





Nokia HQ


Source: Nokia

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RE: In the long run
By chµck on 12/5/2012 12:33:38 AM , Rating: 3
I dunno about them losing money now. Microsoft already pays them for every lumia they make, and the new lumias have been selling like hotcakes.
Their stock is up like 30% in a month.
I think they're turning a new leaf.

RE: In the long run
By Penti on 12/5/2012 5:09:56 AM , Rating: 2
Your crazy pre Elop they sold about 100 million smartphones a year that's when they had virtually no presence or was visible in the US at all, their sales are down by more then 75% as far as smartphones go and combined mobile device ASP is way down.

They are relabeling Series 40 touch phones as smartphones to cover up their strategic mistake. It's a line / OS that should have been phased out. It's all they got when they need something for mainstream and feature phone replacements though.

Microsoft pays Nokia about 250 million USD per quarter, but Nokia also has to pay royalties/licenses per phone and also gives away Navteq and Nokia maps data, and resources to Microsoft and it's competitors.

Nokia's Nokia Siemens Networks now has to transfer cash to Nokia proper when it was covering for NSN's losses with the profits of the mobile division before. Revenue is already half was it was two years ago.

Nokia with Elop is no Nokia at all, my Finnish neighbors have seem to have got it now. They are moving on. Nokia have closed one of the only remaining mobile manufacturing plants and R&D site in a high-wage country now which was their strength, it's all low-wage and contract manufacturing from now on with no insights into their own supply chain. Why would I buy a Compal designed Nokia Lumia 800 over a HTC build? Remember this was a company of about 60 000 people with more then half of that working with production and assembly when Elop was taking over. Every asset Nokia had is already sold off to others or just legacy costs in manufacturing plants that they won't sell as running plants, just close down.

Windows Phone might now be where it should have been from the start but nobody not even the most positive and evangelist analyst projects anywhere near the volume needed to sustain Nokia. Nokia would need to be smaller than Motorola Mobility maybe even RIM in order to survive on Microsoft products. Provided they truly succeed. Microsoft should have paid about 15-20 Billion Euro for them if they wished to buy a brand name and dismantle a company to promote their own software. Finland loses billions every year thanks to this. Nokia won't have a work force period, this was about downsizing a then profitable company to kill the competition from Symbian and MeeGo/Maemo and in extension Europe.

Nokia has lost about 4 billion EUR just the first three quarters of 2012. Microsoft simply doesn't pay for lighting the company on fire and firing tens of thousands of workers. This from a company who's smartphone sales grew every year/quarter before Elop became CEO. A business that they are virtually out of today. This is something that is done in North America to companies but usually not before multi billion dollar losses and restructuring attempts.

RE: In the long run

RE: In the long run


