It's the mixture of products with more basic phones being sold in emerging markets and that's gonna shift your ASP.
Although their market share is going up, this is putting pressure on their margins and profits,
A lot of the growth we're seeing in 2006 and beyond will come from emerging markets.
In any case, it will be higher than 800 million.
Samsung needs to do something because its share is not growing.
They need to find new applications and features that will continue to sell their more expensive phones in Western Europe and North America.
Nokia has proven that there is a sizeable market of consumers in Europe, North America and Japan who are looking to replace their phones with a more powerful device that can do instant messaging, photography, music.
Year on year sales grew in all regions as replacement sales in mature markets such as Western Europe and North America continued to drive growth while users in emerging markets joined mobile networks and acquired their first mobile device.
As competition continues to drive price pressure at the low end and a design and technology 'arms race' at the high end, the survival of the fittest depends more and more on economies of scales, or very carefully cut out niche markets.
Based on preliminary data for the first two months we expect to see a similar trend as in the first quarter of 2005 with a drop over the previous quarter in the region of five to eight percent.
