Analysts point to more tough times ahead for Nokia

Analysts point to more tough times ahead for Nokia

We're starting to feel a bit guilty reporting Nokia-related news, as it seems nearly all of it is bad at the moment, and it's just not nice kicking someone when they're down.

So while we're obliged to reveal that analysts have again cut their price targets for Nokia's already-struggling stocks, we'll balance it out by saying Finland is apparently quite lovely this time of year.

The latest round of painful reality checks was triggered through the week with Nokia's admission that it wouldn't make its financial targets for the quarter.

Due to be announced later this month, the latest results are likely to reveal a higher-than-expected loss as the company continues to struggle to get its Windows Phone operation off the ground.

The company has been forced to dramatically cut both staff and facilities in an attempt to limit the damage, to the extent that its future now depends almost entirely on Windows Phone being a success. And many analysts clearly aren't convinced it will be – or at least not to the extent where it actually makes anyone any money.

“Nokia's current profit warning worryingly reflects the company having to significantly discount its new Microsoft Lumia products in order for the eco-system to gain any traction with retailers, operators and consumers,” Reuters reports analyst firm UBS as saying.

At the heart of the problem is the fact that sales of Nokia's Symbian devices have tailed off far quicker than expected, and have failed to “hold the fort” for Nokia during the period of transition over to Windows Phone – something the company was relying heavily on.

“Due to our expectations for a continued sharp decline in Symbian smartphone sales... combined with a slow ramp in Windows smartphone volume... and continued mobile devices pricing pressure... 2012 remains a challenging transitional year for Nokia,” Canaccord Genuity has warned.

Nokia's stock price has fallen by more than 50% since the start of the year alone – and wasn't exactly on the rise before that. In fact, it's a pretty telling statement about how confident shareholders are of Nokia being able to turn it around that recent rumours of a possible buyout by Samsung prompted a 9% increase in Nokia's stock price.

Read more about: SymbianWindows Phone

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JanSt / MOD  Jun. 17, 2012 at 14:57

Funny: before Nokia became Microsoft's pet property, we seemed to enjoy kicking "someone who's already down" - ie Nokia.
Then they sign up for the toldya so awards, put on a smoking kick-me sign, and we all gotta show sensitivity?!
Lets forget for a second the enormous collective harm caused by fewer Nokia phones (evolution or God will help us through the transition) .
Nokia's folly is contributing to Europe's already rather cracking eCONomic crisis.
So, I suggest we're past kissing the booboo better.
It's conspiracy time. 'defrauding" comes to mind.

SpeedyG  Jun. 17, 2012 at 15:38

Jan the Terminator shows no mercy. Poor Nokia. ;)

Pondlife  Jun. 17, 2012 at 15:52

Wow we needed analysts to tell us that, next up is do bears **** in the woods there's a report due at the end of the month.

JanSt / MOD  Jun. 17, 2012 at 17:39

Jan the Terminator shows no mercy. Poor Nokia. ;)

No... but here's the thing: where there's loss, there's profit ;)
A couple of years ago George Soros said, "I'm having a great crisis"!
And while the mainstream media give us a couple of days of "Goldman Sachs rogue Trader 'lost' 2 billion", they forget to mention the 12 billion bonus payments to ALL their 'rogue' traders....
Nokia described everything that happened now in their own report to the SEC prior to the deal with MS. And the sollution? Keep going going going gone....???
Ex-Nokia Exec Tommi Ahonen has predicted every twist and turn of this saga - sure, he likes his own wit and verbosity a tad too much. But at the core almost everything he warned about became reality within days or months...

And personally I feel no brand-loyalty; no 'allegiance or pity. Why would I? Banks are not for us, neither are corporations. I don't really care who uses what phone. I don't care how many percent suddenly think Android or iOS or fake tan are what we evolved towards all along... humanity ain't that fab. But somewhere along the line innocent folks get hurt.
And I want to know who profits from that process. And like Soros and his "great crisis", between M$ and Nokes there are people right NOW who profit big time from this historic f*ck-up. And we already know: in the foreseeable future neither Ball-mer nor Elop are gonna lose their homes - nor any sleep ;)

JanSt / MOD  Jun. 17, 2012 at 18:16

PS... hey, maybe Elop will lose some sleep after all ==>>


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