Nokia gets hit with second junk credit rating drop

The bad news, at least financially, for Nokia continued today. Reuters reports that the second of the three major credit rating agencies, Standard & Poor's, cut its rating of the smartphone maker down to "junk" status. This follows a similar downgrade by Fitch Ratings earlier this week.

In its statement, S&P said, "We still expect revenue from Lumia smartphones to grow over time, but not sufficiently to offset a rapid decline in revenue from Symbian-based smartphones over the next few quarters."

As they did with Fitch's downgrade, Nokia sent out a press release with this statement about the S&P decision:

As we have detailed in recent announcements, Nokia is in the middle of a transformation program which encompasses every aspect of our business. We are implementing a decisive action plan to position our company for future growth and success. The main focus of these actions is on lowering the company's costs, improving cash flow and maintaining a strong financial position, while bringing attractive new products to market.

Nokia also repeated that their financial situation "remains strong" with a net cash amount of 4.9 billion euros.

A new report from Strategy Analytics this week claims that Nokia is no longer the number one maker of mobile phones for the first time in over a decade as it lost that position to Samsung in the first quarter of 2012.

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Nokia also repeated that their financial situation "remains strong" with a net cash amount of 4.9 billion euros

Not if you're bleeding nearly 1 Billion Euro's a quarter it isn't. That gives them what? 5 quarters to turn it all around before they start going into debt.

Nokia wouldn't be in this position if they actually made Windows Phones earlier. Phones like the N8 should have been running Windows Phone.

and no, MeeGo wouldn't have made a difference either.

FalseAgent said,
Nokia wouldn't be in this position if they actually made Windows Phones earlier. Phones like the N8 should have been running Windows Phone.

and no, MeeGo wouldn't have made a difference either.

The N9 got good reviews...

This is the same S&P that rated favorably a ton of junk debt just a few short years ago, which helped lead to the economy collapse in 2008?

The same S&P that still rates the US Government debt as "AA" as if there is chance that the debt would ever be repaid?

LMAO!

The US can repay its debt any time. It can print 15.5 trillion dollars and be done with it.

Well, along the way the US economy would probably collapse due to high inflation etc, but it can in theory be done.

As long as the US dollar is the reserve currency, there is no such a thing as the US not being able fulfill its debt obligations.

BigBoy said,
This is the same S&P that rated favorably a ton of junk debt just a few short years ago, which helped lead to the economy collapse in 2008?

The same S&P that still rates the US Government debt as "AA" as if there is chance that the debt would ever be repaid?

LMAO!

LOL, true, read The Big Short, it was a pretty good book about this subject.

AtriusNY said,
The US can repay its debt any time. It can print 15.5 trillion dollars and be done with it.

Well, along the way the US economy would probably collapse due to high inflation etc, but it can in theory be done.

As long as the US dollar is the reserve currency, there is no such a thing as the US not being able fulfill its debt obligations.

You don't know how economy works. It's like saying: yes, I could be a millionaire, all I need to do is kill millions of people and rob them.

AtriusNY said,
The US can repay its debt any time. It can print 15.5 trillion dollars and be done with it.

Well, along the way the US economy would probably collapse due to high inflation etc, but it can in theory be done.

As long as the US dollar is the reserve currency, there is no such a thing as the US not being able fulfill its debt obligations.

The more money the us prints, the less it is worth, also not how you pay billions of national debt. It'd be like paying your loans with your own money you printed that can be used to buy stuff in your own little store.

Nokia is in trouble if the Lumia 800/900 can't be upgraded to Windows 8. They bet the farm, the marketing has been huge, and now everyone who bought in are going to get left in the lurch 6 months later. Not good. Not good at all.

I love Windows Phone, but if the Lumia and Titan II can't be upgraded, I'm going back to my iPhone. No complete bluetooth profiles support plust this is just more than I'm willing to endure when everything on the iPhone works.

Wait for Nokia stock really bottoms out [practically has already], buy stock. Long term, you'll see huge gains. Apple was in the same situation 13 years ago.

rfirth said,
Apple was in the same situation 13 years ago.

The difference was that Apple was almost sunken -- and then Steve Jobs returned to save them. Nokia doesn't have a Steve Jobs. Nokia only has Stephen Elop -- the man who tied them to the anchor (Windows Phone) in the first place.

BallmerGates said,

The difference was that Apple was almost sunken -- and then Steve Jobs returned to save them. Nokia doesn't have a Steve Jobs. Nokia only has Stephen Elop -- the man who tied them to the anchor (Windows Phone) in the first place.

What? LOL, no, Microsoft saved Apple by giving them money.

Same situation with NOKIA

FoxieFoxie said,

What? LOL, no, Microsoft saved Apple by giving them money.

Same situation with NOKIA

Not really:
In 1997/1998, Steve Jobs arranged a deal with Microsoft including patent and technology cross-licensing agreement between Apple and Microsoft; Microsoft agreed to create new Mac versions of Office and Internet Explorer for the following five years, on the other hand Apple agreed to install Internet Explorer as the default Web browser on all shipping Macs during the same time period.
Furthermore Microsoft invested in Apple $150 million dollars that MS used to buy 150,000 shares of Series A, nonvoting, convertible, preferred stock at $1,00 per share. Microsoft had the option after August 5, 2000 to convert those preferred shares, for $8.25 per share, into common stock. Microsoft converted slightly less that half of its shares into 9 million shares of common stock in 2000. After that the company converted the remaining non voting shares into another 9.2 million shares of common stocks.

To summarize Microsoft spent a little over $151 million to acquire 18.2 million shares of Apple stock, at roughly $8.31 per share. All the shares were sold in 2003; you can calculate the profit by yourself........

Besides, at the time, keeping Apple alive was very important for MS because they need a competing company: MS was getting in the Antitrust storm and show it was not the only player in the arena was of paramount importance for them.

It was nice knowing you Nokia...should have stuck further with MeeGo while building Android devices in the interim...rather than a platform that nobody has any interest in

Sonne said,
It was nice knowing you Nokia...should have stuck further with MeeGo while building Android devices in the interim...rather than a platform that nobody has any interest in

Sure, just be another Android OEM.

Ask Motorola or LG how they feel.

Sonne said,
It was nice knowing you Nokia...should have stuck further with MeeGo while building Android devices in the interim...rather than a platform that nobody has any interest in

If only it were that simple. They knew they'd be taking the hit but they have MS to hold them up. Who'd have held them up while moving to Android? Google? Possibly but with 50% of the market, would they care? MS has a lot to gain or lose with Nokia so you can bet they're in it for the long run.

Not many have interest now but as the platform grows and becomes more robust you can bet people will start to notice.

Sonne said,
It was nice knowing you Nokia...should have stuck further with MeeGo while building Android devices in the interim...rather than a platform that nobody has any interest in

I remember few years ago I read an article here saying: "Nokia Chose to die with Symbian" every body knew symbian is dying and nokia is sticking with a dead platform. nobody attacked nokia this much though.that mistake is reflecting now though as we see. It has nothing to do with windows platform. every body knows windows has a bright future. wait and see untill windows 8 is released.

Sonne said,
It was nice knowing you Nokia...should have stuck further with MeeGo while building Android devices in the interim...rather than a platform that nobody has any interest in

There is plenty of interest in Windows Phone.

Android isn't profitable at all for most OEMs that are making them, by the way. The only OEM that seems to be profiting from android is Samsung.

Sonne said,

LG comes back to profit through smartphones and TVs
http://www.electronista.com/ar...215m.through.lte.and.3d.tv/

and

Motorola Stock in 2007 = $18.14
Motorola Stock now = $51.25

You were saying, lol?

That doesn't reflect how well Android is doing for them. Motorola Mobility is going to announce another big loss on May 1st for Q1 2012. Google's acquisition is the only reason Motorola's stock is higher. Rumors suggest that Google is going to dismantle Motorola in the coming year.

PmRd said,
Lol **** Android. Even Google is losing money with it.

Except they are not. Android is free; google makes money from phone makers when they install google apps on the phone. Also Samsung just became the biggest phonemaker in the world and is posting record profits.

FalseAgent said,

There is plenty of interest in Windows Phone.

Android isn't profitable at all for most OEMs that are making them, by the way. The only OEM that seems to be profiting from android is Samsung.

LG, HTC, Motorola's android divisions have all reported profit since adopted, so the above is just factually incorrect.

Gungel said,

That doesn't reflect how well Android is doing for them. Motorola Mobility is going to announce another big loss on May 1st for Q1 2012. Google's acquisition is the only reason Motorola's stock is higher. Rumors suggest that Google is going to dismantle Motorola in the coming year.

Another big loss? Samsing's expected profit for the first quarter; is $5.12 billion, a whopping 96.6 percent increase compared to the same time period a year ago. The final results will be released later in April. http://www.pcmag.com/errormvc/...=/article.aspx/curl/2402704

Almost every manufacturer that has adopted Android has profited. Samsumg has surpassed Nokia due to Android .