solanky 0 Report post Posted June 23, 2006 Hi Friends. Today I have read this bad news. See what happens. Nokia to stop CDMA phone production Financial Express, Reuters FINLAND, JUNE 22: Nokia, the world's largest mobile phone maker, said it would stop making phones using the CDMA standard and had scrapped plans to produce them with Japan's Sanyo Electric Co. The Finnish company said on Thursday it would pull out of CDMA phone manufacturing, which it sees as a shrinking market in the longer term, though it will continue to offer to sell Nokia rebranded CDMA phones produced by contract manufacturers in the North American market, where the standard is popular. CDMA is the less popular wireless telephony technology, used by around 25 to 30% of all mobile phone subscribers, and competes with the GSM standard used by around 70% of the world's 2 billion wireless subscribers. Though Nokia holds the number one spot in global handset sales, built on its strength in GSM which it helped to invent, the Finnish company has trailed in CDMA. The Nokia/Sanyo venture, announced in February, had been intended to develop and make mobile phones using CDMA, which dominates in the United States and is popular in parts of Latin America and Asia including Japan, India and China "It's a purely pragmatic business decision and we part as friends", Kai Oistamo, head of Nokia's Mobile Phones business unit said. "Together, Sanyo and Nokia together would have been close to the No. 1 CDMA handset manufacturer. Assuming good growth we would have had a viable position. But prospects in CDMA are declining," Oistamo said. Samsung Electronics Co. Ltd. is the leading CDMA handset manufacturer by number of handsets sold. Nokia said it will take a 150 million euro ($190 million) charge in its third-quarter accounts for restructuring its CDMA operations expects the changes to boost its operating margins. It will end its own CDMA research and manufacturing by next April and is reviewing the options for its CDMA infrastructure and assets, after deciding against the Sanyo venture. Share this post Link to post Share on other sites
ani_meher 42 Report post Posted June 23, 2006 Damnit. I hope this does not mean that the planned 6275 etc bunch is cancelled. Share this post Link to post Share on other sites
kshah 452 Report post Posted June 23, 2006 (edited) Infact nokia is going to transfer its CDMA technology to Sanyo. And they are going to sell Sanyo handset under nokia brand (now scrapped). It seems people are turnig away from CDMA. And thats the reason it seems why ADA is contemplating an idea of GSM. Qualcomm is charging 7% royalties. Its no small sum. It must be remembered that even EVDO and WCDMA are under control of Qualcomm. So prices of EVDO and WCDMA will ot be less in anways. Edited June 23, 2006 by kshah Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted June 23, 2006 well guys so the gsm handsets with 3g wcdma will also give royalties to quallcomm? Share this post Link to post Share on other sites
Puneet 0 Report post Posted June 24, 2006 Yes. Royalties are to be paid to Qualcomm for WCDMA phones too. However, the extent is lower, as WCDMA is not a technology built by Qualcomm, but is built up on some basic patents which lie with Qualcomm. Refer to article on WCDMA on wikipedia. Share this post Link to post Share on other sites
Utsav 0 Report post Posted June 24, 2006 Is it applicable all over the world or it is related to Finland only? Share this post Link to post Share on other sites
solanky 0 Report post Posted June 25, 2006 Is it applicable all over the world or it is related to Finland only? All over the world. Share this post Link to post Share on other sites
clinton 0 Report post Posted June 25, 2006 Nokia will exit CDMA phone business by April 2007 http://www.betanews.com/article/Nokia_Call...Deal/1150993303 Nokia to exit from CDMA manufacturing http://www.dnaindia.com/report.asp?NewsID=1037085 << Topic Merged >> Share this post Link to post Share on other sites
Arun 795 Report post Posted June 25, 2006 Qualcomm Addresses Nokia's CDMA Ramp Down Plans Wireless Week June 23, 2006 CDMA2000 is alive and well, according to Qualcomm. The company is attempting to alleviate fears following news that Nokia and Sanyo are pulling out of their planned CDMA joint venture and that Nokia is scaling back its involvement in the CDMA handset market. Nokia decided to dissolve its CDMA venture with Sanyo because the handset manufacturer no longer views it as a viable business option. Nokia also points to increased emerging market competitive pressure for its decision. "In view of Nokia's existing small presence in CDMA2000, we do not believe that Nokia's decision to ramp down will have any impact on the continued growth of CDMA2000 or any adverse effect on Qualcomm," said Qualcomm's Steve Altman in a prepared statement. Altman added that Qualcomm plans to "continue to allocate substantial resources in expanding the CDMA2000 market and we will continue to work in close partnership with our many other licensees." "There were some harsh statements yesterday (Thursday) and we're trying to clear the air on our side," Keitel said. "Various people were concluding that this was going to impact the growth of CDMA2000. Nokia had a very small role in CDMA2000." CDMA technology accounted for 18 percent of the global handset market in the first quarter, down from a peak of 21 percent in 2004, according to researcher Strategy Analytics Ltd. "Investors are concerned that Nokia's decision to pull out of manufacturing CDMA phones represents a blow to Qualcomm," wrote Caris & Co analyst Susan Kalla in a note to investors. This could give Nokia "the upper hand in its contract dispute with Qualcomm." "Despite its efforts over the past several years to increase its share of CDMA2000 handset sales, Nokia has had very little success in competition against many of Qualcomm's other licensees and chipset customers," Qualcomm claims. "In addition, Nokia has not contributed to the development of CDMA2000 around the world, preferring to focus instead on GSM where Nokia controls a dominant share of the handset market in many countries enabling Nokia to maintain high prices and margins." On the other hand, according to Qualcomm, "The CDMA2000 handset business is highly competitive with participation from many capable manufacturers of all sizes around the world...In the face of this stiff competition, Nokia's vertically integrated business model failed to capture the same dominant share of handset sales." Qualcomm contends that "Given the dependence of Nokia's business model on achieving and maintaining dominant market shares, Nokia's announced decision to exit much of the CDMA2000 business was inevitable." Altman denied that Nokia's decision to ramp down was in any way related to Qualcomm's licensing terms, given that the JV was going to operate under Sanyo's existing CDMA license. The CDMA Development Group (CDG) pegs worldwide CDMA2000 subscribers at more than 300 million, and the group calculates 152 networks in 68 countries support this base of subscribers. Qualcomm shares were down $1.80, or 4.4 percent, at one point, with more than 32 million shares trading hands. The company's daily average volume is just over 14 million. Share this post Link to post Share on other sites
Arun 795 Report post Posted June 25, 2006 If Nokia is pulling out now, these would be the last new Nokia CDMA models to be rolled out (and we can expect them to be launched in India after an year ) Share this post Link to post Share on other sites
linuxguy 0 Report post Posted June 26, 2006 Qualacomms gonna die soon lest they open up their specs.... Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted June 26, 2006 quallcomm surely will have to rethink againa nd again..now..... Share this post Link to post Share on other sites
