I couldn't agree more with Will Strauss' characterization of Nokia's new modem chipset strategy as a "blockbuster" announcement.
By getting out of the chipset design business, Nokia is adopting the Qualcomm's very successful model of IP licensingand outsourced future chip development (along with 200 chip design engineer to STMicroelectronics).
You can download Forward Concepts' latest bulletin at http://www.fwdconcepts.com/DSP%20Bulletin_8_8_%2007.pdf.
Personally, I would go a step further and say that Nokia's exit from the modem chipset market is also an indication that it believes most value added in the future will be in software and software platform development.
The possibility of seeing a battle for software platform dominance is pretty good. Nokia and Motorola both have ramped up application developer sites. Motorola is pushing for an open architecture and Nokia is at the very least hedging its bets.
I may be that Nokia thinks that over the next decade or so we'll see the wireless industry developing along the same lines as the PC industry did in 1970s an 1980s.
In other words, the hardware platform will become something of a commodity with constantly falling prices. (Although there will always be room for high end products that command a premium price).
It takes a bit of effort to think of a mobile phone as a software platform but that might be where we are headed.
As Microsoft as instructed us over the past three decades, a lot of money can be made with softwareboth operating systems and applications. There will be differences, or course. The open source movement has made proprietary OSs something of a risky business. But applications are an ever expanding market, almost as sure a thing as death and taxes.