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Posts: 470 | Thanked: 399 times | Joined on Jul 2011 @ Croatia
#303
Originally Posted by gerbick View Post
And you're quite mistaken my friend.

Let's keep numbers simple.

I once sold something for $1.00 in a 1 million lot - so 1 million dollars, and it cost me 50 cents to make each and advertise. The margin would be 50 cents on each, so half a million would go into my pocket.

I now sell something for $1.00 in a half million lot - so half a million dollars and it still cost me 50 cents to make each and advertise. The margin would be the same, so quarter of a million would go into my pocket.

If I want half a million to go into my pocket, I would either have to sell the product for higher, advertise it less but still sell, sell more, or find other ways to cut corners if my sales were lower than before and I want to pocket the same. Or diversify. Or expand to new areas.

Nokia's not doing any of the above. Their market share is shrinking meanwhile world population is growing. They might be charging higher for certain products, but those aren't selling high. The one thing that sold in mass quantities is on the decline because of prior announcements - read: Symbian.

So what are you saying? How would you boost your margins? Talking about it but never pointing it out doesn't exactly equate to making sense. Simply stated, make sense - exactly what do you think Nokia should do?

Because right now, their profits, their share and their margins are all shrinking - mainly because now they have to license a technology whereas they used to own all of the OS's they used.
are you stupid or you dont know how to read or are you simply ignoring what i wrote? you are mixing market share and sale numbers yet again...lets say nokias market share was 100% and they sold 1 million devices quarterly and then android and ios came and nokias share went down to 30% share with symbian but sold 2 million devices quarterly, which one is better? the second situation is better and that is where nokia was when the decided to kill symbian, they were selling more devices than ever just on a much larger market, BUT THEIR SALES WERE GOING UP AND NOT DOW AND THAT IS THE MOST IMPORTANT THING, SYMBIAN WAS GROWING!

Last edited by GrimyHR; 2012-02-08 at 09:35.