BBC piece on smartphones and the recession

http://news.bbc.co.uk/1/hi/business/8292101.stm makes interesting reading.  I’d make a couple of observations.  One is that the squeeze on margins for the network operators isn’t particularly a result of the recession.  It’s a result of them selling a commodity with very little differentiation.  That’s been the case for some years, and a lot of the networks’ actions in recent years (in the UK at least) have been attempts to make their offerings a bit different from those of their rivals.  The other is that my reading of the Nokia and SonyEricsson market is slightly different from the BBC’s: surely their key market is people who want phones for making phone calls and sending text messages.  Or is that an outdated view of the market?

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