21 June 2008

Nokia Blindsided By iPhone, BlackBerry!
No 'Credible' Answer?!?

Finnish cellular phone giant Nokia, which has led the cellphone market for years, is getting shelled. Shares are down 3.4% today to $24.55, and are down 28% from recent highs in April.

Why? Well, for one, the Western European cellphone market, where Nokia does a lot of business, isn't doing so hot.

But now Nokia has Nokia-specific problems, too -- it's about to see a lot more competition at the high end of its business from Apple's iPhone 3G and new 3G BlackBerry gadgets from Research In Motion.

Earlier this week, Nokia unveiled two new phones designed to compete in the high-end, business smartphone market, the E71 and E66. But AmTech analyst Mark McKechnie says the new phones still aren't a "credible response" to RIM and Apple. (Based only on the pictures we've seen, and what we know about the strength of the iPhone and RIM's email system, we agree.) And McKechnie says European brokers are now "voicing concerns of competition at the high-end," too.