Call 911, Nokia's stock is dying

If you have a strong stomach, take a look at Nokia's stock performance over the past few months and you will see a bleak picture. As of this writing, Nokia's stock is down over 9% on the day to less than a gallon of gas. The price, ~2.16 per share, is below their 52 week range signaling that Nokia stock is not on a short decline, but a systemic fall. 

Nokia is certainly in a tough position as it has just announced that it will layoff 10k employees and is initiating drastic re-organization of the company. With Microsoft announcing that current Windows Phone devices will not be upgraded to Windows Phone 8, Nokia will have a tough time effectively marketing its current generation of smartphone. Yes, Windows Phone 7.8 will be a welcomed upgrade and will bring it to visual parity with launch Windows Phone 8 devices, they are still a dying breed as Windows Phone 8 applications will not be backwards compatible (current Windows Phone applications will work on Windows Phone 8).

Nokia's future is uncertain which is why the stock is falling but the company is not alone. RIM also finds itself in a similar position but that company is still sticking to its own OS and hardware, for now. For Nokia, it is hard to ignore the noise that Microsoft is likely to aquire the company as these rumors have been circling the Internet ever since the two announced their partnership. While switching to Windows Phone 7 was a big gamble, the future of the company will be determined with Windows Phone 8.

Seeing as Nokia is expected to run out of cash reserves in 2013, if Windows Phone 8 doesn't generate stable cash flow, the company will sink even further and put in a vulnerable place for acquisition. The question is, can Nokia maintain its heading and come out on on the other-side of Windows Phone 8 stronger than ever, or will the company simply fold under the increasing pressure of the mobile segment?

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At the end of the day Nokia will be just fine, they are going thru a very rough period right now but they are doing what needs to be done to get back to a normal operation.

Windows Phone 8 is really the only alternative if the carriers want a 3rd ecosystem. Why the hell do people always blame Microsoft for other companies failings. It doesn't matter if HP or Nokia. The truth those companies are responsible for themselves. HP bought palm when **** canned it, Nokia had couple of OSs when they should have had just one and they switched to windows phone to late. They have viable plan right now all they need execution. Also they have to many employees.

If Microsoft ends up buying Nokia the financial regulators are going to have a field day.

1. Microsoft plants Ex-Microsoft executive Stephen (the trojan horse) Elop.
2. Elop dumps Nokia's most profitable platform for one with 1% marketshare.
3. Elop issues "Burning Platform" speech that kills the share price and Nokia's income.
4. ??
5. Microsoft buys Nokia cheaply (profit!)

simplezz said,
If Microsoft ends up buying Nokia the financial regulators are going to have a field day.

1. Microsoft plants Ex-Microsoft executive Stephen (the trojan horse) Elop.
2. Elop dumps Nokia's most profitable platform for one with 1% marketshare.
3. Elop issues "Burning Platform" speech that kills the share price and Nokia's income.
4. ??
5. Microsoft buys Nokia cheaply (profit!)

except

1.elop was hired by the board.
2.the platform was dying and losing massive marketshare and the plan was approved by the board
3.symbian was being eaten alive

unless anyone can prove the board was bought by microsofts money,its just junk conspiracy

I think Nokia knew the Lumia 900 in it's current design wouldn't be upgradable to WP8. They had enough time to add these types of chips or resolution to these devices, and only push a firmware update to change the resolution and active these chips, but they choose not to go that route. So I don't blame Microsoft for Nokia's terrible stock performance. Should they buy them? Maybe, but if they were able to design the Surface tablet with so much finesse, what stops them to do the same for a phone? They're better off continuing the partnership with Nokia as is, so they can stay focus on producing the best phones possible, while MS takes care of the software and cash, where needed.

Nokia should have kept Meego for its low end devices, phasing out S40 in the process. Focusing on two separate High End series; WP on one side & Android on the other like most manufacturers. If WP8 fails to take off Nokia might well get stuck. Had they gone with a tightly controlled Android strategy & had they created a 'unique' experience they wouldn't be as they currently are.

All big manufacters will have major falls in stocks.... just because of the Surface x86 version, it shaked too much the market.
x86 mobile phones are very near with this release. and Nokia can use this advantage in association with MS. this year will end pretty much badly for all android,ios, etc manufacters...

The only thing that made Nokia fall, wall the high prices for "outdated" software in their phones...
perhaps, Nokia can or could make a Lumia exclusive with Nokia custom-Android. just to enter in the " fight" of android's makert.
But i don't seen MS letting NOKIA fall apart after the agreedment... I can't see MS buying Nokia, because RIM is on the corner selling it self, If MS wanted a Professional market, they can get it from RIM known professional market.

....no this is not reaction to anything, nice try guys, but the entire market is having one of its worst days ever. intel and microsoft are both down by a $1, sony and nvidia have lost like 0.40 cents, amd is down by 30 cents...etc. wow nice going with sensationalism, and currently nokia is down by 17 cents (atm). this is just market fluctuations at work.

I think this is to reaction of WP8 and current phone's not upgradable.

There stock was downgraded previously (to junk status) due to legacy phones sales (symbian) sales falling faster then predicted, and despite the Lumia not selling as fast as expected (it did sell). And the reports said Nokia future depended on the WP adoption.

I think I will invest in a little bit of Nokia stocks. I don't think they'll die, and this stock is very low.

mrp04 said,
I think I will invest in a little bit of Nokia stocks. I don't think they'll die, and this stock is very low.

The amount of patents and IP that Nokia holds makes the company worth a LOT more than the current value of its stock. It's a steal.

they have by far the best hardware design out there. win phone 8 releases them from the limitations of CE. I can't wait to see what they do. They'll be fine.

Nokia should release some Android devices too, there hardware and build quality has always been great so could easily compeate with HTC's and Samsung's top phones.

No point in having all your eggs in one basket, especially when there is a lot of demand for Android devices.

InsaneNutter said,
Nokia should release some Android devices too, there hardware and build quality has always been great so could easily compeate with HTC's and Samsung's top phones.

No point in having all your eggs in one basket, especially when there is a lot of demand for Android devices.

Nokia has there asha devices, they do not need android.

korupt_one said,

Nokia has there asha devices, they do not need android.

If they had some Android devices i would likely still be a customer of there's, choice is not a bad thing, especially for a company in Nokia's position.

Let it die already...

They had every chance for innovation (money, expertise, idea, market leadership, strong brand image, etc) but they couldn't come up up anything evolutionary or revolutionary when they have that chance...

What they could come up is just few nice concept videos and a semi broken OS (symbian)...

So let it die already...

MSFT acquisition will really **** off the finnish pride...but i wonder if they'll do it. i think facebook might be eyeing it too since they are partnered with microsoft and looking into handset game...especially with its greater popularity in the asian side of the world.

i think nokia is in a better shape than rim though.

They should have went with Android. Going WP exclusive is going to bankrupt them. A Lumina with modern hardware and running Android would have sold like hotcakes. Seriously.

EVH5150 said,
They should have went with Android. Going WP exclusive is going to bankrupt them. A Lumina with modern hardware and running Android would have sold like hotcakes. Seriously.

nah. android won't fix the problem of nokia, which over reliance of symbian. remember android changes every day so there would have been better device the day after. that's the problem with android: it's the kiss of death for small companies. only giants like samsung can iterate crap over and over. nokia puts time into their designs and can't put out junk to satisfy the speed of all the android competition they would face.

EVH5150 said,
They should have went with Android. Going WP exclusive is going to bankrupt them. A Lumina with modern hardware and running Android would have sold like hotcakes. Seriously.

Ahh yes, Android, the magic sauce that saves all companies... Going Android would have gave them the millions they needed to re-enter America, no wait, that was MS's money that let them do that. So if they went Android who would have paid for the millions to re-enter America?

That's right, If they went Android they'd have no money to even push their product, otherwise they would have just stayed with Meego, which is superior to Android, and the real successor to the "Symbian burning platform".

Also, it's "Lumia". ^^

EVH5150 said,
They should have went with Android. Going WP exclusive is going to bankrupt them. A Lumina with modern hardware and running Android would have sold like hotcakes. Seriously.

The only Android OEM that makes significant amounts of money from Android is Samsung. And the sorely lacking piece of the US puzzle is carrier partnerships. That's why even though the One series from HTC is an amazing lineup, the all mightly Verizon didn't bother picking up the HTC One X, Sprint mutated it into the Evo 4G LTE, and T-Mobile only bothered with the One S. And yet, Samsung managed to get the Galaxy S III unmodified on the 5 largest carriers in the US.

Google also wasn't going to give them the financial support that Microsoft will. Android is not a silver bullet.

neonspark said,

it's the kiss of death for small companies. only giants like samsung can iterate crap over and over. nokia puts time into their designs and can't put out junk to satisfy the speed of all the android competition they would face.

Nokia is a giant. Android didn't change much from 2.0 to 2.3. ICS (4.0) is what changed. Tell me another fairy tale please. Nokia brought it upon itself. I want 1 of 2 things to happen. 1) Microsoft buys Nokia (so other manufacturers can focus on a better OS) or 2) Nokia to just die completely.

As other people have noted on this post, Nokia is the only manufacturer that's able to sell Windows Phone. Samsung and HTC have no luck. Let them focus on Android and forget about trying to compete with Nokia.

EVH5150 said,
They should have went with Android. Going WP exclusive is going to bankrupt them. A Lumina with modern hardware and running Android would have sold like hotcakes. Seriously.

they have WP but don't forget they still produce and market asha, which competes with the low end android handsets, If they would have gone android they would have run out of money quite some time ago. MS is paying Nokia a billion $ to market WP. Google would have given them a crappy OS and a bigger headache.

I plan on replacing my aging Android 2.3 Galaxy S with a WP8 Nokia product once they starting shipping. I'm really impressed with the quality of the current Nokia hardware and software offerings, but at the same time I don't want to invest in the deprecated WP7.x platform.

Nokia should just push up its device announcement. That should get them some good news for investors, as well as to excite customers. And then they need to pressure Microsoft to release WP8 as soon as possible.

I have the feeling that WP8 will bring a lot of customers to the platform, and Nokia really just needs to hold out until then. It's most unfortunate that Nokia's marketing team has egg on its face because they didn't know that WP8 was dropping backwards compatibility (those beta commercials).

I honestly believe that Microsoft won't let that happen. So far Nokia has been the only manufacturer that made Windows Phone visible to a degree. If Nokia goes down, Windows Phone most likely will too.

.Neo said,
I honestly believe that Microsoft won't let that happen. So far Nokia has been the only manufacturer that made Windows Phone visible to a degree. If Nokia goes down, Windows Phone most likely will too.

They probably will, then they can buy nokia for a cheaper price!
Whatever the outcome, Nokia will still do well.

.Neo said,
I honestly believe that Microsoft won't let that happen. So far Nokia has been the only manufacturer that made Windows Phone visible to a degree. If Nokia goes down, Windows Phone most likely will too.
I tend to agree with this. It has only been since Nokia started to make phones that WP hardware has become attractive, and felt nice to the touch. Fortunately for WP, with the standard hardware support, they all performed the same (I'm sure Samsung would have gone much cheaper if they could have).

n_K said,

They probably will, then they can buy nokia for a cheaper price!
Whatever the outcome, Nokia will still do well.

This.

You have to be quite naive to not at least THINK about all that like this (not trolling, not hating, just voicing what just crossed my mind - not saying it's the truth, so chillax, ok?):
1) Nokia is weak on its legs
2) They need a new OS
3) Microsoft comes along, plays the "we need you, you need us" card. (fair enough)
4) Offer them WP7
5) Agreement
6) Release WP8 later on, directly after flagship phones got released with a now "outdated" OS that will get a sympathy update to 7.8
7) Stock is on free fall mode
8) ???
9) Pick up Nokia for cheap before they completely die
10) Profit

This would go in line with their making of a tablet -> have an in-house phone hardware department!

Again: no trollbaiting intended, I just think it's something the inevitably crosses your mind, so why shouldn't I voice it?

GS:mac

Glassed Silver said,

Again: no trollbaiting intended, I just think it's something the inevitably crosses your mind, so why shouldn't I voice it?

GS:mac

I'm sure steps 9 & 10 are going to happen, but I'm also sure that that was the intention of Microsoft nor Elop nor current Nokia. Right now Nokia is doing poorly because the current mindset is: "Their phones aren't iPhones and they don't run Android, thus they're going to go full bankrupt".

It's a self-fulfilling prophecy of sorts. And the Anti-MS/Elop-Pro-Oldschool-Nokia fanboys are going to have field day with this (talk about opportunists, love a company but jump to the competitors when they can and shout from the sidelines).

Glassed Silver said,

This.

You have to be quite naive to not at least THINK about all that like this (not trolling, not hating, just voicing what just crossed my mind - not saying it's the truth, so chillax, ok?):
1) Nokia is weak on its legs
2) They need a new OS
3) Microsoft comes along, plays the "we need you, you need us" card. (fair enough)
4) Offer them WP7
5) Agreement
6) Release WP8 later on, directly after flagship phones got released with a now "outdated" OS that will get a sympathy update to 7.8
7) Stock is on free fall mode
8) ???
9) Pick up Nokia for cheap before they completely die
10) Profit

This would go in line with their making of a tablet -> have an in-house phone hardware department!

Again: no trollbaiting intended, I just think it's something the inevitably crosses your mind, so why shouldn't I voice it?

GS:mac

pretty sure their stock would of been free falling anyway if they released their Symbian tablet and Nokia Air this year.. atleast this way they can survive in the long run

Lachlan said,
pretty sure their stock would of been free falling anyway if they released their Symbian tablet and Nokia Air this year.. atleast this way they can survive in the long run

Yeah, Nokia's strong spot was always with the hardware I think. And I really don't want them to go if they're going to continue making Windows Phones. I want both WP and Nokia to survive and succeed dammit!

Lachlan said,

pretty sure their stock would of been free falling anyway if they released their Symbian tablet and Nokia Air this year.. atleast this way they can survive in the long run


The recent drop is down to Nokia, the Lumia's took to long to come onto the market and now that WP8 has been announced sales of the Lumia's will drop for the next 3-5 months. Nokia joined up with Microsoft in Feb 2011, took them around a year to release a flagship device in the USA and over a year to release worldwide and by then it's sales lifespan worldwide is only 3-5 months and 5-8 months in the USA. Hopefully they should have several devices ready for the WP8 launch. Lumia has been a great product but it was released at a bad time, don't do it again Nokia.

Microsoft buying Nokia could be great for both companies. Nokia is losing cash because of large debts. The thing holding them back in the stock market is Microsoft might not give them any more favours regarding WP7/8 and Nokia might need a plan B which they don't have.

Microsoft could pay off the debts taking away the large interest payments and give people more security in Nokia's direction. As for Microsoft, it gives them a high profile partnership with arguable the best mobile phone hardware producer. That could really give WP8 a boost like what Samsung did for Android.

Edited by Gaffney, Jun 26 2012, 12:54am :