Nokia could run out of cash soon, say analysts

Nokia has a sales hit on its hands with the Lumia 900, at least in the US and the company has said that demand for the Windows Phone device is still exceeding supply. But will that be enough to save the mobile phone maker? Maybe not, says a new survey via Reuters of 30 financial analysts.

The story states that Nokia has already used up 2.1 billion euros in the past five quarters. On average, the financial analysts believe Nokia could burn through another 2 billion euros in cash in the next three quarters. The most pessimistic of the analysts that were surveyed believe that Nokia could use up all of its current 4.9 billion euros cash reserve amount in 2013.

Even with the Lumia 900's sales success, some analysts believe it won't be enough to save Nokia. Nancy Utterback, a credit strategist at Aviva Investors, stated, "Nokia's Lumia was an attempt to catch up, but it was simply too little too late."

Some analysts believe that if Nokia continues to falter financially, it could get some help from Microsoft. The Lumia smartphone line up is the flagship of the Windows Phone family and Microsoft could step in with some extra money to keep Nokia alive as it seeks to expand the market share for Windows Phone.

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Quite honestly I don't think their decision to go Windows Phone was wrong at all as had been predicted by some back then who favored Android.
You see, demand exceeds supply, they are in this deep **** purely due to their late turn-around and their poor management in general back in the iPhone 2G days.

I don't like Nokia at all, they cheated the government of Lower Saxony on a high level to get subsidies for Bochum.
Then they moved away to a cheaper place, which is okay to some extent, I only dispise their cheating and inhonesty.
They can gladly fade into oblivion, the only regrets I have are the many workers, so actually I only want their management to fall.
Maybe MS want to buy them at some point or something, that I could see working out, as WP is borderline doing okay with a lot of potential really.
Having in-house developed phones is key to the best interplay of hardware and software, as seen by iPhones and also Google's interest in buying Moto.
Yes, they want patents, but buying the whole company has this nice side effect of doing things more cleverly and together.
We can already see this with Samsung and Android, the fact that Google worled so closely with Samsung on the Nexus showed what a great OS and hardware combination Android can offer.

I think the best for WP and Android is to allow everyone to manufacture handsets with them, but offer an in-house solution that guarantees maximum performance and interplay of hardware and software.
This is where iOS leads and where Google and Microsoft want to head to.
The strong partnership of Nokia and Microsoft is a love born in crysis, but the way they partner guarantees them better results than the usual "just license the OS and you go put some nice hardware into some sweet case" model.

Glassed Silver:ios

Such "news" are spread because USA companies want to. Such "news" could cause problems with Nokias shares value. Politic action.

I would be pleased to be told that the stats counter is junk if you could point me to a more reliable source.

p.s. Other stats sites I have looked at seem to closely mirror what is on this site so if you know of a better source why not quote your source rather than just criticise?

BUY NOKIA STOCK! MS won't loan money to Nokia since it would destroy the relationships they have with Samsung, LG, HTC, etc. Remember they are a software company first and foremost. Buying out NAVTEQ for a few Billion would make sense or buying patents but not Nokia as a whole.

Nokia knows what they have to do and although I am sure they don't like where they are right now don't think for a moment they weren't thinking it could happen.

MS has invested wisely in 3 companies over the years that have earned them some healthy returns. Apple and Facebook. Nokia will be another MS success story from an investment side. Version 2.0 will be out in the FALL and that will be the true test for the WP OS and Nokia to release their new look and unique product offering. They haven't put their best foot foward yet and WP8 will allow them to do so.

We are getting only a teaser of what is to come from Nokia and WP.

Many of you can stop with the FANBOY BS. We all will benefit with WP in play.

The analysts are funny about the burn rate as if it will continue to be the same number year end year out for the next couple of years. No accounting for the 1B that they recieve from MS and the sales they continue to generate as WP and market shares starts to pick up. The pendulum did swing pretty heavy one way already and it is starting to swing back the other way.

mrmomoman said,
BUY NOKIA STOCK! MS won't loan money to Nokia since it would destroy the relationships they have with Samsung, LG, HTC, etc. Remember they are a software company first and foremost. Buying out NAVTEQ for a few Billion would make sense or buying patents but not Nokia as a whole.

Nokia knows what they have to do and although I am sure they don't like where they are right now don't think for a moment they weren't thinking it could happen.

MS has invested wisely in 3 companies over the years that have earned them some healthy returns. Apple and Facebook. Nokia will be another MS success story from an investment side. Version 2.0 will be out in the FALL and that will be the true test for the WP OS and Nokia to release their new look and unique product offering. They haven't put their best foot foward yet and WP8 will allow them to do so.

We are getting only a teaser of what is to come from Nokia and WP.

Many of you can stop with the FANBOY BS. We all will benefit with WP in play.

The analysts are funny about the burn rate as if it will continue to be the same number year end year out for the next couple of years. No accounting for the 1B that they recieve from MS and the sales they continue to generate as WP and market shares starts to pick up. The pendulum did swing pretty heavy one way already and it is starting to swing back the other way.

Very well put and totally agree. These stories don't get views unless they have a negative spin. If you read the Reuters story the last couple of paragraphs says

"The group appears to have sufficient liquidity, even under some reasonably onerous operating assumptions," said Jens Vanbrabant, lead portfolio manager at European Credit Management.

And there is some optimism as Nokia gears up production of new smartphones using Microsoft Corp's Windows Phone software. Analysts on average expect Nokia to sell 46 million of the phones next year, compared with 20 million expected this year.

Isn't it amazing how the headline doesn't reflect any of the positives the analysts came up with !

First time I heard of 40+ million phones being sold next year. I aslo agree with your point that it doesn't take an outside analyst to state the blindingly obvious that if you spend more than you earn you will run out of money !!! This is what they call expert analysis !!!
DUH! I think the insiders of the company are aware of this amazing logic!

My first phone was a Nokia, lots of fond memories...Too bad they didn't stick it out with their own OS's (MeeGo & Symbian) while also making Android devices...it absolutely baffles me that they would gamble on such a long shot with Windows Phone

Sonne said,
My first phone was a Nokia, lots of fond memories...Too bad they didn't stick it out with their own OS's (MeeGo & Symbian) while also making Android devices...it absolutely baffles me that they would gamble on such a long shot with Windows Phone

Sticking with what they had was clearly not an option. I do however question the method they used to execute the transition. Their CEO Stephen Elop stated they were on a burning platform and whilst that is correct because of the abrubt way in which they decided to transition they burning platform increased it's decline dramatically and to the massive detriment of the current company value chain (its current user base).

Whatever platform (or even platforms) they wanted to adopt they should have thought of ways of minimising the impact whilst how to maximise the opportunities and just cutting and running from one to the other clearly was not the healthiest way to go.

In the end a smarter more measured transition would have staved off the pressure that will soon come to bare and endanger their life raft.

I hear the margins they get out of the Lumia line are greater than the cheap handsets they've been pushing over the past few years. They don't have to become the dominant player to return to profitability. I'm sure they'll probably have a rough quarter this summer but things will equalize around the launch of Windows 8 (if they enter the tablet market and Windows 8 is successful) and Windows Phone 8.

So yeah, COULD Nokia run out of cash, sure. But with the way things are going now, with continued growth I think they'll be fine before that happens. Maybe they won't be as big as they used to be, but the business will be sustainable for the long term.

Enron said,
I hear the margins they get out of the Lumia line are greater than the cheap handsets they've been pushing over the past few years. They don't have to become the dominant player to return to profitability. I'm sure they'll probably have a rough quarter this summer but things will equalize around the launch of Windows 8 (if they enter the tablet market and Windows 8 is successful) and Windows Phone 8.

So yeah, COULD Nokia run out of cash, sure. But with the way things are going now, with continued growth I think they'll be fine before that happens. Maybe they won't be as big as they used to be, but the business will be sustainable for the long term.

Quite right regarding size but moving into tablets IMHO is a mistake at this point in time as they have enough of a challenge on their hands as it is. Execute well on the first goal of smart phones first then move into tablets. They just don't have the reserve or bandwidth to be able to execute both well at the same time.

The other thing I don't understand is that these Analysts maybe don't understand how big WP8 can be. (The impact dualcore WP8 phones will have on Spec conscious ppl is going to be big). So that's a point to consider aswell. The Windows Phone portolio will swell from super low cost phones to SUPERPHONEs. Just like Android they will start to dominate in every segment if they can deliver the devices (which I am sure they will). And this will save Nokia big time!... although it might take a year.

Zain Adeel said,
The other thing I don't understand is that these Analysts maybe don't understand how big WP8 can be. (The impact dualcore WP8 phones will have on Spec conscious ppl is going to be big). So that's a point to consider aswell. The Windows Phone portolio will swell from super low cost phones to SUPERPHONEs. Just like Android they will start to dominate in every segment if they can deliver the devices (which I am sure they will). And this will save Nokia big time!... although it might take a year.

I think I understand what you are saying but it won't be because of specs because there will never be a leader on pure specs alone. The Samsung Galaxy range has proven that whatever one manufacturer comes up with the other will not be far behind. Soon most smart phones will be running multi cores and ultra fast GPU's. At the end of the day the brand and the apps as well as the buyer appeal will rule and what chips are inside will become less important. If that wasn't the case then the now aged iPhoen4s with its teeny weeny screen and relatively unimpressive specs woould have faultered by now.

What Nokia and other WP OEMs have to do is get exposure for well spec'd phones with good marketing and Telco sales channel support. This will drive more customer demand and result in increased developer adoption (apps) which will drive more customers which will drive devs which will drive customers which will drive......

This is really a moot argument, and I think people are trying to shove Nokia's stock to the ground to make a killing in a couple of years.

Notice that some of the financial players stating Nokia is in trouble, are the same people that predict WP7/WP8 will be the dominate Smartphone OS by 2014/2015.

At the very least Microsoft will keep them alive, just like they did Apple 15 years ago. It seems to have worked out for Apple, and every financial player then said they were done as well.

thenetavenger said,
At the very least Microsoft will keep them alive, just like they did Apple 15 years ago. It seems to have worked out for Apple, and every financial player then said they were done as well.

LOL. I think Nokia is going to need a whole lot more than $150 million to stay afloat. The two won't even compare.

Nokia is charging gold for devices with old tech. Soon is coming wp8 and people will have to toss out their expensive nokias and buy new ones. And they keep dreaming in becoming the number 1...

So, these analysts aren't counting on Nokia making any sales? Seems like a rather ridiculous assumption given they're basing everything on their entrance into these markets. Of course they're going to be hurting initially.

And lets not forget a lot of these banks that have said this also are in bad shape with recent downgrades, I think the EU is at more risk of collapse than Nokia is by far.

MS will continue to help keep Nokia afloat. If things dont turn around they should buy them out and produce Microsoft branded windowsphone's. Keep the design people and make them in Asia.

This is why rating agency just recently downgraded Nokia to junk bond status.

The sales of their non-Windows Phone were dropping quicker then expected, and the sales of Windows Phone was not as strong as expected. Nokia is making a big gamble that will make or break them.

I believe MS may help them a little to get WP8 out of the gates atleast.
Its very important for MS itself.

If WP8 receives the praise it deserves, it, with windows 8 is going to be in every home which owns a PC.

This is the bigger Picture. MS is trying to attract ppl by showing them how all their devices tie together. It is very important that its NOKIA that leads WP8 for Microsoft. If they don't do it. WP will die very soon.

Zain Adeel said,
I believe MS may help them a little to get WP8 out of the gates atleast.
Its very important for MS itself.

If WP8 receives the praise it deserves, it, with windows 8 is going to be in every home which owns a PC.

This is the bigger Picture. MS is trying to attract ppl by showing them how all their devices tie together. It is very important that its NOKIA that leads WP8 for Microsoft. If they don't do it. WP will die very soon.

The great MS plan is missing a few important pieces and the first of these IMHO is they need another two hardware manufacturers. Namely HTC and Samsung. Can you imagine WP8 on a HTC One X or Samsung Galaxy type device. Users would flock to these devices purely based on raw power and sex appeal.

Now imagine a year from now and we still only have a very tired Nokia hanging on and the pathetic support from HTC and Samsung that they have had for the last few years.

Their support is VERY important because without it and assuming (as would be sensible) Nokia devices can't do it alone then MS are left with two options. Get involved in owning their own manufacturer (not their strength) or backing out of the mobile market alltogether (not an option).

jimmyfal said,
I don't think Nokia is anywhere they did not anticipate being at this moment in time...

Well said. I'm surprised people are shocked that Nokia's value is at an all time low at this moment in time and that they're losing money fast. Any good business plan would have projected this happening ages ago.

calimike said,
Let Nokia out of business

No. Imagine world dominated by Apple and Samsung? We need Nokia for healthy competition. In case of RIM, I am least bothered.

sanke1 said,
Imagine world dominated by Apple and Samsung?

This is today's reality.
No need for imagining anything.
Samsung have 60% of the Android Market, and supply 25% of the components to Apple's iPhone.
Apple's iPhone make up the rest of the smartphone market.

deadonthefloor said,

This is today's reality.
No need for imagining anything.
Samsung have 60% of the Android Market, and supply 25% of the components to Apple's iPhone.
Apple's iPhone make up the rest of the smartphone market.

This current situation (imagined or real) is not good for consumers. We need another player or two in the market to avoid the complete consumption of any competition in the telco space, music industry and video/tv industry. If you doubt what I say imaging this...2020 two manufacturers have held 95% of the population of mobile phones and tablet devices for 5 years and the customer base is so overwhelming the power it gives these companies to strong arm great content (media) deals is impossible to resist for those that transmit the content or own the content.

deadonthefloor said,

This is today's reality.
No need for imagining anything.
Samsung have 60% of the Android Market, and supply 25% of the components to Apple's iPhone.
Apple's iPhone make up the rest of the smartphone market.

Maybe in your city, however a lot of places around the world really don't care/can afford the iPhone. As the smartphone market continues to grow Apple can only loose market share - they're sales figures will continue to increase but % of market will inevitably go down.

sanke1 said,

No. Imagine world dominated by Apple and Samsung? We need Nokia for healthy competition. In case of RIM, I am least bothered.

There's also HTC, Sony, Motorola and plenty of small OEMs. You don't really need Nokia to have more than just a couple of brands.

Analysts have been doomsdaying Nokia for the past 3 years, they are trying to justify marking Nokia with such bad statuses. I think they'll be fine.

funkydude said,
Analysts have been doomsdaying Nokia for the past 3 years, they are trying to justify marking Nokia with such bad statuses. I think they'll be fine.

Nobody is trying to make Nokia to bad status! Its already in bad status and they pointing it out. Its losing money every quarter for about 2- 3 years... where in the hell have you seen a company where they lose money every year and never go to dooms days!! They will be fine untill they run out of money and go to debt in billions!!

If those statements make you happy!! say it everyday in the morning.

check the share price of Nokia. it was at it peak 4 years ago. now its $2.85 per share. I guess fanboys can never digest the bad news.

DevilsNotDead said,

Nobody is trying to make Nokia to bad status! Its already in bad status and they pointing it out. Its losing money every quarter for about 2- 3 years... where in the hell have you seen a company where they lose money every year and never go to dooms days!! They will be fine untill they run out of money and go to debt in billions!!

If those statements make you happy!! say it everyday in the morning.

check the share price of Nokia. it was at it peak 4 years ago. now its $2.85 per share. I guess fanboys can never digest the bad news.

lol, check how much Microsoft has to spend and think. You think they're going to let Nokia go bankrupt and drop Windows Phone just like that?

keyboardP said,

lol, check how much Microsoft has to spend and think. You think they're going to let Nokia go bankrupt and drop Windows Phone just like that?

Is Microsoft the parent company of Nokia? or do Microsoft own Nokia? but you sound like they own it and they shell money like anything to save it!! MS made a deal with Nokia for WP7. they didnt say they would take all nokia's lose. MS is not running charity here.
MS can try to give some money to save the company but in the end if they continue losing money they will lose MS money too.

DevilsNotDead said,

Its losing money every quarter for about 2- 3 years... where in the hell have you seen a company where they lose money every year

Umm, no it hasn't. Nokia has made loss since q2 2011.

DevilsNotDead said,

Nobody is trying to make Nokia to bad status! Its already in bad status and they pointing it out. Its losing money every quarter for about 2- 3 years... where in the hell have you seen a company where they lose money every year and never go to dooms days!! They will be fine untill they run out of money and go to debt in billions!!

If those statements make you happy!! say it everyday in the morning.

check the share price of Nokia. it was at it peak 4 years ago. now its $2.85 per share. I guess fanboys can never digest the bad news.

Good point. No company with $3 stock and that little cash could ever come back. They should just close up and give what little money they have left back to the shareholders.

DevilsNotDead said,

Is Microsoft the parent company of Nokia? or do Microsoft own Nokia? but you sound like they own it and they shell money like anything to save it!! MS made a deal with Nokia for WP7. they didnt say they would take all nokia's lose. MS is not running charity here.
MS can try to give some money to save the company but in the end if they continue losing money they will lose MS money too.

Right, so you're saying MS hardly has a stake in Nokia and Windows Phone is doing so well on its own that Nokia is providing hardly anything of any value to MS? It's nothing to do with owning or being a parent company.

Of course MS are not running a charity. They are supporting Nokia to ensure they have the infrastructure and some sort of grip within the smartphone market. MS isn't going to fund Nokia forever, but if Windows Phone takes off, Nokia has a headstart on claiming the rewards. Windows Phone would be nowhere if Nokia hadn't joined them and MS is not going to want to lose what they have so far anytime soon.

greenwizard88 said,

Good point. No company with $3 stock and that little cash could ever come back. They should just close up and give what little money they have left back to the shareholders.


hey wait!! when did i say Nokia should go doom?? I said nokia will go doom if they lose money like this!!! I dont want Nokia to doom but it with losing money. wow you make good assumptions dude

DevilsNotDead said,

hey wait!! when did i say Nokia should go doom?? I said nokia will go doom if they lose money like this!!! I dont want Nokia to doom but it with losing money. wow you make good assumptions dude

That is a reference to this little company called Apple that everyone said the exact same thing about...

keyboardP said,

Right, so you're saying MS hardly has a stake in Nokia and Windows Phone is doing so well on its own that Nokia is providing hardly anything of any value to MS? It's nothing to do with owning or being a parent company.

Of course MS are not running a charity. They are supporting Nokia to ensure they have the infrastructure and some sort of grip within the smartphone market. MS isn't going to fund Nokia forever, but if Windows Phone takes off, Nokia has a headstart on claiming the rewards. Windows Phone would be nowhere if Nokia hadn't joined them and MS is not going to want to lose what they have so far anytime soon.


the whole problem with the statement is this " but if Windows Phone takes off"
but if!!! its still hopes not reality... even with all those sales of nokia lumia its no where near to making money!!! do you realize its not only about Nokia Lumia WP7 devices... All you guys think is Lumia and WP7 since you are fans... Nokia sells ~80million phones out of that only 1 million is WP7 for last Q
I am talking nokia as a whole you are just being a fanboy of WP7 and just not seeing the whole picture.

DevilsNotDead said,

the whole problem with the statement is this " but if Windows Phone takes off"
but if!!! its still hopes not reality... even with all those sales of nokia lumia its no where near to making money!!! do you realize its not only about Nokia Lumia WP7 devices... All you guys think is Lumia and WP7 since you are fans... Nokia sells ~80million phones out of that only 1 million is WP7 for last Q
I am talking nokia as a whole you are just being a fanboy of WP7 and just not seeing the whole picture.

How am I being a fanboy? I'm saying that Microsoft will likely help out Nokia because MS needs Nokia as well as Nokia needing MS. I don't understand how that's being a fanboy. If you can't reply to the point being made, then don't bother replying, but no need for the labelling.

No one is claiming that Nokia isn't taking a risk. But what you're saying is that MS doesn't need Nokia, which is clearly false, otherwise MS wouldn't have invested so much into them. In order for Nokia to survive, MS will have to fund them until Windows Phone takes off. If it doesn't take off, then Nokia made a gamble and lost. But considering that MS and Nokia have only been partners for around 6 months, I think it's going to take more than 1.5 years before MS forget about Nokia and let them go bankrupt. I also think MS isn't going leave the smartphone market next year. Do you?

DevilsNotDead said,

Is Microsoft the parent company of Nokia? or do Microsoft own Nokia? but you sound like they own it and they shell money like anything to save it!! MS made a deal with Nokia for WP7. they didnt say they would take all nokia's lose. MS is not running charity here.
MS can try to give some money to save the company but in the end if they continue losing money they will lose MS money too.

MS currently pays Nokia $1 billion a year to have the OS on Nokia phones. Nokia wont always be losing money like slowly it will start to build up again. Nokia is not going anywhere. They will need the help of MS over the next year or two while they transition but after that they will be fine.

DevilsNotDead said,

Its losing money every quarter for about 2- 3 years... where in the hell have you seen a company where they lose money every year and never go to dooms days!! They will be fine untill they run out of money and go to debt in billions!!
.

Apple lost a lot of money for a couple of years before turning a profit in 1998. (roughly the same amount taking into account inflation, and also the same % of the companies cash flow). For the history: Steve Jobs returned in 96, made CEO 97 and did a deal with Microsoft in 97.

Is it me or is there are some clear similarities here? A company that lost huge amounts of money for a few years and then survived by significant changes (including doing a deal with Microsoft).

greenwizard88 said,

Good point. No company with $3 stock and that little cash could ever come back. They should just close up and give what little money they have left back to the shareholders.

Oh what a fabulous idea put the stockholders (who took a gamble when they invested) ahead of a whole industry of workers and a major impact on a country's economy!

When you invest in a company you take a risk, it is right and proper for that company to do all it can to execute on any strategy it deems will help secure a future.

I don't think it is easy and past record shows that mobile phone companies that have had these problems have not recovered but that doesn't mean Nokia should not try and they would probably be one of the few that may be able to pull it off.

Nokia gone? Seriously?

Nokia is not only huge in Europe, but Microsoft would never let Nokia bankrupt.

Heck Microsoft will just invest 10 Billion Dollars on Nokia.

Also Nokia did what RIM should have done, find a way of not dieing and while many "Analysts" insist that it was the wrong move, I a noob at Finances say, it was the right move and just give it 2 years with the Release of Windows 8 and WP8 to succeed.

If Nokia was so irrelevant nowadays people wouldn't even talk about it, but they do I wonder why?

People seem to forget how silly the iPhone was. When I bought my first one, an iPhone 3G running iOS 2.0. I couldn't even send a MMS, heck I was even made joked by people with 50€ phones.

Digitalfox said,
Nokia gone? Seriously?
Nokia is not only huge in Europe

Nokia was huge in Europe (past tense), but now they are declining rapidly. Windows Phone can't replace the losses from Symbian.

Digitalfox said,

Heck Microsoft will just invest 10 Billion Dollars on Nokia.

That's going to be awkward. Firstly to justify it to the Microsoft board in light of Nokia's junk stock, and secondly, how to invest it? If Microsoft loans Nokia ten billion, then that's a lot of interest to pay and could result in a debt spiral. I don't see how it could be done without unsettling existing WP7 partners.

Digitalfox said,

Also Nokia did what RIM should have done, find a way of not dieing and while many "Analysts" insist that it was the wrong move, I a noob at Finances say, it was the right move and just give it 2 years with the Release of Windows 8 and WP8 to succeed.

Nokia will be bankrupt in less than two years, and with their stock in the toilet, borrowing against their assets is going to be expensive - again, landing them in a debt spiral.

Digitalfox said,

If Nokia was so irrelevant nowadays people wouldn't even talk about it, but they do I wonder why?

The same reason people talk about RIM. A company in trouble will get a lot of press. The reality is though that Nokia's brand is tarnished. They are the old guard, and iOS, Android, and Tizen are the new players in town. If there's going to be a third ecosystem, it's going to be Tizen.

simplezz said,

They are the old guard, and iOS, Android, and Tizen are the new players in town. If there's going to be a third ecosystem, it's going to be Tizen.

Seriously Tizen? I could even believe if you said Bada, but Tizen? They said same for Meamo, Meego, Tizen is not going to change anything.

simrat said,

Seriously Tizen? I could even believe if you said Bada, but Tizen? They said same for Meamo, Meego, Tizen is not going to change anything.

Tizen ! No I am sorry but you could not be further from reality !

I don't think this is a surprise. I assumed that they're burning through what they can with the expectation that Microsoft will provide further resources. What would be surprising if MS turn around next year and let Nokia go bankrupt without helping them or acquiring them.

keyboardP said,
I don't think this is a surprise. I assumed that they're burning through what they can with the expectation that Microsoft will provide further resources. What would be surprising if MS turn around next year and let Nokia go bankrupt without helping them or acquiring them.

what business sense is there in assuming in such a situation. staking a whole company of such caliber on an assumption that if they run out of money then someone else would take up the slack. doesn't make any sense no matter which direction you look at it.

ctrl_alt_delete said,

what business sense is there in assuming in such a situation. staking a whole company of such caliber on an assumption that if they run out of money then someone else would take up the slack. doesn't make any sense no matter which direction you look at it.

Well, to get back on their feet. The massive transition they're going through is inevitably going to lose them money initially. They need to be aggressive in marketing and pushing phones out there. They dumped an existing, albeit declining platform. They're working on a new factory for manufacturing. All of this costs money. If they were not going to benefit from Microsoft's resources (both research and finance), why do you think they partnered with MS and not just become another OEM and focus on Android as well?

It's pretty obvious the plan was beneficial for both MS and Nokia and that makes perfect business sense. You're assuming Nokia's aim is to remain on MS's lifeline forever, which is obviously wrong.

Rudy said,
Nokia will be gone very soon

Nokia sold roughly 7m Windows Phones in China in just under two months, that's 7% of their market which has been booming with roughly 100m smartphone's sold in China in 2011. WP8 and some more low end devices could lead to Nokia taking the majority of their market.

Gaffney said,

Nokia sold roughly 7m Windows Phones in China in just under two months, that's 7% of their market which has been booming with roughly 100m smartphone's sold in China in 2011. WP8 and some more low end devices could lead to Nokia taking the majority of their market.

Nokia's recent performance in China has been okay but they have zero chance of becoming the dominant player.

thealexweb said,
Nokia's recent performance in China has been okay but they have zero chance of becoming the dominant player.

People said the same in 1991.

They were wrong.

thealexweb said,

Nokia's recent performance in China has been okay but they have zero chance of becoming the dominant player.

and of course you are an expert in this field, you have nothing to base this on, jst another wasteful answer.
I would not base anything on what a bank says, lets not forget that they drove the world economy in to the brink of collapse recently and these banks which are talking about this should get their own **** in order before commenting on another company.

Gaffney said,

Nokia sold roughly 7m Windows Phones in China in just under two months, that's 7% of their market which has been booming with roughly 100m smartphone's sold in China in 2011. WP8 and some more low end devices could lead to Nokia taking the majority of their market.

Apart from one MS person who stated this does anyone have any evidence (data) to prove this rather difficult to believe level of performance? I am a fan but I am sorry I just don't believe it. All the sources (which record actual usage) show that all countries have less than or close to no more than 1% of the local market other than Finoland (Nokia's home country) which is running at 7.97%

Gaffney said,

Nokia sold roughly 7m Windows Phones in China in just under two months, that's 7% of their market which has been booming with roughly 100m smartphone's sold in China in 2011. WP8 and some more low end devices could lead to Nokia taking the majority of their market.
I can sell BILLIONS of phones, if my operation cost are higher than my profit, my company won't last long