Nokia cost tactics

That clever Nokia is devising a wonderful variation of age-old military strategy – divide and conquer. How it goes is that Nokia is differentiating their phone model lines and using slightly different components in their mobile phones. This way there is no one big supplier that can benefit from advantage of scale. As a result, Merrill Lynch analysts say, component competition will continue as fierce and prices will stay lower than in case of monopoly/oligopoly. Nokia - you clever, you. Here’s the article.