Linked by Thom Holwerda on Fri 29th Jan 2010 22:42 UTC
PDAs, Cellphones, Wireless During the iPad presentation, I was rather perplexed by Apple's claim to be the largest mobile device company in the world. Apparently, I wasn't the only one scratching his head, as Nokia itself, and even the Financial Times, is calling Apple out on its juggling with figures and definitions.
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RE: how you define it
by JonathanBThompson on Sat 30th Jan 2010 04:09 UTC in reply to "how you define it"
JonathanBThompson
Member since:
2006-05-26

Well, that's an interesting statement:

What monopoly would be created?

While Nokia sells lots of cell phones by pure volume, they are far from a monopoly in cell phones, period: there are many meaningful competitors, and most of their phones are the rather low-end inexpensive ones: the ones that will sell far more due to being affordable for a larger population.

Apple sells a decent number of iPhones, but they are hardly the largest seller of those, at least not nearly enough to be a monopoly of smart phones, of which Nokia also isn't nearly close enough in this end of the market.

Sure, Apple makes computers and iPods and the Apple TV and a certain amount of software, but Apple's share of the computer market, the OS market, and living room market in the form of Apple TV isn't remotely close to achieving anything close to a monopoly in any of those areas, even if added to what Nokia makes: there's no potential for monopoly even if you merged them.

All that being said: Nokia is a low-margin company, compared to Apple, and Apple simply isn't interested in such a business model. If Apple were to acquire Nokia, it seems most logical they'd divest of most of the low-end products to whomever had the money to buy it off them, and do the whole thing purely for the sake of owning patents that won't cause issues. But, really: are those patents worth THAT much long-term? A lot of them are becoming dubious in value as 4G comes online anyway.

Reply Parent Score: 2

RE[2]: how you define it
by siimo on Sat 30th Jan 2010 04:22 in reply to "RE: how you define it"
siimo Member since:
2006-06-22

Nokia has some 4G patents, although not a leader

http://www.abiresearch.com/press/1545-Qualcomm+Takes+Lead+as+4G+Pat...

Reply Parent Score: 3

RE[2]: how you define it
by TechGeek on Sun 31st Jan 2010 18:17 in reply to "RE: how you define it"
TechGeek Member since:
2006-01-14

I think Apple buying Nokia would create a monopoly in the smart phone business. I could be wrong, but I can't see the EU or the FTC allowing it. Its better by far for the consumer to have them competing. As for a buy out, it would really depend on who owns 51% of Nokia. A hostile takeover only works if you can actually get 51% of the stock. It would be like trying to buy out MIcrosoft. Bill Gates still owns 51% so he is THE deciding vote.

Reply Parent Score: 2