“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.]
Related articles:
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
I’m about to die from a heart attack from that surprise
What is true for Nokia is true for RIM. Fail to innovate; fail in the marketplace.
What?!? You mean this company committed suicide when they announced that they were killing off their platform? No way!
Nokia Corporation Sponsored Ame (NYSE: NOK )
Real Time $6.46 -0.56 (-7.98%) 10:15AM EDT.
Nokia not doing well today either.
Who could have seen this coming?
Oh wait…
🙂
(coming soon to a RIMM near you)
Nice one.
Wow, I like this quote: ‘Nokia’s potential release of a Windows Phone in Q4 is irrelevant, in our view”…
Says it all
Nokia coasted for years on an European market that would buy up whatever crap they dished out. I mean it was total and complete crap. Some of the designs were absolutely boneheaded.
Nokia is the only phone company I know who deliberately designs succeeding generations of their phones to be larger and heavier than the previous generation despite having a worse battery life.
They deserve to be on a flaming plane plummeting straight to the ground with no parachute in sight.
Nokia has had it coming.
5 Years before smartphone everyone was sick of them turning out the same monobloc symbian shite with poor build quality.
Nokia should have learnt that no matter how they tried to dress up their phones which where all essentially the same as the 5110 (with tiny incremental upgrades internal antenna, colour screen etc) …
YOU CANT PUT LIPSTICK ON A PIG
It’s really got what it had coming to it. It got lazy at the top and still hasn’t a clue what to do?
““Nokia shares fell 9.6 percent to 4.298 euros by 0930 GMT…”
How much is that in REAL money?
Ah, like Apple losing $35 in a day.
I had really cheap NOK puts at $6 for January. Looks like I was right, but 6 months premature.
So they say their new models are incompatible with the existing models, that the new models will not arrive until the end of the year and the existing models will be obsolete in a few months.
Then they wonder why their profit and stock price dropped to 1/4 of a couple of years ago. Their stupidity didn’t need Windows Phone 7 to fail, it was just another nail in an already stupid leadership plan.
It is too late to replace Elop?
> may not be able to reclaim much market share even after it begins selling new phones based on Microsoft Corp’s Windows software
May not? There are two words in that sentence that are absolute marketing poison. “Microsoft” and “Windows.” Customers are likely to intentionally avoid a smart phone that has software from Microsoft that is called Windows something, especially in Europe. It doesn’t even matter if Windows Phone 7 is good or bad, because iPhones (and Android phones) are NOT “powered by Microsoft Windows.”
And to top it off, why is there no Nokia Windows Phone 7 product already? I figured Nokia and Microsoft must have been working in secret to have it mostly ready to go BEFORE the official partnership announcement, so that the actual product would ship soon after. They sure had those Photoshop mockups ready to go…
But NO, apparently NOT. Nokia made the announcement and killed sales of its existing smartphone products for all (or most) of 2011. This is just like Palm announcing and hyping the Pre, thereby killing sales of its existing products. Brilliant…