| p>Investments in shares of wireless technology | | | | Internet browser, an integrated music player, a |
| companies and wireless service providers have | | | | camera with 2x digital zoom, and a FM radio. One |
| been particularly profitable in the post-dot com | | | | of the nifty features of the Nokia 7710 |
| era. The wireless industry is in a sweet spot of | | | | smartphone is its ability to make weblogging |
| the technology space. Bountiful business | | | | mobile. Users can post pictures and text from the |
| opportunities exist as wireless usage continues to | | | | Nokia 7710 smartphone directly to the web |
| increase in both developed and emerging markets. | | | | through the 'moblog' client. |
| And driving this usage higher are new products | | | | Nokia is also expected to introduce the Nokia |
| such as smartphones whose capabilities are being | | | | 3230 smartphone in the first quarter of 2005. The |
| augmented by the deployment of third generation | | | | Nokia 3230 smartphone features a video recorder |
| (3G) wireless networks. | | | | and 'Movie Director' that will allow 1 hour of video |
| Feature-Rich Smartphones. | | | | to be captured. |
| Smartphones are more than mobile phones. A | | | | Nokia is now increasingly looking at software |
| smartphone is a mobile phone with built-in | | | | licensing deals to help differentiate itself from its |
| functions of a personal digital assistant. | | | | competitors. Nokia has recently signed licensing |
| Smartphones pack a diverse range of features | | | | deals with Macromedia and RealNetworks. Nokia is |
| and functionalities into the handset that makes | | | | also said to be working on handsets that will |
| them a mobile information center and | | | | receive wireless television feeds. |
| entertainment device for the user. | | | | Smartphone Investment Implications. |
| Smartphones commonly include features such as | | | | The increasing adoption of smartphones augurs |
| web browsing, e-mail, and multimedia capabilities. | | | | well not only for Nokia but also for other |
| Certain models have enough horse power to run | | | | smartphone manufacturers like palmOne (Nasdaq: |
| complex software applications such as enterprise | | | | PLMO) and Research In Motion (Nasdaq: RIMM). |
| customer relationship software and car navigation | | | | palmOne recently introduced the GSM edition of |
| programs. | | | | its Treo 650 smartphone. Research in Motion |
| A full-featured QWERTY-type keyboard, MP3 | | | | recently released the latest model in its |
| player, and Geo Positioning Systems capability are | | | | BlackBerry 7100 series, the 7100g. |
| becoming common among higher-end | | | | The incorporation of additional features and |
| smartphones. Instant messaging is a cool feature | | | | functionalities that make smartphones the |
| making its way into the mainstream. | | | | portable information center and entertainment |
| Smartphones, A Growing Segment of the | | | | device of choice has bullish implications beyond |
| Handset Market. | | | | just manufacturers of smartphones. |
| Smartphones represent a small, yet rapidly | | | | Wireless service providers like Vodafone (NYSE: |
| growing, segment of the handset market. | | | | VOD) should see their average revenue per user |
| According to Strategy Analytics, smartphone | | | | being buffeted with increasing use of value-added |
| sales at 17.5 million units in 2004 accounted for | | | | services that smartphones enable. |
| 3% of the worldwide sales of 684 million | | | | Then too, the increasing adoption and usage of |
| handsets. However, this represents a significant | | | | smartphones will require the rollout of 3G wireless |
| jump from the 8.2 million units sold in 2003. | | | | networks in earnest, translating into business |
| The demand for smartphones is projected to | | | | opportunities for wireless network equipment |
| grow rapidly in the coming years. By 2009, the | | | | providers such as Ericsson (Nasdaq: ERICY). |
| number of smartphone units sold is estimated to | | | | Notes: This report is for information purposes |
| reach 125 million or 16% of total handset sales | | | | only. Nothing herein should be construed as an |
| worldwide. This implies a 48% compound annual | | | | offer to buy or sell securities or to give individual |
| growth rate in smartphone unit shipments over | | | | investment advice. This report does not have |
| the 2004-2009 period. | | | | regard to the specific investment objectives, |
| Smartphone Early Adoption Led by Asia and | | | | financial situation, and particular needs of any |
| Europe. | | | | specific person who may receive this report. The |
| Adoption of smartphones has been particularly | | | | information contained in this report is obtained |
| rapid in Asia and Europe. The aggressive | | | | from various sources believed to be accurate and |
| deployment of advanced wireless networks in | | | | is provided without warranties of any kind. |
| these regions has encouraged early adoption of | | | | AlphaProfit Investments, LLC does not represent |
| smartphones. | | | | that this information, including any third party |
| The Asia Pacific region currently accounts for | | | | information, is accurate or complete and it should |
| about 37% of global smartphone sales with South | | | | not be relied upon as such. AlphaProfit |
| Korea and Japan being leaders in smartphone | | | | Investments, LLC is not responsible for any |
| usage. The European market accounts for 27% | | | | errors or omissions herein. Opinions expressed |
| of global smartphone sales. Analysts expect | | | | herein reflect the opinion of AlphaProfit |
| smartphone sales in Europe to exceed sales in the | | | | Investments, LLC and are subject to change |
| Asian market in the coming years. North | | | | without notice. AlphaProfit Investments, LLC |
| America's market share in smartphone sales was | | | | disclaims any liability for any direct or incidental |
| expected to reach 25% by the end of 2004. | | | | loss incurred by applying any of the information in |
| Nokia, the 800 lb. Gorilla of Smartphones. | | | | this report. The third-party trademarks or service |
| Nokia (NYSE: NOK) is by far the dominant global | | | | marks appearing within this report are the |
| smartphone manufacturer. The Finnish company is | | | | property of their respective owners. All other |
| currently estimated to command half to | | | | trademarks appearing herein are the property of |
| two-thirds share of the global smartphone market. | | | | AlphaProfit Investments, LLC. Copyright © |
| Nokia recently introduced its feature-rich Nokia | | | | 2005 AlphaProfit Investments, LLC. All rights |
| 7710 smartphone in Europe and Africa. The | | | | reserved. |
| wide-screen Nokia 7710 smartphone includes a full | | | | |