“Investors offloaded shares in Nokia again on Wednesday, as analysts slashed price targets for the mobile phone maker after its profit warning and questioned whether it could ever recapture lost market share,” Ritsuko Ando and Georgina Prodhan report for Reuters. “Nokia shares fell 9.6 percent to 4.298 euros by 0930 GMT, extending their previous day’s 18-percent fall. The stock is trading at its lowest level in more than 13 years.”
“Analysts said their main concern was that Nokia, once the biggest player in mobile phones, may not be able to reclaim much market share even after it begins selling new phones based on Microsoft Corp’s Windows software,” Ando and Prodhan report. “‘We would continue to avoid the stock as Symbian smartphone sales are falling off faster than expected and we are skeptical that new Windows Phone models will be able to replace lost profits,’ said Gleacher & Co analyst Stephen Patel.”
“The company said tough competition from Apple and Google as well as lower-end handset makers were driving down its sales and selling prices,” Ando and Prodhan report. “Nomura’s Global Technology Specialist Richard Windsor wrote in a note, ‘Nokia’s potential release of a Windows Phone in Q4 is irrelevant, in our view,’ he added, pointing out that it would be a high-end device likely to ship in low volumes. J.P. Morgan analyst Rod Hall said in a note, recommending investors remain underweight on the shares, ‘Even then there are no guarantees that consumers will want what Nokia is selling,’ he wrote.”
Read more in the full article here.
MacDailyNews Take: All this with Steve Jobs about to hose Nokia’s burning platform with even more lighter fluid.
[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]
Beleaguered Nokia cuts outlook, shares plummet – May 31, 2011
Beleaguered Nokia to shed 7,000 employees – April 27, 2011
Apple overtakes Nokia as world’s largest vendor of mobile handsets by revenue – April 21, 2011
Microsoft’s Windows Phone ’07 U.S. launch was a dud; Nokia worried? – April 12, 2011
Apple makes roadkill of deer-in-the-headlights CEOs – April 1, 2011
Microsoft to pay Nokia over $1 billion to use Windows Phone ’07 – March 7, 2011
Analysts not impressed with Nokia’s incoming CEO Elop – September 10, 2010