Bloomberg Video: Nokia `Very Far’ From Danger Zone With Strong Cash, S40 update for June?

| April 21, 2012 | 109 Replies

Roger Windsor, analyst from Nomura talks to Bloomberg about Nokia. This was just some hours prior to the Q1 2012 earnings.

They’re not saying much from what we don’t already know, but then there’s not a lot in the Nokia scene you guys aren’t already aware of. They’re looking at this from a broader, more general view.

  • When asked about how close Nokia is to danger, Roger Windsor explains Nokia still has a very strong net cash position. Nokia may burn a lot of cash but in the grand scheme of things ‘very far’ from dangerous territory. However we are warned that ratings agencies will look on this as simply straight line trajectories and Nokia may see further rating downgrades.
  • Own Thomas asks why the ‘Lumina’ models have not attracted the the sort of customers Nokia’s looking for. Pros and Cons of WP – it’s very very different and that it’s very very different. It’s too polarising, and on the whole extremely unfamiliar to users who would prefer the safer route of what they’re familiar with. Although it’s great for us to know that when people use it, on the whole they like it – there’s no point being likeable after trying when we can’t get people to try the handsets in the first place.
  • They reckon the release of the Windows 8 touch based UI will educate people towards Metro (well hopefully, unless they are also alienated). Nomura is hoping that familiarity developed in the tablets will then go on to the phones.
  • Nokia apparently have priced lower end smartphone wrong.  At the moment they are saying it is difficult to find a sub $100 smartphone from Nokia and competitors are apparently outdoing Nokia there.
  • Waiting for what Nokia will do to refresh their feature phone OS. They say this low end OS update is due in June. Competitors also eating up the very low end segment. This is said to be very, very important.
Looking at it a year ago, next billion strategy of turning S40 users instantly to smartphones sounded like a good idea. That’s no longer just a smart idea. It is critical that we see this transition soon.
Nokia better have plans to do exactly this. Now we’ve had discussions before on what is a ‘smartphone’. What ever the exact or recognized definition of ‘smartphone’ is Nokia has to meet that, but also deliver a very intuitive, pleasant, fast, smooth, stable user experience at the low end too.





Category: Nokia

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