Where does this leave Nokia? Despite tough market conditions and continued concerns about prices and margins, most analysts believe the Finnish giant will continue to outpace rivals.
"Nokia can handle the price competition better," says analyst Jari Honko with Helsinki-based brokerage eQBank. "When problems hit, they hit Motorola harder."
In part, that’s due to Nokia’s formidable scale. "It has a broader product line and better geographical mix than Motorola does," says analyst Hyoty of FIM Securities. Nokia also invested earlier and more aggressively in emerging markets from China to India to Latin America, which gives it "enormous volume and distribution advantages," Hyoty adds.
Nokia is also investing more heavily in design to make its phones more appealing, and scrambling to fill out the weak mid-section of its product portfolio.
Source: Business Week
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