Thursday, April 4, 2013


Motorola (MOT: 22.50, -0.45, -2.0%) can relate to the sour commercialise reception. The numbers it released experience Thursday showed an 18% jump in fourth-quarter sales, a 68% surge in earnings per share (13 cents of which came from a Turkish telecom companys debt repayment), a 40% maturation in vigorous handset shipments and -- kiss of death -- in-line Q1 guidance. Investors response: a vulgar 8% selloff on Friday.

As for the one surprise in Nokias key, here it is: Average selling prices, or ASPs in industry parlance, declined slightly.

Thats right. Now, I know Motorola said as much in its report culture week, but seems this price decline actually is an industrywide phenomenon. Turns out, maturing sales to developed markets and burgeoning sales to emerging markets dont translate into stronger-than-expected ASPs. Go figure.

If you gather up me, investors and analysts have gotten a bit spoiled by new sales of next-generation handsets that carry fat price tags. Thing is, those spurts of variety and subsequent sales cycles come in waves -- they have for years. The general industry trend remains tilted toward declining ASPs. This should come as a surprise to no one.

But whats being overlooked here is the very real impact that emerging-market sales are having on the mobile phone industry.

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.

Ive written before about how certain(a) segments of technology, such as PCs and cellphones, are getting their second overturn as developing economies strengthen. Its something that Kevin Landis, portfolio manager of Firsthand Technology valuate fund (TVFQX: 35.81, -0.03, -0.1%) and Firsthand Technology Leaders fund (TLFQX: 20.48, +0.13, +0.6%), among others, discussed with me last month, and its worth paying attention to.

Nokia is a perfect manikin of this. Consider that the company saw a 23% increase in unit handset sales to Europe -- its largest market by far...

If you want to get a full essay, aim it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .

No comments:

Post a Comment