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Apple now the largest mobile phone vendor on earth

post #1 of 126
Thread Starter 
With sales of its iPhone handset and accessories hitting $10.47 billion in the winter 2010 quarter, Apple has now surpassed Nokia to become the world's largest mobile phone maker in terms of revenue.

Nokia's most recently reported quarter saw its Devices & Services division bringing in 7.17 billion Euros ($9.7 billion), and the company projects Q4 sales of 8.2 to 8.7 billion Euros ($11.4 to $11.7 billion), but this includes more than just its smartphone sales.

Nokia's Devices & Services folds in the company's line of handheld mobile computers, tablets and other devices falling within its Mobile Solutions group, as well as its global sales of non-smart feature phones in its Mobile Phones unit, as well as a Markets unit that manages the company's Ovi-branded services ranging from email to its music and app stores.

Adding Apple's own $1.4 billion in iTunes Store revenues to its iPhone revenues tilts it ahead of Nokia's Devices & Services in the winter quarter, even before threatening to bust the scale with its multibillion dollar iPod and iPad ($4.61 billion itself) sales.

Apple began bragging last year

A year ago, Apple's chief executive Steve Jobs pointed out that Apple's then record $15.6 billion winter quarter had turned it into the "largest mobile device company" in the world, ahead of Nokia, Sony and Samsung.

"I just didn't want to let this moment pass without recognizing it," Jobs said. "It's pretty amazing."

Nokia was quick to dispute the claim, with its own chief executive Olli-Pekka Kallasvuo insisting that at the time that Nokia was still the worlds biggest mobile device manufacturer, when using a generally accepted and stable definition of mobile devices, which excluded notebook computers (which Nokia doesn't make in significant quantity).

This year, Apple doesn't have to include MacBook sales in a disputed definition of what a "mobile device vendor" is, and can instead simply snatch the crown of "world's largest mobile phone vendor" from Nokia. The Finnish phone giant has since replaced its former CEO with Stephen Elop, who joined Nokia last September after leaving his previous position as head of Microsoft's Business Division in charge of delivering Office.

Apple's mobile business growing fast

Apple's chief financial officer Peter Oppenheimer also pointed out Apple's mobile business is growing at a faster pace than even the fastest growing smartphone segment of overall market.

"We were thrilled to have sold 16.2 million iPhones compared to 8.7 million in the previous December quarter," Oppenheimer said in his prepared remarks. "This represents 86% year-over-year growth compared to IDC's latest published estimate of 70% growth for the global smartphone market overall in the December quarter."

Most painful for Nokia is that Apple didn't beat it by flooding the market with cheap low end phones, but rather took away its mobile bragging rights with the kind of high end, Enterprise-savvy smartphone the Finnish phone company has found hard to deliver.

Apple's American invasion of Nokia's backyard

Oppenheimer noted that "Enterprise customers continue to embrace iPhone, with 88 of the Fortune 100 companies and almost 60% of the Financial Times Europe 100 companies now testing or deploying iPhones."

That's more than just an embarrassment to Nokia, which has long owned the European market while struggling to make inroads into North America. It's a direct invasion of its home field, once unquestioning dominated by Nokia's Symbian.

"Enterprise CIOs continue to add iPhone to their approved device list worldwide," Oppenheimer said. "Most recently, Fortune 500, like Wells Fargo, Archer Daniels Midland, DuPont, Staples, Starbucks and Genworth Financial, and Global 500 accounts such as Nissan Motor, BBVA [Banco Bilbao Vizcaya Argentaria], Standard Chartered Group and Danone, have made iPhone available to their employees."

Lots of room to expand

Most troubling for Nokia, however, is that Apple is just getting started. Nokia has sat on top of a dominant position in mobile phones for years, much as Microsoft has enjoyed high market share in the PC world. Apple has outpaced both, not by seeking to just capture market share, but by capturing profit share with a limited number of high end devices that are visible and attractive to customers and easier to support.

That gives Apple vast opportunity to continue to expand its share, eating into the mobile and PC markets even as Nokia and Microsoft scramble to hold on to their existing share of those markets through a wide range of low end devices that all blur together for consumers even as they become increasingly difficult and expensive for Nokia and Microsoft to support.

In his Q&A session, Apple's chief operations officer Tim Cook explained, "We've had 19 quarters straight of growing faster than the market [with the Mac], but we still have a relatively low share of a very large PC market despite having great momentum there. And so it would seem like there's enormous opportunity still there.

"We have a relatively low share in the handset market. The handset market is well over 1 billion units a year, and the smartphone market is growing faster than a weed. And so there's enormous opportunity here, and we have incredible momentum in that space."

At the same time, Apple has also introduced iPad as a new product category in a space that neither Microsoft nor Nokia has been able to successfully target, despite years of trying with their Tablet PC and Internet Tablet initiatives.

"iPad just got started, it's a new category," Cook noted. "We sold almost 15 million through the first three quarters, and we believe the market is huge. IDC, I saw this morning, is predicting it to quadruple in two years. I don't know what to predict in terms of specific numbers. However, we believe it's a huge market, as we've said before. And so we're in some great markets, some fast-moving markets, we have the best products we've ever done and an incredible product pipeline. We feel very, very confident."
post #2 of 126
I Have to say that I would love to give all these Apple head guru's a pat on the back for freaking making some of the best products out there, have some the highest customer satisfaction ratings, and are the most profitable devices sold because they are high end. I love the fact Apple has never competed in the shit low end market and yet they still WOLLOP the competition. Great Job Apple...my hats off to you....Get well soon S.J.
post #3 of 126
Daniel, the term is: "in the world". Not: "on earth".
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post #4 of 126
This should probably be titled "Apple now the highest-revenue phone vendor on earth," or something like that. Because Nokia is a larger company and sells more phones, in terms of # of units. Apple just happens to make a lot more per phone.

I'm too lazy to look up the stats.
post #5 of 126
From a Feb 18, 2007 interview in a Swiss newpaper:

Palm’s president and CEO Ed Colligan gave a new interview to Swiss newspaper Sonntagszeitung that was published today. In it, he had the following to say about the Apple iPhone (rough translation from German):

“In my opinion it looks like a highly developed media player, which by a coincidence includes a mobile phone. It could be interesting for people that need to have both music and films on one iPod, as well as the occasional phone call.” But for businessmen and other types of users the touchscreen without a keyboard will be a challenge, said Mr Colligan.

According to him, besides computers and iPods Apple developed “nothing at all“. There’s a giant difference between giving speeches and actual development, went on to say Mr Colligan.


Four years seems like an eternity.........

post #6 of 126
It's a darn shame and embarassment for Nokia and speaks much of their management's ability to stay on top. They've had so many YEARS to get their act together and they spent it sitting on their hands.

Now, waiting for the Android disciples to come out and spin this....
post #7 of 126
Quote:
Originally Posted by anantksundaram View Post

From a Feb 18, 2007 interview in a Swiss newpaper:

Palms president and CEO Ed Colligan gave a new interview to Swiss newspaper Sonntagszeitung that was published today. In it, he had the following to say about the Apple iPhone (rough translation from German):

In my opinion it looks like a highly developed media player, which by a coincidence includes a mobile phone. It could be interesting for people that need to have both music and films on one iPod, as well as the occasional phone call. But for businessmen and other types of users the touchscreen without a keyboard will be a challenge, said Mr Colligan.

According to him, besides computers and iPods Apple developed nothing at all. Theres a giant difference between giving speeches and actual development, went on to say Mr Colligan.


Four years seems like an eternity.........


And let's never forget Steve Ballmer's classic reaction!

http://www.youtube.com/watch?v=So7qrFO_p44
post #8 of 126
Quote:
Originally Posted by Ireland View Post

Daniel, the term is: "in the world". Not: "on earth".

Perhaps not... has Apple gone intergalactic and not told anyone?
post #9 of 126
Quote:
Originally Posted by anantksundaram View Post

From a Feb 18, 2007 interview in a Swiss newpaper:

Palms president and CEO Ed Colligan gave a new interview to Swiss newspaper Sonntagszeitung that was published today. In it, he had the following to say about the Apple iPhone (rough translation from German):

In my opinion it looks like a highly developed media player, which by a coincidence includes a mobile phone. It could be interesting for people that need to have both music and films on one iPod, as well as the occasional phone call. But for businessmen and other types of users the touchscreen without a keyboard will be a challenge, said Mr Colligan.

According to him, besides computers and iPods Apple developed nothing at all. Theres a giant difference between giving speeches and actual development, went on to say Mr Colligan.


Four years seems like an eternity.........


Palm has always been the side project of former Apple employees who were the pre-NeXT talent.

Then a small wave of Apple guys came to help Jon after he left Palm and most of them split off to several other companies. A few former NeXT friends now work at Amazon and do nothing with operating systems.

A few have completely retired and one runs his own ceramics/pottery business. Yes, four years is an eternity in Silicon Valley.

For Apple, those four years more than doubled their employees and probably tenfold their engineering talents.
post #10 of 126
Quote:
Originally Posted by imactheknife View Post

I Have to say that I would love to give all these Apple head guru's a pat on the back for freaking making some of the best products out there, have some the highest customer satisfaction ratings, and are the most profitable devices sold because they are high end. I love the fact Apple has never competed in the shit low end market and yet they still WOLLOP the competition. Great Job Apple...my hats off to you....Get well soon S.J.

I remember quite a few threads in the past from folks criticizing Apple about their offerings being too expensive and that no one would ever pay for shiny and pretty stuff that can't do what <insert anything else here> can do for 1/2 the price.

I hear that the humble-pie special at the corner diner is the most-requested meal!

Consumers want quality, finish, excellent customer service, and good value for their money. Such a shame the other players can't seem to figure that out by now.
post #11 of 126
Amazing that they did this with a single phone!
post #12 of 126
Quote:
Originally Posted by sflocal View Post

Consumers want quality, finish, excellent customer service, and good value for their money.

Actually, modern consumers want BLING \
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post #13 of 126
Quote:
Originally Posted by sflocal View Post

Perhaps not... has Apple gone intergalactic and not told anyone?


My thought as well. You'd think at least one iPhone would have made into space by now.

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post #14 of 126
Yes its truly amazing what Apple has achieved in a relatively short period of time.
Words don't give justice to the brilliance, dedication and plain hard work that thousands of Apple employees have put in, I tip my hat to you all.
I don't like to cast others in bad light (they seem to be able to do this by themselves quite easily), what I would like to say is that in the past many have complained (wrongly) about Apple and it's motives, "too expensive, too cool, all marketing etc.". I still see posts on many media outlets as well as spoken from people on the same lines. I know why they do it, its pure ignorance, it takes time and effort to learn things, its simply human nature to be lazy (majority), that is how Microsoft made a killing. But now we have wonderful products from Apple, and hasn't the experience been awesome, magical and great fun.
It thrills me when my young children pick up their iDevices and enjoy them, without asking for help, or need of a manual. To me that says it in a nutshell. The other day a friend mocked my iPad, "its a toy", you know why they say this, because its so easy t use, hence they get confused.
But hang on are not computers meant to be hard to use, this is serious stuff we are using, don't let your 7 year old touch it, they will break it.
So I think that the greatest accomplishment of Apple is that it has given computers to the masses, simple and elegant to use, underneath, amazing technology, much of it, leading-edge.
I am so happy that I switched to Apple those many years ago, I have switched others, and will continue doing so, everyone should should benefit fro using wonderful devices.
I think Apple will continue to amaze us, I am always wondering what new products they will bring out next. I'm sure that over time, the eco-systme will develop much further, and make what is a fun and easy experience, even more fun and easier.
Again thank You all those at Apple.
post #15 of 126
Can buy a nice satellite media distribution system for a little under 10 Billion.

(Check Direct TV, Iridium, Globalstar and defunct Teledesic deployment costs)

(For start see: http://www.dslreports.com/shownews/R...08?nocomment=1)

Suggest Apple buy Orbital Sciences if they have not already done it.
post #16 of 126
Quote:
Originally Posted by Ireland View Post

Daniel, the term is: "in the world". Not: "on earth".

They are both terms.


Quote:
Originally Posted by crustyjusty View Post

This should probably be titled "Apple now the highest-revenue phone vendor on earth," or something like that. Because Nokia is a larger company and sells more phones, in terms of # of units. Apple just happens to make a lot more per phone.

I'm too lazy to look up the stats.

I think it was in 2008 that they became the most profitable handset maker in the world, but only in 2010 they also took in the most revenue.

As for for larger, who measures a companys success by units? if that was the measure then no one, not even Apple, would be making expensive devices. I suppose were going to make odd comparison to larger we should go by employee numbers or indoor square footage.


Quote:
Originally Posted by mstone View Post

My thought as well. You'd think at least one iPhone would have made into space by now.

On space no one can hear you <insert funny comment>
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post #17 of 126
Quote:
Originally Posted by AppleInsider View Post

... Apple now the largest mobile phone vendor in the world by revenue ...

This is such a technical victory though. Who cares? and more importantly, why write a story about it? "By revenue" is only important if you are concerned about how much money Apple is making and running the company. It doesn't even matter to investors.

"The worlds biggest cell phone maker" is the company that makes the most cellphones. Technical metrics like how much money they generate are just not relevant to "who's the biggest" for 99.9% of the population.
post #18 of 126
i preferred "on earth"
post #19 of 126
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post #20 of 126
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post #21 of 126
Not postponed, but canceled:

Quote:
Nokia, long the world's leading producer of mobile phones by number of units sold, is being hurt by its failure to produce a smartphone that can compete with the iPhone or models based on Google's Android software, as well as by its longtime focus on markets outside the U.S.
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post #22 of 126
Quote:
Originally Posted by monstrosity View Post

i preferred "on earth"

"in the universe" or "in the Milky Way Galaxy" has a nice ring to it too.
post #23 of 126
Quote:
Originally Posted by crustyjusty View Post

This should probably be titled "Apple now the highest-revenue phone vendor on earth," or something like that. Because Nokia is a larger company and sells more phones, in terms of # of units. Apple just happens to make a lot more per phone.

I'm too lazy to look up the stats.

If you haven't noticed the goal of a company is to generate revenue.
If you can generate more revenue with fewer sales, you are better company.
post #24 of 126
"It thrills me when my young children pick up their iDevices and enjoy them, without asking for help, or need of a manual. To me that says it in a nutshell. The other day a friend mocked my iPad, "its a toy", you know why they say this, because its so easy t use, hence they get confused.
But hang on are not computers meant to be hard to use, this is serious stuff we are using, don't let your 7 year old touch it, they will break it.
So I think that the greatest accomplishment of Apple is that it has given computers to the masses, simple and elegant to use, underneath, amazing technology, much of it, leading-edge."

Well said!
I have been saying this to friends since the 80s and it seems now in the 21st century that the Apple 'vision' which the Steves dreamed of and strived towards from the 70s onwards, is finally coming true on a global scale, albeit not with the Mac as the champion product. Sure, it's a matter of choice and always has been, but too many people credit Bill Gates and Windows for the OS revolution forgetting the history of Windows origins. Also often forgotten is the simple reality that new computer users, such as children and the elderly are baffled by non-Apple approaches to user interaction and operating systems, in particular Windows. I like many others benefitted from using Apple computers through school and then university, choosing to ignore the awful Windows PCs that gathered dust in the corner, only to join the workforce and be forced to use Windows in the enterprise, which results in frustration and confusion until you decipher the non-user friendliness of the whole operation.
Sure, Windows has improved dramatically with the arrival of Windows 7, their most Apple like OS ever, but it has taken an apparent eternity to get there from the promises and hype of Windows 95.
Traditionally, non-Apple OSs make no logical sense to the new user, only to the Administrators who do it for a living or a time consuming hobby or both. It doesn't need to be like that, and it never has, but it has taken a quarter of a century and a number of revolutionary products for people to start realising this.
It is also interesting that many companies continue to dismiss Apple because of their "integrated" approach, prefering the so called "open" approach that Windows and now Android champions. But the end result is neither engages or provides any great benefit to the end user, and it is so easy to forget that end users make up 99% of the population, not administrators. Just my two cents.
post #25 of 126
"We have a relatively low share in the handset market. The handset market is well over 1 billion units a year, and the smartphone market is growing faster than a weed. And so there's enormous opportunity here, and we have incredible momentum in that space."

This does beg the question ... is there another handset on the horizon with a different form factor? iphone nano perhaps? 6 to 18 months down the track? It would be interesting to ponder as the iphone is now at a point in it's life cycle similar to the ipod, where the introduction of a second model may be seen as not cannabilizing existing iphone sales, but rather stealing more from Nokia's handset sales.
Perhaps a phone about 2/3rds the size, made up of just a touch screen, with 3x4 apps on the screen size, instead of the usual 4x5. Just pondering ... who knows the timing may be right ... remember all the talk about a iphone nano in recent years?
post #26 of 126
Quote:
Originally Posted by Ireland View Post

Daniel, the term is: "in the world". Not: "on earth".

Sorry, I dozed off. Is it bag on Daniel time again already?
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post #27 of 126
Quote:
Originally Posted by sflocal View Post

"in the universe" or "in the Milky Way Galaxy" has a nice ring to it too.

I prefer The Verse. Ohh, I think Ill start referring to trolls as Reavers.
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post #28 of 126
Quote:
Originally Posted by ruel24 View Post

Amazing that they did this with a single phone!

Part of me would like to see Apple now deliver a really cool dirt cheap basic phone with some extras like the touch screen from the shuffle, make it in nice clean third-world factories (other than China), and drive a stake through the heart of the competition. The evil part.

Part of me would rather keep things as they are. The virtuous part.
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post #29 of 126
Quote:
Originally Posted by ruel24 View Post

Amazing that they did this with a single phone!

Closer to a dozen different SKU's. iPhone, iPhone 3G, iPhone 3Gs, iPhone 4, each offered in different capacities, sometimes with different colors, at different pricepoints.
post #30 of 126
Quote:
Originally Posted by john galt View Post

Not postponed, but canceled:

Only is the US.
post #31 of 126
Quote:
Originally Posted by Prof. Peabody View Post

This is such a technical victory though. Who cares? and more importantly, why write a story about it? "By revenue" is only important if you are concerned about how much money Apple is making and running the company. It doesn't even matter to investors.

"The worlds biggest cell phone maker" is the company that makes the most cellphones. Technical metrics like how much money they generate are just not relevant to "who's the biggest" for 99.9% of the population.

I feel so exclusive being in the .1% that simply thinks unit sales is by far the most useless metric for any business. It simply doesn't matter. High units for little revenue is a terrible business model, most if not all investors should care about that. The same is true of profitability.
post #32 of 126
Wow! This is utterly amazing! I know it's competition and good for the consumer, but schmidt/google really screwed over Stevo by getting the inside scoop while sitting on apple's board. Just think how much apple would've sold without android phones pretending to be just as good as the iPhone? Oh well, I know I should just get over it and move on. But it was a dirty deal none the less!
post #33 of 126
Quote:
Originally Posted by solipsism View Post

As for for larger, who measures a companys success by units? if that was the measure then no one, not even Apple, would be making expensive devices. I suppose were going to make odd comparison to larger we should go by employee numbers or indoor square footage.

Anyone selling commodities, or advertising. For example, Google is not interested in the revenue or profits from the sales of Android phones, they don't get any of it. They do care about unit sales of Android because that drives ad impressions and use of Google search and other products, which in turn is a revenue driver for Google.
post #34 of 126
Quote:
Originally Posted by MacRulez View Post

For customers it just means they're paying more than anyone else, but Apple customers welcome the opportunity to reach into their pockets to help out Steve.

Why don't you go buy a 599 N7 to help out Nokia?

How much is that in real dollars. I can't be bothered looking.
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post #35 of 126
Quote:
Originally Posted by Prof. Peabody View Post

This is such a technical victory though. Who cares? and more importantly, why write a story about it? "By revenue" is only important if you are concerned about how much money Apple is making and running the company. It doesn't even matter to investors.

"The worlds biggest cell phone maker" is the company that makes the most cellphones. Technical metrics like how much money they generate are just not relevant to "who's the biggest" for 99.9% of the population.

Did you forget you sarcasm quotes?????? The only thing that matters to investors is how much money a company is making - its why then invest. Small unit count with high ROI is much much much (put as many as you like) more interesting to investors than high unit count with low ROI.

Investors that put money into 'eyeballs' or 'clicks' only do so because they believe the business model will eventually turn those into large ROIs. If it doesn't say bye-bye to your money.
post #36 of 126
Quote:
Originally Posted by sflocal View Post

"in the universe" or "in the Milky Way Galaxy" has a nice ring to it too.

Haha indeed. To infinity and beyond.
post #37 of 126
Quote:
Originally Posted by rwm72 View Post

...Also often forgotten is the simple reality that new computer users, such as children and the elderly are baffled by non-Apple approaches to user interaction and operating systems, in particular Windows.

... only to join the workforce and be forced to use Windows in the enterprise, which results in frustration and confusion until you decipher the non-user friendliness of the whole operation.

A generation of people have now been brought up on iPhones, iPads, and Macs, and will expect nothing less. Most of this generation will be entering the workforce and IT world. Some of them will make purchase recommendations and decisions. None of them will tolerate the unproductive, needlessly support-intensive infrastructure upon which Microsoft has built its empire.

Quote:
It is also interesting that many companies continue to dismiss Apple because of their "integrated" approach, prefering the so called "open" approach that Windows and now Android champions. But the end result is neither engages or provides any great benefit to the end user, and it is so easy to forget that end users make up 99% of the population, not administrators.

I don't understand the "open" complaint. All that Windows' "openness" has provided is the ability to write malware or simply utter crap that buggers up your system. At best this "open" approach results in a woefully inconsistent UI with one program looking and working entirely differently than another.

Microsoft can't even handle its monopoly effectively. Its flagship Office suite has become needlessly complicated bloatware that changes with every release. Major Windows updates break hardware, sending perfectly good PCs to the junk heap. Meanwhile I've lost count of the number of major OS releases my Macs have lived through.

Eventually, people making major IT purchase decisions will catch on. In the late 70s, the saying went "no one ever got fired for specifying IBM" when it came to buying computers or other business equipment. Similarly, Microsoft has been the "safe" choice too. That won't last forever.
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post #38 of 126
Quote:
Originally Posted by imactheknife View Post

I Have to say that I would love to give all these Apple head guru's a pat on the back for freaking making some of the best products out there, have some the highest customer satisfaction ratings, and are the most profitable devices sold because they are high end. I love the fact Apple has never competed in the shit low end market and yet they still WOLLOP the competition. Great Job Apple...my hats off to you....Get well soon S.J.

Great post!
post #39 of 126
Quote:
Originally Posted by AIaddict View Post

Only is the US.

Yes - the WSJ's headline (which I usually include) said that.

The US market climate is no longer attractive for them. The question is, when will that climate spread to the rest of the world (or Earth if you prefer )?
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post #40 of 126
Quote:
Originally Posted by christopher126 View Post

Wow! This is utterly amazing! I know it's competition and good for the consumer, but schmidt/google really screwed over Stevo by getting the inside scoop while sitting on apple's board. Just think how much apple would've sold without android phones pretending to be just as good as the iPhone? Oh well, I know I should just get over it and move on. But it was a dirty deal none the less!

That's why it would be cool if Steve pulled a Google and gave away a really "Apple" take on an entry level phone. I can't think of a more worthy way to use some of that pile of money than to set up Apple owned factories in places like Tanzania or Bangladesh where a really simple but very well designed phone was made using as much local material as possible. Dorms for workers, schools for kids (hell, get Oprah involved!). What a legacy.

Daydreaming is fun.
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