However, another mobile analyst, Meredith Eitt of Current Analysis, said that doesn't necessarily have to create an iPhone-killer right away to succeed, though she warned that could be ceding the U.S. market if it fails to do so in the future.

«#39;s current performance probably won't be affected much by the upcoming U.S. releases because #39;s presence is largely in Europe,» she said. «Its U.S. presence is sparse and, though they offer some unlocked phones, they have little distribution via U.S. carriers. What handsets they do offer are low to mid-range phones. Thus, releases will not impact those sales.»

«However, the new releases may have some impact on #39;s potential future in the U.S., as has been trying to expand its footprint in the U.S. and the upcoming releases will make it all the more difficult for to penetrate the U.S. market,» she added.

Despite the brutal economic climate and looming competition, however, #39;s Kallasvuo cited some signs of hope for future growth at his company.

«In what has been an exceptionally tough environment, we continue to invest in a focused manner in consumer Internet services delivered across our broad portfolio of mobile devices,» he said in a statement. «Combined, these solutions will drive our future growth.»

«As an example in Q1, I am especially pleased with the performance of our first mass-market touch product, the 5800 XpressMusic,» Kallasvuo said, referring to last year's launch of a music-oriented that features a service, Comes With Music, that's designed to rival #39;s iTunes store.

«Together with Comes With Music, it is a great example of providing solutions that consumers value,» he said.


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