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#305
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.
The mistake in your argument is that while market share was declining unit sales were growing, because of the growing market. That happens to every market leader, like the iPad. There is nothing wrong with that.
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