This time last year, Nokia, the world's largest maker of mobile phones, suddenly found itself on the ropes. Its market share in the first three months of 2004 had fallen to 28.9%, having hovered around 35% for years. The firm cut prices, but that was only a short-term fix: it then set about addressing the underlying causes. The unveiling of its latest batch of handsets this week provided new evidence that Nokia has changed its ways. Nokia's woes had two main causes: lacklustre products which failed to address consumers' enthusiasm for "clamshell" or "flip-phone" camera-phones and highlighted Nokia's loss of leadership in design; and the company's reluctance to produce customised versions for mobile operators. Many operators have been turning to specialist "original design manufacturers" (ODMS), mostly based in Taiwan, to supply custom handsets. These are often sold by operators under their own brands, to help differentiate themselves.
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