Press Release: Nokia comments on Fitch’s credit rating announcement

| April 24, 2012 | 105 Replies

 

Just a Press Release Heads Up. This is in comment to Nokia’s Credit Rating which is now rated as Junk by Fitch because they are not convinced Nokia can turn things around in 18 months.

http://www.reuters.com/article/2012/04/24/us-nokia-fitch-idUSBRE83N0E220120424

Espoo, Finland – Timo Ihamuotila, Nokia’s Executive Vice President and CFO, comments on today’s unsolicited rating from Fitch:

“We are quickly taking action to position Nokia for future growth and success. Nokia will continue to increase its focus on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position.”

Nokia’s financial position remains strong. As of March 31 2012, Nokia had gross cash balances of EUR 9.8 billion, and a net cash position of EUR 4.9 billion. Nokia reported its first quarter 2012 results on April 19, 2012.

http://press.nokia.com/2012/04/24/nokia-comments-on-fitchs-credit-rating-announcement/

Cheers Prasenjit Singh Bist for the tip

Category: Nokia

About the Author ()

Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com

Comments (105)

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  1. JD! says:

    Bloody CEO never comes out and speak sh!t out.

    • Per says:

      Maybe that’s a sign that he is (will be) removed.
      Elop has for sure lost credibility.

      • krustylicious says:

        I’m pretty sure that the lumia premier title will go now .

        I suspect that lumia series will eventually stay as a states only product.

        The problem is, what to fill the void that elop created in destroying Symbian.

        Nokia needs a plan b.

    • incognito says:

      That’s actually a good thing… Whenever he speaks, the share price drops…

      • krustylicious says:

        NOA3.DE is now €2.634 at the time of writing this reply. Nokia has to change direction..

        Nobody wants a windows mobile phone and if the backlash against windows 8 happens then what will nokia do then, it will be subject to takeover.

        In fact if nokia does dip under €2 it will be subject to take over, cash reserves or not.

        Elop has burnt nokia to a crisp.

        • incognito says:

          It already is a subject for take over given that its market price is lower than the estimated value, but any wise ‘taker’ will wait for Elop to get rid of more workforce and sell Nokia’s stake in NSN, Navteq and possibly the feature-phone division – as he’ll do when the money runs out given his previous track record and clear gambling behavior – and then buy them half the price, with no unneeded weight.

          If somebody wants Nokia, he wants them for their IP, which when they sell pretty much everything will be the only thing that remains worth taking, and would be severely undervalued on the market.

          Provided, of course, that Elop doesn’t sell the Nokia’s IP as his first measure of a quick fix… In which case nobody would want Nokia even if the share price goes under $1…

          • krustylicious says:

            I’m pretty sure a few companies wouldn’t mind navtag plus nokia maps.I always thought that and symbian IP is what microsoft want.

            • incognito says:

              Navteq is overrated and as I said back then, Nokia would do better just to pay for maps data than to acquire the whole company.

              If you take in the money Nokia spent to buy Navteq, and then the money to cover their loses, and divide it by the number of devices with free maps/navigation that Nokia sold to this date – you’ll find out easily that 3rd party mapping solutions were less costly. Microsoft could do that (and they do it still) easily at far lesser cost.

              Plus, Google just confirmed that they are working on Google Drive which would put the final nail in Nokia’s coffin when it comes to competitive mapping/location solutions it had over their competition.

              • incognito says:

                Scratch that… Google already has navigation tools, I assumed they’ve created a new application for the market just by looking at the name… That’s what happens when you don’t read past the title *blush*

                Anyway, Google is getting more competitive each day so Navteq will be losing it’s power over time…

                • krustylicious says:

                  I prefer nokia maps to google maps ..

                  The biggest failure was not to release nokia maps to other phone OSs earlier.

                  But its pretty clear if microsoft brought nokia it isn’t about the phones but ip or other resources.

                  Microsoft(mice etc), sony, and apple all use ODMs to produce their kit so in that since having nokia isn’t needed by microsoft.

                  • steelicon says:

                    Nokia Maps can operate and recalculate route /rerout offline. Same goes with Nokia voice dial and Nokia voice command, they just work even offline. Can’t say the same for any other phone I know of at the moment.

              • ummNo says:

                What does Google Drive has to do with mapping or navigation? It’s Drive as in harddisk, it competes with MS SkyDrive.

          • Kan says:

            Nokia Market cap = $13.54bn (intraday)
            Nokia Eneterprise Value = 6.74bn

            PE companies are after one thing – positive cashflow. Their formula is simple as long as they can have the cashflow cover debt interest they will consider a takeover.

            PE companies will load the company they acquire with debt and then sit back make some cuts let the company work its way out of trouble and then sell it.

            Problem is Nokia cashflow is not looking to good thats why the CFO continues to talk about balance sheet :D

          • Janne says:

            I agree with incognito, Nokia is unfortunately already a takeover target.

            We may disagree on how and why things got here, but make no mistake the stock-price situation is bad.

      • noki says:

        hehehhehe :)

    • steelicon says:

      Isn’t this economic and / or industrial sabotage? Finland should criminalize economic / industrial sabotage and arrest Stephen Elop.

      • kengoo says:

        ARREST ELOP and then Finnish government should acquire 51% of Nokia’s shares!!!!!!!

      • dr_zorg says:

        Will never happen. Finnish government is half corrupt and half filled with idiots. Not even a single worthy minister. Same thing with parliament.

        This Nokia destruction has their tacit agreement and Nokia BoD have strong ties with the ruling parties. Our government should ITSELF be tried for crimes against the nation some day.

        So no, we won’t hear a peep from them.

  2. Pdexter says:

    Somebody remember to turn the lights off as you leave.
    Bye.

  3. kan says:

    Effect on consumers = none.
    Effect on share price = likely to drop further
    Effect on current bonds issued = further discounting
    Effect on CDS in Nokia = insurance more expensive
    Effect on cashflow = suppliers want quicker payment
    Effect on raising finance = more expensive
    etc…

    Nokia is not in the process of raising finance as it has a decent balance sheet. Its concerns are simple – ramp up WP sales.

    • larryg968 says:

      Nokia might want to issue commercial paper which is now significantly more expensive. Read the excerpt below from wikipedia.

      “In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days. Commercial paper is a money-market security issued (sold) by large banks and corporations to get money to meet short term debt obligations (for example, payroll), and is only backed by an issuing bank or corporation’s promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only firms with excellent credit ratings from a recognized rating agency will be able to sell their commercial paper at a reasonable price.”

      • Kan says:

        Why would they want to issue short term paper? Nokia does not have a cash crisis. Sure its burning through cash but not at a rate it will be gone within a year.

        They are not highly leveraged either. I would be very suprised if Nokia issues any more new debt. If they did they would be paying through the nose.

        • So Vatar says:

          Be careful not to confuse net cash (or even worse – gross cash) with liquidity necessary to pay bills.

          AFAIK we do not know their liquidity position and short term / long term liquidity needs.

          The reasons below are all strains on short term liquidity:
          - Suppliers demand payment faster or deliver only in exchange for cash
          - Customers (carriers, NSN project clients) delay payments / hold back parts of payments as they don’t trust that a company will still be around in the future
          - Restructuring is usually a big time draw on liquidity (laying off people costs money in the short term, closing facilities costs money in the short term).
          - Costs to get cash increase (higher interest, higher insurance costs), meaning they get less cash for the same costs.

          Lack of liquidity is what actually drives a company into bankruptcy. Usually dwindling liquidity is a result of earlier losses or an expansion that is done too fast (the latter is certainly not the case for Nokia).

          Counter actions for lack of liquidity:
          - delay payments to suppliers (and contractors)
          - Sell receivables to 3rd parties to get cash faster in return for a (hefty?) fee thus reducing your profitability (increasing losses)
          - Sell facilities and equipment (and maybe lease back necessary ones)
          - sell what can be made to cash (Navteq, Patents, divisions, etc).
          - Go to the markets to get cash (stock market, bond markets, commercial papers). This is where the junk rating affects Nokia directly.

          As I wrote earlier I think (but I do not have proof) that Nokia is much closer to a cash crunch than net cash suggests. I give them 2 quarters to bankruptcy, if they are able to sell Navteq, patents, etc. for cash they have a few quarters more. However, selling these assets does not fundamentally change the underlying weakness in their operative business, so selling without changing course just delays the inevitable.

          (And I agree, the more likely outcome is that someone takes over Nokia, breaks it up and sells the pieces. My calculation says break up value is currently about 50% more than current market cap).

    • Mark says:

      Exactly. As anyone with a brain has realised now the equation is simple:

      Either Nokia increase sales substantially in Q2/Q3 or they’re dead.

      Fitch thinks they can’t, Moody’s think they might, others think they will.

      It won’t stop a hundred comments from the same people yelling the same things they did in the results, profit warning and Moody’s topic though.

      Tedious.

      • viktor von d. says:

        there are i thing 5 people on this forum that keep posting the same things over and over again,sometimes from multiple accounts, a number of times a day. trolls by definition. it’s like they don’t want nokia to succeed. they don’t understand that it’s too late to change strategy again at this point. whatever they decided last year,they must stay the course.

        and i like the comments about ms buying nokia. conspiracy theory much?

        • noki says:

          “there are I thing 5 people on this forum that keep posting the same things over and over again,sometimes from multiple accounts, a number of times a day. trolls by definition. it’s like they don’t want nokia to succeed. they don’t understand that it’s too late to change strategy again at this point”…. and so the only thing Nokia can do at this point is to get rid if the obvious incompetent that placed Nokia at this position, to bring some one that can stop sales bleeding at the best of his abilities…

          “and I like the comments about ms buying nokia” must be wishful thinking, Microsoft wont buy Nokia, only its IP portfolio! Nokia can die Microsoft wont care one bit..

          (please read the entire thing as a complete comment not as a replay to the quotations)

  4. kan says:

    The concerns raised by these analysts are quite simple. Symbian sales are falling faster than Lumia sales are rising. Even if Lumia sales are not ramping up as quick as required if Nokia can just stem the flow of Symbian decline. It just gives Lumia more time to establish.

    However if you were given £1m to spend on a) raising Lumia sales or b) stemming Symbian losses how would you spend it? Half and half or all in on Lumia?

    • goosepig says:

      Yes, Symbian sales are declining much faster thatn expected.

      No doubt this was worsened by Elops infamous ‘burning platform’ speech.

      If only they had said to the world that they would be KEEPING Symbian (as a mid-level platform), and Windows as high end they could have brought both on line at the same time.

      That way, vendors, carries etc wouldn’t have been so quick to offload the ‘burning platform’.

      They could have then shelved Symbian on the quiet, once Windows is/if established.

      If Windows failed they would have had some fall-back with Symbian. But no way they can do this now.

      Well played, Elop..

      • Carbontubby says:

        More like carriers and distributors were interested to know if Nokia had anything worthwhile in their lineup, rather than rehashing similar phones. RIM is facing the same situation now that Nokia went through in late 2010.

        At least Lumia and WP offer a way forward, rather than looking back with Symbian.

        • goosepig says:

          Not really the point I was making. WP is fine but it would have been good to have a backup in Symbian and not have such a hasty decline. Nokia need the cash.

          • noki says:

            They don’t care all they care about is LUMIA sales, If 10 symbian sales are lost so that nokia makes an extra Lumia sale that ok for some people her.

            Hey not a symbian fan myself but it was stupid move.

            • krustylicious says:

              10 to 1 is what Elop has gone for, 110 million units in 2010. 83 odd in 2011.

              How much in 2012 around 10 to 40 with about 5 to 10 million luminas…

      • krustylicious says:

        The problem is that wp is not a high end product. That along with the major dislike of the metro ui Lumia is just bombing.

        the samsung s3 is rumoured to have pre orders of 10 million..

        Nokia is in a bigger mess than RIM is.

      • Mark says:

        “No doubt this was worsened by Elops infamous ‘burning platform’ speech.”

        Possibly, but not nearly as much as the availability of cheap Androids did.

      • viktor von d. says:

        except that carriers in europe at least didn’t want symbian handsets anymore. the u.s simply rejects it, an asia is moving very fast to android in the low end. the average consumer doesn’t know anything about elop’s speech or care about upgrades.again i say, the average consmer. symbian is failing because of symbian,it started to fail in 2010.

        what i don’t understand is why they dodn’t keep meego unaltered for the low end. the ui and hardware is perfect now to replace the s40 and symbian phones. i guess it had a lot to do with intel moving too slow..

        but it doesn’t matter that much. people don’t realise it, but this was always a 3 year plan, i don’t think anyone in the company had the illusion they would be on top again in 6 months since the first lumia launched.i’m glad sales in the us are good and is most of europe,despite all the bullshit spread around.all they need is to launch more devices for the low end with tango,a sisterphone for the lumia 900,and they will be good in q3 and q4. after that wp8 and all the nokia goodies we have come to know and love so far, and true superphones in the 199-299 pricerange like the iphone ans galaxy s3

    • nn says:

      I would spent it on c) Harmattan/MeeGo, d) Android or e) any strategy other than WP, because it clearly isn’t going to work.

  5. Diogo says:

    Is late now… Nokia is died!

  6. BellGo says:

    That money that they have will run out before 2013 ends, if things keep going on like this.

    And when 2013 begins Nokia will be irrelevant to the market. (again assuming that thins keep going to the direction they are going now)

  7. GordonH says:

    A company with stupid BOD is bound to make stupid errors.

    Nokia as a company is filled amazingly stupid Board Of Directors…certainly Nokia is bound to make amazingly stupid errors.

    • dr_zorg says:

      Not stupid. Corrupt.

      Though in the larger scale of things, yes, stupid too. In allowing something as great as Nokia to die in exchange for personal gain.

      • GordonH says:

        I’d go with stupid.
        Nokia “was” a good money maker with good products, fanbase, respect, talent and an decent development QT roadmap.
        The BOD “could” have easily steered Nokia to make massive loads of money. And while Nok advance and earn, these stupid Board of Directors could have profited with their shares and dividends.

  8. Roninho says:

    Fitch couldn’t see Lehman Brothers and the rest of Wall St failing 1 week before the company went bust. How they have any credibility is beyond me. The same goes for the rest of the credit ratings agencies, they are like smoke alarms that go off after the house has burned down.

    Nokia still has plenty of cash and is rated Junk while pools of mortgages backed by broke American consumers were rated AAA, go figure.

    • Kan says:

      They are all paid shills. Most likely those short Nokia are licking their lips. With some analysts setting a €2 stock target for the coming year they need the “rating agencies” to confirm the bias!!

    • Carbontubby says:

      Wall Street is a phenomenon unto itself. It escapes all rational thought.

      • incognito says:

        Kind of like Nokia? ;)

        • Janne says:

          Kind of like Symbian. ;)

          • incognito says:

            Sans the irrational part… Can’t blame software for the irrationality of its maker.

          • krustylicious says:

            Symbian itself isn’t the issue. A real time os is actually what is needed on a mobile, not java vm.

            Nokia dug their heads into the ground and did not move symbian into new api’s and standards.

            fixing symbian^3 to main 640×360 and single core was stupid.

            Nokia could have done 3 or 4 screen standards say ..

            640*360
            640*480 (for e6)
            960*640
            1280*720

            Also Nokia has been hell bent on being at least 1 cyle behind others in cpu/ram.

            The n8 should have been dual core and at least > 800x pixels but it wasn’t .. Both the n8 and e7 were compromised in some ways.

      • Kan says:

        It’s corrupt and a tax and drain on the real side of the economy. Who else would be bailed out for such a catastrophic level of corrupt behaviour and then get paid a bonus for it.

        Mafia bosses and racketeering is not even in the same ballpark as Wall Street.

        Read Matt Thaibi.

    • krustylicious says:

      The problem is that 10billion cash reserves will go in 4 quarters or less if the current decline in sales continues.

      That is a true statement and something which is alarming ..

      It is also the second credit agency to do this in a matter of weeks.

      The pr spin by nokia about lumia has failed .

      • Kan says:

        Dude.

        Cash reserves will not go in 4 quarters unless ELop nukes the whole business including WP.

        Credit Agencies work in packs and have a herd mentality.

        • krustylicious says:

          true its more like 6 to 10 quarters with negative revenues from nokia.

          And yes credit agenies just like “analysts” do act in heard mentalities and biased.

          The point is that nokia can’t wait for 2 years to turn itself around it has at best 2 quarters .. I would say if lumia is flop again this quarter. wp is the wrong decision and nokia has years work to do to recapture the market.

          • Kan says:

            There are short term concerns and long term concerns.

            Short term Nokia needs to ramp up Lumia sales and stem losses due to Symbian and Featurephones.

            Long term if WP becomes a success then how much is MS wanting to derive from the relationship?

    • nn says:

      I agree that the rating agencies generally don’t know what they are talking about. The problem is that at minimum Elop with his actions is going to ingrain into people minds that Nokia will be bankrupt soon, this will repel consumers, developers. And it’s going to have financial repercussions even without Nokia issuing new debt, for example supply chain partners are going to demand bigger prepayments or other assurances, etc.

  9. spacemodel says:

    “We are quickly taking action to position Nokia for future growth and success. Nokia will continue to increase its focus on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position.”

    http://www.youtube.com/watch?v=s27Oq5ot0ZI

  10. nokia destroys itself says:

    at nokia, everybody is ceo, except for elop.

  11. mdev says:

    The worst thing is that now the scent of blood is in the water and the sharks are starting to gather and circle…

    • Apple says:

      Apple has been circling for quite awhile(loop), and has not come up with anything new really in a long time. Samsung is going strong, but apple start declining, dont know yet what it will do to nokia.

      The good thing with MS-Nokia is that nokia wont have to invest as much in the OS as before, and concentrate on hardware.

      • mdev says:

        Apple is doomed to go back to few percent market share. It is the Windows – Mac wars all over again. The open and flexible system always wins. However WP is anything but open and flexible and therefore the “Windows” of mobile OSes is Android. Android will rule them all soon enough.

        That is why it is utterly stupid from Microsoft to try to emulate Apple and not Android.

        • Keith says:

          Would you like to cite a PC vendor that makes more than Apple? What do you prefer, profit or bragging rights? But aside from that, Android is no Windows–it is an inefficient, buggy, fragmented mess that is leaving plenty of room for able competition. Android is more like Linux than anything and every year is supposed to be the year of Linux because it is free and open and yet it is remain stagnated around 1% usage. Tell me again how open and flexible always wins. Windows and Apple consistently win because they are winners producing compelling products and openness or lack thereof is not even relevant for picking winners.

          • Apple says:

            Good points..
            Androids openess is not so open anyway, yes you can make your own changes, but google rules what is changed, so in the next version you have to redo your changes..
            I read that many companies dont want to touch android for that reason, and because it is so fragmented and gets worse all the time.

            Id like to see linux getting more popular but i dont think it will get mainstream in many years. One great thing with windows is that you can use the c# youve learned for making desktop apps also for mobile app development.

            Before microsoft did not have anything useful in the mobile area, but now they have a good OS also there, so they can finally start competing with apple.

            Android then again are lacking desktop platform. Hard to see where it all will end. Hope Nokia will survive till windows phone get mainstream

            If Nokia fails, I dont want a mobile anymore :(

          • mdev says:

            You really don’t know what you talking about, do you?

            When Apple was only in PC business, it was nowhere near Windows (few percent market share) and even PC-makers like Dell and HP was much bigger than Apple. And the profits were very bad too, in 1996-1997 Apple was so bad that many predicted it will not survive more than few years.

            The Apple big raise only came with iTunes and iPod and continued with iPhone. The genius of Steve Jobs was to recognize in 1997 that Apple is not only badly beaten but made entirely irrelevant in PC business by Windows and he started entirely new market without the Microsoft competition.

            Windows is open not in the sense that it is open source but it can be installed on any hardware, its APIs are open for everyone to use for any purpose and anyone can write and distribute software for it without need to be “approved” from Microsoft and distributed solely by Microsoft.

            Android is already beaten Apple by far in market share, what world you are living in? The big margins of Apple are already starting to erode and it will be only downhill for them from now on.

            • Keith too says:

              I obviously know more about this topic then you. Globally, Apple’s PC percentage is still only 7% but they grab about 30% of PC profits with that 7% share.

              As for mobile, Apple makes way more profits on their iOS products and all the Android profits combined. And Apple margins eroding? Since when–they keep blowing the doors of every quarter with new records.

              Also, Apple was already back to being a very profitable company based on high margin Macs long before the iPod came along.

              That said, Apple is too closed and too overpriced but their model is far superior to Google’s and Androids. But I like the middle ground that Windows Phone is staking out though it is more towards Apple than Google but that is good thing. iOS has style and Android dosn’t.

  12. stephen ahonen says:

    If WP fails & Nokia goes bankrupt, WP fans will blame Symbian & MeeGo fans, accuse them for sabotaging lumia sales

    • krustylicious says:

      You can’t blame the public, when a product (wp 7) is uncompetitive or a downgrade from an existing product (symbian).

    • mdev says:

      I don’t think that this will make any difference one way or the other. Even if Elop stands and says: “Sorry, guys, I am idiot”, this will not change anything. I couldn’t care less about the WP fans and their opinions, if WP wasn’t the executor of Nokia.

  13. Jill says:

    When is the saviour coming (Meltemi) ?

    I think ‘Meltemi’ is the last throw of Nokia at the game & if ‘Meltemi’ is all about the cheap stuff (S40) then ‘Good Bye Nokia’ & F**k Elop.

    • RJC says:

      As far as I know, it is about the cheap stuff. It’s the substitute for S40. It’s not the new Maemo/MeeGo. WP is for high end and Meltemi for low.

    • GordonH says:

      Nokia giving QT a bad image by not showing any roadmap for the “next billion”. Basically Elop wants developers and consumers to go the WP7 route.
      Elop focused on “eliminating” all internal competition.

  14. Cod3rror says:

    “We are quickly taking action to position Nokia for future growth and success. Nokia will continue to increase its focus on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position.”

    Hahah that response is like a knocked out boxer shaking and telling the referee he is alright.

    Oh, guys and girls, I’ve been telling you this for so long. Before me Eldar has been telling and warning Nokia for a LONG time.

    It was all apparent and now you’re finally realizing it too.

    Nokia is DONE.

  15. Sonny says:

    Gosh I wish someone would interview elop and ask him the questions most people are scared to ask like, why do you drop everything and go to a OS which isnt even ready till the end of 2012? why didnt nokia/elop ramp up the hardware of symbian devices and make them atleast competitive against the competition, why did he do the burning platform memo? for god sakes he’s the CEO of one of the cellphone company on the planet! Just want someone to put elop on the spot and asking him some nail biting questions!

    • incognito says:

      We need Rory Cellan-Jones to interview him, just like he almost brought Mike Lazaridis to tears: http://news.bbc.co.uk/2/hi/programmes/click_online/9456798.stm ;)

      Tough questions need to be asked…

    • BobHyde says:

      I have a theory. .

      Elop made big promises to MS that, unlike other OEMs, Nokia would be totally committed to the WP eco-system.

      MS have always stated that their platforms failed because OEMs were distracted by other operating systems and failed to be committed.

      This is why Elop had to burn Nokia’s own OS and not flirt with Android.

      Balmer/Elop’s long term plan was to hold up in a bunker, wait for Android to collapse and it’s OEMs to come running to the WP eco-system.

      They believed, along with some others who will be named at a latter, that WP7/WP7.5 was competitive and only needed a marketing push for Symbian users to switch over.

      Hence they targeted markets like the UK where the N9 (which had to be released due to past agreements with Intel) was not made officially available.

      I think it is safe to say that things are not going to plan hence the trouble Nokia now finds itself.

      As for those others. I believe commentators like Eric Savitz (Forbes) was a strong flag weaver for the WP eco-system. Although now he has little to add on the recent rating downgrade.

      I have a feeling that other OEM’s will think very very hard before showing MS the same committment as Nokia for a very very long time.

      I also think that the current CEO of RIM would be a very brave man to jump onto the WP platform.

    • ashok pai says:

      if they had given the same time they gave for wp8 to meego or improving symbian, (minus the burning meo) Nokia would still have made gobs of money.

  16. Sonny says:

    I find it really hard to understand why couldn’t nokia use WP for the USA and Meego/Symbian for the rest fo the world? If the rest of the world feel they want nokia lumia’s too then fine nokia can release WP to the rest of the world. If the people in the US wants meego phones then nokia could have gave them that option as well. Why couldn’t they do this? I mean look at samsung, the have android,bada,tizen and still they have WP also. same with htc and the others! why cant nokia? geez.
    Wp/Meego – High End
    Symbian/Meltemi – Mid End
    Meltemi/S40 – Low End

    That would have been awesome.

    • Just Visiting says:

      Well, Nokia is essentially focused primarily on Lumia for the U.S. (and to a smaller degree, other parts of the world); Symbian/Meego still seem to have more markets than Lumia outside of the U.S. But, going forward, they will tier the rollout – supplant Symbian with Lumia/WP devices at the appropriate time and opportunity worldwide.

  17. q says:

    It’s really odd the bizzaro world Symbian fans live in. Nokia is dying because of one reason, and one reason only: refusal to move from Symbian under the previous regime. Those who think the burning platform memo has anything to do with poor Symbian sales are delusional; the average consumer doesn’t give a shit about such things, but they do notice that Symbian is an utterly shitty smartphone platform that cannot compete with Android or iOS.

    Aside from migrating to WP, Nokia’s other choice was to become another Android OEM and forego the cash Microsoft was offering. It’s difficult to say if that strategy would have succeeded.

    Whatever the case, Nokia was all along in a poor position, one that would be difficult to get out of whatever choice they made. And it’s because of Symbian, not WP7.

    • noki says:

      You are just attempting to influence perception via false information.
      Fact Symbian was dieing, (everything is)
      Fact sales were still going up.(before memo)
      Fact after the memo sales plunged.

      Now…..
      “the average consumer doesn’t give a shit about such things” debatable, but more importantly the retail and the, carriers do…and those are probably more important to the “average consumer” than what the “average consumer” knows about a platform…

      “Aside from migrating to WP, Nokia’s other choice was to become another Android OEM” I wonder how come you say that wp was a migration and android was becoming another Android OEM, what is the difference in WP how is Nokia not a OEM of WP?

      “and forego the cash Microsoft was offering” Let me ask you how much money as NOKIA spent promoting the WP??? way more than Microsoft gave nokia. Plus if you look it up Microsoft as not really gave that money to nokia.

      “Whatever the case, Nokia was all along in a poor position”
      fact at the (memo) time Nokia sold more smartphones than apple and Samsung combined. ( you call that a poor position?)

      • Janne says:

        “Fact Symbian was dieing, (everything is)”

        Ehheheh… way to try to belittle the point after conceding it. Try harder.

        • Carbontubby says:

          Fact: whatever I say it is ;)

          This bullet-points style of debating gets old real fast… we want eloquently argued facts with figures, without resorting to personal attacks.

          Symbian is dead, long live Symbian :) Maybe Nokia really should get back to making rubber boots.

      • Keith says:

        If Symbian sales were increasing before the memo, why was Symbian’s data usage share dramatically falling worldwide before the memo? Maybe lots of people were buying Symbian phones and not using them?

        • Ebon & Unicorn N9s says:

          The stat is number of hits to websites from mobile phones..

          And many in Asia\Africa don’t browse on their phones often due to high mobile data charges like they do in US\Europe..

    • Sonny says:

      tell me If Nokia completely stopped selling Symbian devices from Feb 2011 how many phones would Nokia have sold till now? Nokia fucking needs Symbian now more then ever and you saying its all Symbian’s fault just shows how delusional you are! Yes Symbian has its faults but so does the other smartphone platforms and WP surely has a lot more then Symbian. Nokia belle also is far better then pr1.0 and even Gsmarena said its a revolutionary step forward! The people who really should be blamed is Nokia themselves. I mean putting 2009 hardware in a 2012 phone? surely that’s not Symbian’s fault.

      • GordonH says:

        “I mean putting 2009 hardware in a 2012 phone? surely that’s not Symbian’s fault.”

        Nicely put… Blame everything on the goat.
        In this case BODs are blaming everything on Symbian.

  18. npo4 says:

    Hopefully Apollo will come and prove them wrong :P

  19. Grendell says:

    Nokia’s statement is a load of Caca! Fitch rated them at junk because the early signs of present vector they are taking does not inspire confidence nor show signs of reversing the initial repercussions of the chosen path.
    Their argument is that they shouldn’t be rated as junk because they’re cutting costs and they still have a lot of money, which is utterly beside the point! People all around them are seeing the iceberg but they refuse to change course, hence the rating.
    I’ve said it before (even before Tomi). Only and idiot repeats an experiment expecting a different outcome. Elop is proving himself less the CEO and more the Don Quixote de la Mancha of Nokia (and that’s putting it lightly). To be honest he should be more closely identified with Emperor Nero..as Nokia burns.

  20. stephen ahonen says:

    There are some real evidences that Nokia sold its soul to Microsoft & sacrifice itself for saving WP

    1. announcing the death of Symbian & MeeGo before WP is ready to compete. Elop won’t let Symbian & MeeGo disturb WP sales, he thinks Nokia fans won’t switch to WP as long as Symbian still alive (check WP’s performance before used by Nokia)

    2. gave N9 abnormal price, to ensure Lumia 800 defeat N9. N9′s hardware is similar with Galaxy S, the price should be similar (less than 400 EUR at Q4-2011)

    3. release N9 at countries with small market, large market is left

  21. steelicon says:

    http://www.phonearena.com/news/Now-S-P-downgrades-Nokia-stock-to-junk_id29568

    Now S&P downgrades Nokia stock to “junk”
    Posted: 2 hours ago, by Victor H.Categories: Nokia Windows Symbian Bookmark
    Share:Discuss12

    Only a couple of days after Fitch downgraded Nokia stock to “junk” status and gave the Finns a negative outlook, now Standard & Poor’s follows suit by similarly decreasing Nokia’s credit rating to “junk” or BB-. This removes the company from S&P’s list of low investment companies to non-investment status, and on top of that the rating agency gave the Finns a negative outlook with the possiblity of another downgrade happening in the future if the situation doesn’t stabilize.

    Nokia is sitting on a solid pile of cash, but it’s already started burning it and that concerns credit agencies. Moreover, S&P says that even if Nokia’s Lumia series meets expectations, the company won’t be able to make up for a huge decline in Symbian sales. Symbian, announced by Nokia CEO Stephen Elop as a “burning platform,” is what’s keeping Nokia afloat. Last quarter, in the first three months of 2012, Symbian really started burning and Nokia revenue fell accordingly.

    “We still expect revenue from Lumia smartphones to grow over time but not sufficiently to offset a rapid decline in revenue from Symbian-based smartphones over the next few quarters,” S&P explained.

    Here’s the list of factors that S&P wants to see dealt with to fix the rating:
    - revenues in the Devices and Services division should stabilize,
    - cash burn should decline significantly,
    - non-IFRS operating margins should return to at least mid-single digit percentage levels.

    Nokia defended its positions earlier when Fitch dropped its ratings, and it echoes the same arguments now:

    “As we have detailed in recent announcements, Nokia is in the middle of a transformation program which encompasses every aspect of our business. We are implementing a decisive action plan to position our company for future growth and success. The main focus of these actions is on lowering the company’s costs, improving cash flow and maintaining a strong financial position, while bringing attractive new products to market,” Nokia CFO Timo Ihamuotila responded.

    Nokia’s net cash reserves stand at around $6.48 billion (4.9 billion euro) currently.

    source: Standard & Poor’s, Nokia

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