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bosco_pcs
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bosco_pcs,
User Rank: Light Sabre
5/19/2016 | 1:49:46 PM
Re: More than elegant IMHO
Not sure I'd use the word 'elegant' to describe it either. Certainly little if any risk. If it is a success, hooray! If not, it can disavow any culpability. In the mean time, any incremental revenue is just extra.

One caveat would be the status of Alucat's tablet. Is it part of that deal? Sprint has been trying to give it away with a sign-up but it doesn't sound like it is making a wave in the U.S. market, considering even Apple's iPad is having a declining market
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
5/19/2016 | 1:46:42 PM
Re: More than elegant IMHO
Reminds me of the way Harley Davidson licenses its trademark for apparel – even baby onesies.

One danger to Nokia here is that if the phones flop, it might damage the Nokia brand. On the other hand, even if the phones do flop, tech companies have shrugged off that kind of brand damage in the past. Customers can be sophisticated in realizing that problems in one area don't necessarily relate to problems in another. 

And if the phones are a hit, well, it'll be more revenue and reflect well on the Nokia brand, particularly in developing markets. 

 
Michelle
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Michelle,
User Rank: Light Sabre
5/19/2016 | 1:15:48 PM
Re: More than elegant IMHO
This is interesting news. I expected Nokia to quietly disappear from the smartphone market all together.
Ray@LR
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[email protected],
User Rank: Blogger
5/19/2016 | 8:39:47 AM
More than elegant IMHO
THis is more than elegant, I think.... Nokia will drive revenues with little risk and certainly no capex risk.

From a business perspective, the main risk for Nokai I can see is that, wit this being a 10-year exclsuyive deal with HMD, it has put all of its eggs in one basket... if it flops then it risks having a stagnant revenue stream from that brand and IPR... but I sense that there is confidence that, at least in the feature phone market, this  is going to fly. 


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