How long will Nokia go before a giant Scandinavian pacesetter is finally wiped out?


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Thursday, 21 July 2011
One can comfortable say that Nokia has got stock, stagnated and is now reversing.  This is very glaring when one looks at the speed at which Apple and Samsung are growing – companies which in the 1990s would wake up and give their seat to Nokia in the bus of train.
The fear now is that Scandinavian might in the nearest future loose some of the leading companies that gave us modern day mobile phones.

Would that be possible – that Nokia could die? “Nokia must quickly develop a portfolio of competitive working smart phones to reverse its negative trend,” says the British telecom expert, Carolina Milanesi. "But time is not on Nokia's side," she says.

Smart phone is the thing at the moment – even new comers HTC knows that smart phones are what people want not the old stagnant Nokia technologies.
Take another example; Apple in which in the second quarter sold more smart phones than any other company and makes Nokia’s overall market share during the second quarter to drop to 25.1 percent from 30.6 percent last year, according to figures from research firm Gartner.

Nokia’s problem stems from its Symbian operating system which was unable to keep up with mobile phone’s technological evolution.


Last February, Nokia, seeking a way out, entered into partnership with Microsoft aimed at tying the window operating system to its upcoming mobiles phones, of which its first products are expected to hit the market at the end of the year.

They must do this under great pressure for the longer they wait, the more its customers shift to other manufacturers. The most difficult issues now is that it is much harder to keep users because all the other smaller producers have wonderful products in the market, and, they are cheaper smarter phones.

But according to Carolina Milanesi, she does not see how the first contingents of Microsoft operating Nokia phones will do any big difference. She believes instead that the turnaround may come earlier than next year when Nokia has produced a whole new portfolio of products and to diversify them enough from the competition.

She adds that Nokia's collaboration with Microsoft was the only option Nokia had to take pointing to N9 phone which she posits that is a great phone for the 2010. “If it had come out last year, Nokia would have not had to turn to Microsoft.”

All this came however after Nokia's results for the second quarter show a deficit of €487 million. Turnover stood at €9.3 billion, 0.7 billion less than the same quarter last year.
The result was better than expected, which made Nokia's share price to rise. Apart from one-time items, earnings were on the positive. According to Nokia the achievement was more than the company had expected during the quarter.

The company feels that the current measures being taken to prop up its sluggish performance have begun to have a positive impact on Nokia's health. The current outlook, however is that Nokia is still fairly cautious. The company will still continue to cut back on its spending.
By Team

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