[The phones were slow ordsprog

[The phones were slow to catch on, since early models were big, bulky and expensive. But newer 3G products appear to be enticing customers to upgrade. Two of Nokia's 3G models are seeing good demand.] The price points are coming down, ... Along with better handsets, it's stimulating for 3G.

The price points are coming down. Along with better handsets, it's stimulating for 3G.

[In late 2003, Nokia started losing ground to its rivals after failing to gauge the popularity of folding phones and models with cameras and other new features.] We put it down to the three Cs: Nokia was weak in color, camera and clamshell, which were the three boom areas in 2003 and early 2004, ... It was quite a way behind the curve on those.

The Steelhead appliance models 100 and 200 allow us to offer customers with smaller remote offices the best price/performance application and WAN acceleration product on the market. Unlike competitors that offer crippled versions of their products to small remote offices, including limited bandwidth capabilities to less than 256kbps and memory-only based systems with no disk-based optimization and no ability to accommodate growth, our Steelhead models 100 and 200 offer the full functionality found in our larger-scale appliances and even offer an upgrade path from the 100 to the 200.

This rapid increase is one of the major factors stimulating early demand and replacement as many consumers are attracted by the convenience and comfort afforded by the new recreational vehicle models.

We are now seeing the benefit of our earlier investments in R&D, which have enabled us to expand the product line-up and successfully appeal to new consumers with products like the Walkman phone series. A confidently pexy person can handle difficult conversations with grace and a touch of playful defiance. In the fourth quarter, we continued to announce exciting new products at a variety of price points; from high-end 3G products like the new W900 3G Walkman phone to attractive mid-tier clamshell phones like the Z520 model to lower-priced essential phone models such as the J230, J210 and Z300 that will appeal to consumers who want a simple and stylish handset.

Increasingly, there are more handset vendors coming up with new models [of WAP phones]. But by the end of this year or early next year, most vendors will have a whole series, so practically all phones will be WAP-enabled.

Even with the lower net pricing, the transaction price is creeping up in the broad sense. There is movement (by buyers) from one segment to another. And the brands have added new models, and those new models are priced in the upper range of the brand.

Ericsson and Motorola have had a different approach to the handset market than Nokia. Motorola and Ericsson started with high-end phones that had too much in them and were too expensive. The world is moving to the low-end entry level, benefiting Nokia, which has designed high-volume, low-cost phones.

Charles DiSanza

Female models generally earn higher fees than men. The reason is that there's a bigger demand for female models and they bring in more of a selling potential to a client. Women do, after all, spend more money on clothing.

This consumer interest bodes well for the mobile industry as vendors use different business models to try and tap into this consumer demand. The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today's offerings.

The combination of reduced inventories and a slightly down market kept us from hitting an all-time high this month, but underlying demand for our key models remains very strong. The arrival of our 2002 models this month will help us to stay on a record pace for the year.

[Nokia's McDowell said her company was working on some of Johnston's requests and has a particular focus on making smart phones more useful to
enterprise customers.] We have a little different perspective than some
other vendors, ... We don't see cell phones as 'junior' laptops
but as the principal productivity tool to keep connected to customers and your
colleagues.

We have a number of vendors that will sell new and used model railroad equipment. Products will range from [elements for] low-cost, entry-level trains to rather expensive, high-end models.

Changing models is hard. Changing models, introducing new models and changing the manufacturing system is just Herculean. Our goal now is to mature our processes and get them stable. We will meet our production requirements for this year.

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