WSJ: Nokia nearing decision time with Siemens over NSN

| March 31, 2013 | 11 Replies

NSN_Logo

Whilst often described as ‘bloated’, last quarter, NSN turned a profit. WSJ notes NSN accounted for 46% of Nokia’s sales last year vs 30% when Elop arrived, NSN appeared to be valuable in this waiting game.

Siemens is however looking to leave the joint venture. WSJ says NSN is one of Nokia’s most valuable assets now, especially with the difficulties facing their handset division. ‘Analyst’ Pierre Ferragu says there probably won’t even be a buyer for the handset division (Good. Keep your mitts off :p).

http://online.wsj.com/article/SB10001424127887323501004578390430192117780.html via @joaoluisc

Category: Nokia

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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 (11)

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  1. incognito says:

    I posted a couple of relevant links to this story a week back or so in the Tips section, but am too lazy to search for them now :D

    Anyway, Siemens is definitely leaving the NSN and analysts are predicting much lower performance of NSN in 2013, and especially 2014, which might have prompted Siemens to jump off faster than they’ve planned. Either way, Nokia should definitely not count on it to save the bacon in the next quarters.

    • incognito says:

      P.S. If Nokia could, now is probably the time to sell their part as well – if the predictions come true NSN will again turn into a massive loses-generating machine as we came to know it, and Nokia at this state cannot really afford that.

      • twig says:

        Unless Siemens has a buyer, they are not selling. Listening to China Mobile and Unicom, the growth potential in China for NSN could be huge for 13-15 and beyond. Interesting timing of the article isn’t it? We all knew Siemens was looking to get out weeks ago and now, right after Nokia 920 whipped iPhones ass in the poll yesterday….Hmmmmm timing? A little Ferragu Nokia bashing? Sounds like Murdock WSJ to me. To make this article a real news story would have been an interview with Elop in which he said it was time. WSJ didn’t do that because they don’t know and this article wasn’t written for that purpose. The 920 whipped their stinking iPhone ass. Blackrock’s still in Apple big ,so watch Barclays do an anal its downgrade on the new NSN speculation.

        • incognito says:

          Both Nokia and Siemens were trying, for years I might add, to get out of that whole deal, last year’s performance just prolonged the decision.

          This has nothing to do with the smartphones department within Nokia, and there is pretty unanimous voice amongst analysts that keeping NSN around at the cost it produces on bad quarters is simply unwise.

    • Jay Montano says:

      Apologies, we miss the tips section every now and again…

    • mylumia says:

      In case you did not know, the following is the PR from Nokia:

      Press Release: Nokia reiterates longer-term financial targets in the published 2012 Annual Report

      Nokia’s reiterating their long term goals in the annual report that’s available in PDF format at http://www.nokia.com/financials. This includes Board of Director reviews and the audited annual accounts.

      Press Release: http://press.nokia.com/2013/03/28/nokia-published-its-nokia-in-2012-annual-report-reiterating-its-longer-term-financial-targets/. You may also wish to click this for the forward looking statement.

      Financial targets (long term) for Nokia’s Devices and Services business as well as NSN:

      Devices and Services NET sales growing faster than the market
      Devices and Servces Non-IFRS Operating margin to be 10% or larger.
      NSN continues to target between 5-10% for its non-IFRS operating margin

      Longer-term, Nokia Siemens Networks continues to target for its non-IFRS operating margin to be between 5% and 10%.

      By the way, do you think these anal ysts know more than Nokia itself?

  2. ms.nokia says:

    nokia and siemens have for years tried to sell nsn, there was also rumours of a nsn ipo.

    maybe now thats its in profit, siemens is using the opportunity to try and get out of the partnership.

    i hope nokia buys out siemens because nsn has become profitable and looks to have a better future against the chinese competition, also new advances in base-tower management gives opportunity for introducing new income generating services.

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