Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Nokia Chief Sees Opening in China [Wall Street Journal]
Summary: Nokia CEO Olli-Pekka Kallasvuo on a trip to China this week, noted the potential of a maturing mobile phone market in China, where replacement phones (which are usually "upgrades" to higher-end phones) make up an estimated 55% of the market and are seen growing to 80% by 2010. At the same time, China's mobile phone market is emerging because Nokia expects the number of subscribers to grow by 160 million over three years, in addition to the 443.2 million current subscribers. There were nearly 50 million new subscribers y-t-d through October. Kallasvuo also commented on the mobile phone being a substitute for a PC in China -- emphasizing the opportunity for people to get their first Internet experience with a mobile phone -- adding, "I think we can take value from the PC market in this domain..." Nokia has a partnership with China's leading search engine Baidu.com.
Related links: Additional coverage: People's Daily Online. Commentary: Nokia to Reclaim High-end Handset Throne • Nokia's Results -- Key Facts & Analysis • Merrill Lynch Ups Handset Sales Forecasts Believing 2006 Could Be Peak Year for Global Sales • Baidu Takeover Rumors: What Google and Yahoo Would Gain • Baidu Reports Strong Q3, But Stock Tanks on Lower Q4 Revenue Forecast. Earnings conference call transcripts: Nokia Q3 2006 and Baidu Q3 2006.
Potentially impacted stocks and ETFs: Nokia (NYSE:NOK) and Baidu (NASDAQ:BIDU) • Competitors: China Techfaith Wireless (NASDAQ:CNTF), Motorola (MOT) • ETF: streetTRACKS Morgan Stanley Technology (MTK) -- Nokia is a 3% holding
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