Killer apps are not the way

Forget stories about a recession. The downbeat state of the networking industry is the result of inflated share prices and 3G infrastructure costs coming home to roost.

Leading companies such as Cisco, Motorola and Ericsson have shed jobs and issued profit warnings, but the survivors will emerge stronger, says Bloor research analyst Mat Hanrahan.

"Share prices are driven by fund managers and what's happening now is driven by all the wrong reasons," he said.

Vendors should stop trying to deliver the 'killer application' and actually address business needs, said Hanrahan. He suggested that the downturn is encouraging companies to work together. "Companies are going to start covering each others' backs," he said. "It's not a horse race any more. It's a wagon train."

Finnish mobile maker Nokia claimed last week it will meet its financial targets, although it is cutting its sales forecast from 450 to 500 million units this year.

See also:

3G: Beyond the hype

The third-generation (3G) licence frenzy has left mobile operators with empty pockets and a head full of hype, wondering whether they can find a killer app to justify the billions spent on the licences.  01 May 2001

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