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Article

Title: Mad Dash for the Low End

Author: Ewing, Jack Article Type: Product Analysis
Source: Business Week, n4071 p30(1) Publication Date: Feb 18, 2008
  ISSN: 0007-7135
URL of Publication: http://www.businessweek.com

Cell phones are not just for people in wealthier companies, and even those who live on just a few dollars a day feel the need to stay connected. Low-income men and women around the globe make up a huge demographic of cell phone users, and Nokia is the company that currently does the best job of catering to them. The Finnish company has about 40 percent of the global handset market with many of its customers coming from the poorest places in the world. It has a whopping 66 percent of the market in Africa and 45 percent of the market in Asia. The company specializes in low-end phones that do not have all the bells and whistles American customers have come to expect. Nevertheless, even the low-end phones are beginning to incorporate digital cameras and music players. Nokia needs to be vigilant in regard to its dominance, because other companies such as Sony Ericsson and Samsung are beginning to break in, especially in light of Motorola's difficulties of late; Motorola management may sell the handset business.

Companies:
Motorola Inc Nokia Corp
Samsung Electronics Co Ltd Sony Ericsson Mobile Communications AB

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