Reza H. Namavar

Reza H. Namavar
Contributor since: 2012
Company: Dream Mobile
Thanks for the reply, its great to hear what people like about it!
I think its unfair to say they only sell junk foods. Ultimately, a supermarket like Shoprite makes all kinds of foods, along with hygienic and other goods, available to people in a convenient location. The issue is that sometimes its easier to make junk food in smaller quantities than healthy food thereby making that food cheaper.
Keval27, its seems though that Spar hasn't been doing it as well though. What do you think?
Thank you for your comment! You're right, most American companies haven't yet realized the growth potential, but there are of course those select few who realize the possibilities and also do it well. European companies have been doing better than American companies and China and India the best-but then again its much harder to invest in Chinese companies investing in Africa. If we can find those few American companies doing it right, we will make some great returns!
Agreed!
Michael, thank you for your comment! I absolutely agree, in general African equities offer fantastic return potential. To your questions: while African companies may have different regulation, they still must comply by proper regulation. South African regulators are very well-developed and strong so there is relatively little to worry about. They have an advanced financial services industry.
They also follow IFRS, so you have a global accounting system you can work with (though different from GAAP in the US). Most companies still release an annual report so you can still sit down and read that :) Just go to the company's website and you can find it. A lot of my initial research started out with Shoprite's annual report.
BBCanada what do you like about the Z10 over the iPhone 5? (no ulterior motive, I'm genuinely curious)
Steve, thanks for your comments, apologies on the insult, my intention was to highlight the start difference between Nokia's market position across much of the world and the US where Nokia is a minor player.
You make some really good points and are spot on in the changing in the industry. Thank you for sharing.
thanks for your comments, thats a good point on Ahonen. I tried to find some corroborating evidence for most of the comments that Ahonen made. Didn't always succeed (and left many pieces of information out because of it) but in most cases there was something.
the best article for returns besides Ahonen is http://bit.ly/OUEzhH
The N9 ran Meego and sold about 1 million phones and received generally good reviews overall so I can't say it was just for engineers. The major issue was the lack of a platform with apps to back it up.
http://bit.ly/SSyCwz
Leftfield, thanks for your comment. Agreed. It still amazes me that Microsoft chose to hurt their partner with that.
Deja Vu, thanks for your comments! I appreciate it.
You're right Elop needs to be moving forward but can investors trust that Elop will be able to lead Nokia forward after making these kinds of mistakes? Nokia was much further along than RIM. Nokia launched the N9, which was in effect Nokia's next generation handset, and it received great reviews. I think this was the path that should have been followed, just executed better (which Elop could have done).
As far as building a new platform, isn't Microsoft trying to do that anyways? Nokia now has less control, even though I would argue they are better at this in telecom.
True on taking bold action and thinking long-term, my concern is that Elop took rash action and didn't make the best decision for Nokia.
Thanks again.
caleb23, thanks for sharing these are great points, glad to read them. Nokia certainly does have a good position with its patent portfolio and its NAVTEQ business is doing great as you mentioned. iOS isn't really that great of a benchmark in places like India as Windows Phone offers lower cost models while iPhones are extremely expensive putting them out of reach for most people. Nokia stock might do very well as you say we will see (my comments were on the Nokia business itself more so than the stock price potential).
shangjeen, thanks for your comment. Good points you raised, a couple responses:
1) Nokia sold 1 million N9s in one quarter: Quarter 4 2011 (the actual amounts are debatable as Nokia doesn't release figures but estimates I've seen put it between 600k and 1.5 m), that same quarter Lumias sold just under 1 million and that was with the big marketing spend. That tells me as an executive that fact that I can sell 1 million N9s without marketing tells me I might have something there yet Elop never pushed it and is letting the N9 slowly die. Sure Nokia sold more in aggregate but Nokia also spent hundreds of millions to get those sales.
2) Agreed there are several reasons why this shift occurred but I do believe Nokia deciding to kill off Symbian had a major effect in accelerating this switch. The nuances to this perhaps got lost.
3) On Bluetooth. iPhone is not a fair comparison, in the developing world (where I was referencing), iPhone has only a very small market share. BB benefits from their BIS system and BBM. Android and Symbian which are extremely popular OSs, do have the Bluetooth sharing functionality.
4) Most of my source on this point comes from Tomi Ahonen's article and from research on Nokia's US relationships. You're right carriers push tens of millions of low-cost Nokia phones, perhaps it would be better to split out carriers desires to sell Windows Phones and Nokia's other phones.
SB12, thanks for your comment. I am surrounded with people using Nokias (Symbian). I live in South Africa where its 50% of the market and I see how much people love their Nokia phones and brand. I can tell you though, that very few people here will ever buy a Windows phone. I agree with the right person it could have been saved.
Actually it was to raise awareness of how I believe Elop is hurting the company. I don't have any affiliation with banks and don't ever short myself. It has been interesting seeing people's sentiments though. I wasn't expecting such passionate responses.
alphaman35, thanks for your comment. I do hope to be pleasantly surprised here (honestly I like Nokia they make great products), my issue is they did not need a turnaround when Elop came in. They needed someone who could execute on their strategy and streamline the company. Nokia had the pieces in place to continue growing (50% of the smartphone market with Symbian and Meego and Meltemi as the new platforms for migrating away from Symbian) and Elop did a good job at executing up until his "Burning Platforms" memo when he basically shot any chance of following that route.
It is relatively impressive they brought out Windows Phones but the difference with Blackberry is that Blackberry is trying to do the hardware and software while Nokia only needed to focus on the hardware for which they already had a nice base to work with in the Nokia N9. I agree Nokia will be the best Windows Phone but how appealing is Windows to the vast majority of their customers in the developing world?
Second, Macromedia and Microsoft are in a very different industry than Nokia. Telecom is its own beast and requires its own set of skills. I've been in telecom several years (contray to my looks I just age well ;) ) and it is very different than working in software, particularly in how to drive sales and get users due to the distribution system and who Nokia's real customer actually is (carriers)- exactly where Nokia has suffered.
Herr Hansa, thanks for the post. Very interesting on the timeline progression and great comments on the lead competitors. One interesting piece is how the profit break down will ultimately shake out, because, for example, MSFT makes money on licenses paid by the OEM/smartphone maker. The question is, how much profit will the OEM make versus the platform provider and how will a company like HTC create recurring revenue?
By the way I read your article. That is a fantastic breakdown of all the lead component makers!
Thank you Steven. I really appreciate the compliment! Very interesting breakdown of RIM's liquidation value. One worry though is whether RIM will burn through its cash before the end dropping the liquidation value. What are you thoughts on this point?
CJoblon and robbie, great points. The carrier issue with RIM's NOC is certainly a question mark but at the same time, its provided carriers access to a steady stream of income, at least in the developing world. RIM's system also compresses data extremely well so its less strenuous on the networks and ultimately cheaper for carriers to operate. That's important when data capacity for many carriers is not necessarily where it could be.
In app billing and the carrier's fear of a purely two race OS war is certainly a plus for RIM's prospects.
Thanks ptywolf. its great to hear about your experience in Panama. Interesting how a similar trend can span several continents. I Samsung or Apple will be the one to break the networking effect but rather another company that brings something that is new to consumers and cross-platform. Similar to how WhatsApp has come to prominence as its the first time non-Blackberry users and Blackberry users could interact on a quality user interface..
Thank you GWBL! I certainly agree with you. There is a future there for RIMM. I will be interested to see if they can do it.
Thanks for the comment Taylor. You're right most of the other guys haven't focused too much on these markets. That being said, while the emerging market does have lower margins in general, 5 out of 6 people live in those markets so lower margins can be more than made up for with quantity if you make a product people want-- like Nokia used to do and RIM does now.
When it comes to telecommunications, the emerging market is actually the big leagues, many people just don't realize it. That is where many recent innovations are coming: mobile money got big in Kenya first, then went elsewhere. The developing world is where the much of the mobile revolution is taking place since most people are skipping the PC era altogether. A completely mobile user (as opposed to a computer and mobile user in the U.S.) has its own set of problems and forces innovators to take a new approach to how a user interacts with tech. Be ready to see a lot more innovation coming from the minor leagues.
Thank you for the compliment! I definitely agree with you that RIMM currently can't compete in North America and that drives the price of the stock, sadly. I think RIMM's leadership will do all they can to keep RIMM as a separate company until at least they give BB10 a try. After that, anything could happen.