Fears of weak demand for new Nokia phonesFriday, 16 December 2011
Nokia's share price was down by more than 1.5 percent on Friday afternoon on pessimistic reports from the brokerage firm Exane BNP Paribas and Nokia rival Research In Motion (RIM).
Late Thursday, Blackberry-maker RIM posted a sharp drop in profit, offering a dismal outlook for BlackBerry shipments around Christmas.
Advertisement"RIM's fall is adding to worries over Nokia," Nordea analyst Sami Sarkamies told Reuters, while suggesting that Nokia might pick up some of the market share RIM was losing.
Exane BNP Paribas cut its price target for Nokia to 3.30 euros, down from 3.70 euros. As of Friday afternoon, the Helsinki Stock Exchange's dominant stock was valued at 3.73 euros.
The firm stuck to its "underperform" rating on the stock, after its consumer survey showed Europeans are not interested in Nokia's new flagship model, the Lumia 800.
Few buyers want Lumias
"With only 2.2 percent of surveyed buyers firmly intending to purchase the Lumia, Nokia's first flagship Windows Phone is ... far behind the current blockbusters, Apple's iPhone 4S and Samsung's Galaxy S II," analyst Alexander Peterc said in a note.
The brokerage slashed its view on sales of the Lumia to end-users to just 800,000 from its initial "ballpark estimate" of two million. This compared with launch-quarter sales of between 3.5 and four million for Nokia's previous flagship, the N8, which was released in October 2010.
Exane BNP Paribas surveyed 1,300 consumers in the five markets where the Lumia 800 had gone on sale in the week starting December 5. It narrowed the sample to 456 who said they planned to buy a Smartphone within the next month.
News source: Yle Finland
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