Is The Sky Falling In Wireless?

The recent not-so-happy forecasts from both Motorola and Nokia has sent the wireless handset business into a bit of a funk, making many analysts wonder if overall expectations need to be lowered for the handset and related markets. It seems that so far, the general consensus is that this is a short term issue, related to issues like SARS that aren’t likely to have an ongoing impact on the market. While I agree that these two forecasts alone shouldn’t be taken to mean the end of the world, I always worry about financial reports that blame unrelated one-time events for sales slumps. It’s pretty difficult to determine if SARS is really the reason people aren’t buying Nokia headsets, or if there’s a bigger fundamental issue.

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