets, driven by strong demand from markets such as the Gulf and Africa.

The article also states that Nokia would love to see their margin growing again. When the company lost market share after missing market trends, they lowered their margins (partially by introducing low-cost models) in an effort to stay atop the market. As a consequence, margins fall from the region of 17-18% to about 13%.

The interesting piece of this article is the aim of the company to grow back its market share to 40% - there is nothing more devastating for employees to work in a company that loses share, so now they want it back. It clearly is a stretch goal, and tough to achieve, with competitors such as Samsung and Motorola rolling in the dough as well, in addition to new competitive forces emerging all around them.

Will any of the handset makers go on the acquisition trail? Or get acquired or even exit the business? That is the question!

(By Asia Business Consulting)