2012年7月9日星期一

Nokia's survival status in angle of stock view

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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