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When your core business is as wrapped up in emerging markets as
Nokia's is, then you'd better know a little something about KIRFs --
those cheap handset clones that our Chinese friends can often stamp
out faster than the time it takes for Nokia to ship a handset after
its announcement. Nokia executive board member, Esko Aho, says that
one out of every five cellphones now sold around the world (primarily
in Asia, Latin America, and some parts of Europe) is an illegal or
unlicensed clone. We've certainly seen more than our share when
browsing the Shenzhen markets of China. Gartner claims the number to
be even higher than 20 percent. While we poke fun at KIRFs around here
for their shoddy software, comically similar branding (Nokla!), and
cheapo materials, they've clearly become a very serious issue for top-
tier cellphone manufacturers. How serious we'll see on January 27th
when Nokia announces its fourth quarter results.
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