Wall Street convinced Nokia will sell it's handset business


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Here is a puzzle: Nokia?s cash position has suddenly shrunk from 4 billion euros to 2-2.5 billion euros? but the company?s share price is higher than it was before Nokia announced it will spend 1.7 billion euros to buy full control in Nokia Siemens Networks. Wall Street is feeling perfectly calm even though it now looks like Nokia?s cash burn during the second quarter may have been as high as 850 million euros. Why aren?t investors freaking out about A) the cost of the Nokia Siemens Network acquisition and B) the confession about the handset division cash burn level during spring? At this rate, Nokia may run out of cash during the summer of 2014.

The most plausible answer is that Wall Street is now convinced that Nokia is going to sell its handset unit.

There is no reason to worry about the cash burn rate or current cash reserves if the phone division will be gone by Christmas. Spending nearly half of its cash reserves on the NSN acquisition was such a bold gambit that few people believe that Nokia would have made it without having a clear plan for exiting the phone business.

 

http://bgr.com/2013/07/03/nokia-handset-unit-sale-analysis/

 

Yep, they are done.. 

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If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

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Nope.

 

Why wouldn't they sell it off and why are they done? They've now own the telecommunications division that actually produces some pretty damn good equipment that vendors who are sceptical of Huawei or ZTE are looking into purchasing. IMHO they're better off selling their consumer devision which is the most fickle and problematic side and focus back on the back end products that carriers rely upon.

 

 

If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

 

Agreed; I could see Microsoft buy out the division and then let Nokia go back to providing infrastructure for carriers. Revenue wise I could see them maybe merge with Alcatel-Lucent so that it would have the benefits of experience in the fixed lined back end technology (Alcatel-Lucent is heavily involved in ADSL and fibre optic gear) whilst Nokia has strengths in the area of cellular technology. It would be a win-win for shareholders and consumers alike.

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So an analyst speculates on what Wall Street might be thinking, and people start running around screaming that the sky is falling!?

 

Gimmie a break.

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i doubt Microsoft would buy (at least now) Nokia's division; it costs a lot and Microsoft is still recovering from the Skype purchase.

 

Also i don't think that Nokia is done. At least not now, since one big part of their clients are the very low end mobile phones, that most developing countries still have in masses.

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Of course,  Wall Street acts in the best interest of the American corporations. It's 100% natural.

 

I also think this is a warning for Nokia to get out of this mobile business and continue with the other networking stuff or get crushed altogether. It's very easy to do with ratings' manipulation since the top three rating agencies are also American.

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If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

 

If they are going to buy it, MS will probably use it's own brand the same as they do for all their other hardware and use it as an opportunity to rebrand it as a new era of phones.

 

With the case of Motorola, Motorola was initially split into two companies and it was the Motorola Mobility half that Google bought out. So in this process, Google managed to get all the intellectual property rights since they bought the whole company.

 

i doubt Microsoft would buy (at least now) Nokia's division; it costs a lot and Microsoft is still recovering from the Skype purchase.

 

Also i don't think that Nokia is done. At least not now, since one big part of their clients are the very low end mobile phones, that most developing countries still have in masses.

 

What was there to recover from the Skype purchase? They have over $73B in cash sitting around waiting to be put to use, so financially they didn't take a hit at all. One could even argue that $8B was a cheap buy for a VoIP heavyweight. They have already integrated Skype into Windows, WP8, and XboxOne, even redesigned some of the apps for other platforms to fit the metro theme. So much of the transition and integration is pretty much complete.

 

Financially, Nokia just does not have the resources to compete in the US and European market the same way they Samsung, HTC, and Motorola can. This alone was the reason they got into the $2B deal with MS to make WP8 phones exclusively, because they were getting desperate after lagging so far behind with Symbian.

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Unlikely, the Lumia line is already growing and making money and the asha line is quite sizeable in developing countries.

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I doubt it. They've invested a lot into the Lumia line of devices and their Asha line is doing well in developing countries.

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I doubt it. They've invested a lot into the Lumia line of devices and their Asha line is doing well in developing countries.

 

I don't think that matters.. their handset division is burning through their cash reserves rapidly.. They will be bankrupt by 2014 if they don't sell it.

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I don't think that matters.. their handset division is burning through their cash reserves rapidly.. They will be bankrupt by 2014 if they don't sell it.

Is that what you call making money nowadays ?

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I don't think that matters.. their handset division is burning through their cash reserves rapidly.. They will be bankrupt by 2014 if they don't sell it.

LOL

 

Their cash went down because the NSN transaction involved cash. I can't believe how some of you want Nokia to fail because they went with Windows Phone. You got your Motorola-MADE-IN-THE-USA-X-Phone coming, so why bother?

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If they are going to buy it, MS will probably use it's own brand the same as they do for all their other hardware and use it as an opportunity to rebrand it as a new era of phones.

 

Not so sure.  Nokia is a good well known branch of smartphone.  Rebranding may confuse consumers and it is a name that is new and no known.  But who knows what will happen.  Nokia could remain independent.  BB has survived this long so far so I am sure Nokia can hold out for a while and give time to turn things around.

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The problem with the Lumia brand is that while it may be marginally successful now it really doesn't take much for things to take a turn for the worse. Heck, Nokia used to be a dominant player and now it's an also-ran. If it can sell off its handset brand and licence the use of its name then that may provide better security going into the future. Nokia's cash reserves are incredibly low, it only managed to post a profit by scrapping dividend payments (the first time it had missed them in 20 years), its share price has plummeted over the past five years and credit rating agencies have repeatedly downgraded the company on concerns about the viability of the company.

 

People need to disassociate their feelings towards Nokia handsets and look objectively at the business realities. Nokia is struggling and while the Lumia handsets are decent the company can't afford to rely on such a volatile product sector.

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Errr, they don't rely on it. They have the wole NSN thing to now. Nokia is not a one trick pony. They're also making good money on asha in developing countries.

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It seems it might be Microsoft or Huawai

http://techbeat.com/2013/01/nokia-rumored-to-sell-handset-division-to-microsoft-huawei/

 

They've been burning through their cash reserves thanks to headset division losing money like crazy

 

 

 

LONDON/HELSINKI, May 18 (IFR/Reuters) - Nokia Oyj is tearing through its cash reserves at an unsustainable rate, raising what some analysts say are serious questions about the struggling Finnish phone maker's ability to stabilize its finances in the months ahead.

http://www.reuters.com/article/2012/05/18/us-nokia-cash-idUSBRE84H0BD20120518

 

nokia-plunge-640x476.jpg

 

Yep.. they are done.

 

 

The Trojan horse Elop has done his task quite successfully..

 

elop.jpg

 

destroyed the company so Microsoft can scoop it up for cheap along all patents and similar..

 

Nokia is at this point very close to Blackberry.

 

It's one of top 5 companies that might not see the day of light in 2014

 

http://arstechnica.com/business/2013/01/five-tech-related-companies-that-may-not-see-2014/

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I don't think that matters.. their handset division is burning through their cash reserves rapidly.. They will be bankrupt by 2014 if they don't sell it.

 

you're just mad that your dear HTC cant even sell as many android handsets as nokia is selling Windows Phones now. How things have changed. I remember you bragging how HTC sells much more android phones than Windows Phone sells total.

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