Nokia, the stock market on Thursday warning that its mobile phone
business is still rapidly deteriorating. Even though they cut 10,000
employees worldwide, this situation is still not improved. This state
seriously affect the interests of its partners, Microsoft.
The companies bound themselves together last year in a last-ditch effort to compete in a smartphones baratos
market dominated by Apple Inc. AAPL +1.32% and Google Inc. GOOG +0.01%
Now, Microsoft faces the possibility that the company responsible for
two-thirds of its mobile software shipments may not be strong enough to
give it influence in mobile computing.Nokia agreed to adopt Windows
Phone as its principal operating system, replacing its own Symbian
software, and to pay licensing fees to Microsoft. In exchange, Nokia
said Microsoft would provide it with billions of dollars to help develop
and market products.
Nokia, however, has continued to lose ground around the globe. Analysts
say that Korea's Samsung Electronics Co. 005930.SE -3.01% dethroned
Nokia in the first quarter of the year as the world's biggest teléfonos moviles baratos and cellphone maker.
Nokia for the first time accounted for less than half of the total cellphone(teléfonos baratos con android) market in its home country of Finland, according to IDC.
The company has also struggled on the low end in emerging markets
that have long been key to its success. In Indonesia, for example,
Nokia's market share dropped to 24% early this year from 52% in early
2010, according to IDC. Nokia lagged behind smaller competitors in
launching "dual-SIM" phones, which have been popular in developing
countries for years because they let consumers save money by combining
deals from two different service providers.
The loss of market share has weakened Nokia financially. The company,
built for scale, is struggling to cut costs fast enough to keep up with
the drop in volume. In an effort to cut costs as its market position
erodes, Nokia said it would cut another 10,000 jobs in its mobile
division by the end of next year. The cuts follow plans to eliminate
about 14,000 jobs announced last year, but questions remained whether it
would be enough.
Next Nokia how to deal with the present problem and come up with practical solutions is the most important.
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