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Nokia shares tumble to a 13-year low

Posted: , by Victor H.

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Nokia shares tumble to a 13-year low
Is there something rotten in the state of Finland? With the passing of time it’s becoming more and more obvious that things have taken a turn for the worse over at Nokia. Worrisome investors continue selling shares in the world’s biggest phone maker Nokia and now after having stumbled 18% yesterday, shares of Espoo have slipped an additional 4% today to their lowest level in 13 years. As the company is going down, analysts start raising questions whether the handset maker will ever be able to recover to number one. Just yesterday, Nokia announced that it is abandoning its yearly forecast altogether amidst slow sales and second quarter results are expected to be "substantially below" the initial forecast.

The prospect of a Windows Phone handset ahead isn’t a big appeasement either:

"We would continue to avoid the stock as Symbian smartphone sales are falling off faster than expected and we are skeptical that new Windows Phone models will be able to replace lost profits," Gleacher & Co analyst Stephen Patel noted. In the meantime, Nokia has confirmed its expectations of a Windows Phone handset coming out in the last quarter of the year and the Nokia Connection event promises to bring some new products on June 21st.

Conspiracy theories about a staged decline of the company and planned decrease in the price of shares to intentionally devaluate the company have also spurred. Russian tech analyst Eldar Murtazin, among others, was initially skeptical about the deal and has suggested that Microsoft is in talks about acquiring the Finnish company. That seems all the more feasible in the recent light of events given the fact that the market value of Nokia has shrunk significantly opening a better opportunity for such an acquisition. In addition, Murtazin notes that the Finns are in the process of closing some of their European online stores. While it all sounds too much like pure speculation, we’d be keeping a close eye on who invests in the phone maker in the coming months, but in the meantime feel free to share your opinions about the dramatic decrease of value in Nokia.

source: Reuters

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posted on 01 Jun 2011, 05:52 4

1. srini (unregistered)


nokia will not be able to reach no 1 again, but with few great models they can still give tough competition to the top brands. android is getting bored. ios is expensive, nokia windows on mango could be the answer.

posted on 01 Jun 2011, 05:54

2. Shafeer (Posts: 79; Member since: 30 Dec 2010)


I really think Microsoft can make Nokia good again with their new software, they should just buy the company!

posted on 01 Jun 2011, 06:53 2

3. aries.phills (Posts: 132; Member since: 17 May 2011)


Well, sometimes, radical change comes at a great price, but that doesn't mean that the expacted result can't be achieved. I still believe that Nokia will still bounce back to no. 1 possition again. This is just the price to pay for failing to improve their smartphone OS qualities.
Just hope windows devices and meego device hits the market soon enough to quench the speed at which their customers are migrating to other platforms. Although, I have made up my mind to buy galaxy s II once it hits my area, I wouldn't mind picking one nokia meego or nokia windows phone as an extra.
Somehow, I still believe that a few nokia-android phones would have been a nice move.
Goodluck nokia.

posted on 01 Jun 2011, 07:59 1

4. Philippines (unregistered)


What nokia should do is to go back where they started and analyze their drawbacks. They were once no.1 coz. Now, they are goung down fast. My suggestion? LISTEN TO YOUR LOYAL COSTUMERS coz y will know what they want. 1million heads are better than 100,000 nokia employees!!!!!!!!!! Whatever!!!! Upgrade your OS!! Your phones are great: specs, design, usability. Especially the N, E, C, X series. UI ia very important for us all. Thats y android has become popular.. Symbian Existed way back before iOS and Android. Lesson? Nokia ddnt upgrade and updatw their UI and OS.. even Anna ia not out!!!!! how many more days and months you guys wanna waste? Give us the best UI and u will see results..

posted on 01 Jun 2011, 08:12

5. nick (unregistered)


Fuck idea of (microsoft to buy nokia)
the q2 results is from The nokia CEO MR.Elop.
Nokia change the ceo, set the anna for n8 and the other symbian 3 devices.
belle photos is good got with belle on q4 and go only with symbian
Windows phone 7 is SHIT.
If nokia is going with windows my n8 is the latest nokia phone.
we love the Anssi Vanjoki for the nokia ceo

posted on 01 Jun 2011, 09:16

7. AppleFUD (unregistered)


This is nothing more than Elop devaluing Nokia so MS can buy them cheap.

posted on 01 Jun 2011, 10:07

9. bluechrism (unregistered)


Nokia will bounce back, and be number one by sales and volume, though not sure their platforms will be number 1 for a while, be it windows phone or something else in the future (Not going to be Symbian any time soon). Ultimately, this is the price for 2 or 3 major things:
1. The way the Windows Phone announcement was done - Symbian was never dead, just not their primary smartphone platform any more and will be supported until 2016. This message was entirely lost and this hit their current device lineup, despite subsequent (feeble) attempts to change this.
2. Anna delays - nokia fans are exasperated with how long it's taking to get this update out.
3. It seems clear that Symbian does indeed have some technical issues and these hamper the ability to keep Symbian up with other platforms (including their own like Maemo which they foolishly dropped). This is a major reason for the switch to Windows Phone.
4. Advertising, though this has less significance in most markets as they advertise heavily everywhere else. In the US though, the Astound has been launched under T-Mobile. It's a good device, but I haven't seen anything about it on TV or in print media.

However, Q42011 and Q1 2012 will be an interesting time for nokia and customers will likely have a choice between top nokia devices on 3 platforms:
Maemo6/Harmattan (it won't be Meego, but be Meego compatible and probably be out Q3 2011, but it will certainly be a high spec device)
Symbian (dual core devices running symbian Bella which should feature major UI updates)
Windows Phone (2011 ones with stock mango, early 2012 with Mango plus extra Nokia goodies)
This should bring back customers to all 3 platforms, provided they get the message across that these devices will all have some sort of support and updates for at least 2 years after launch. If this is done successfully, Nokia will be in good shape.

And don't ever sell to MS. Make Windows phone devices - sure. There's much more opportunity for differentiation and direct co-operation on the platform there than with android (you thing Google would integrate Ovi Maps?) but I sincerely hope that Nokia does not sell to MS and I believe MS will do much better out of Windows Phone by allowing various device manufacturers to use the platform which will surely end if they buy and manufacture their own devices. Separately, both comapnies will do better than they would if Nokia was bought.

posted on 01 Jun 2011, 10:29

10. snowgator (Posts: 3187; Member since: 19 Jan 2011)


No one wants "supported" Symbian devices. Only the most dedicated Symbian OS fans were going to get the offerings coming out this year. The move to Windows was going to kill any sales for new Nokia devices with Symbian, and I am sure Elop and the big wigs new that at the time of the decision. (I read on "fiercewireless.com" that Samsungs BadaOS driven devices have recieved huge bumps in sales in Nokia dominated markets.) But Nokia did not think profits were sustainable with Symbian, and Windows was the choice. Let's give all the "experts" a rest until the Nokia branded Windows phones with Mango hit market. By the end of 2012, we will know if they shot themselves in the foot at Nokia.

posted on 01 Jun 2011, 11:59

11. Julian (unregistered)


To me Nokia was once a giant just like GM was to automotive, now look at how far both have fallen. I purchased a Nokia N8 back in Dec 2010 and since then have sent it back FIVE TIMES for repair/exchange! This is just not acceptable. I still have my N8 and also an Atrix and there is just no comparison. With everyone snapping up market share like crazy, and being extremely innovative with their product line, I just don't see Nokia bouncing back from this one....

posted on 01 Jun 2011, 19:17

13. hepresearch (unregistered)


I have sampled phones by Nokia, Sanyo, HTC, LG, Motorola, Samsung, and others. Nokia has always been my favorite, though... until this year. I have used a Nokia 6010, a Nokia 6103, a Nokia 9300, a Nokia 6085, a Nokia N75, and a Nokia E75. My mother liked my Nokia 9300 so much that she asked me to find one for her, and I did. She still uses it to this day. After I finished with my Nokia 6085, I gave it to my dad, and he still uses it as well. My Nokia 6010, now 8 years old, still works when I slip any SIM into it. That said... when Nokia developed S60 5th edition, I was unconvinced, and Symbian^3, though not as bad, was still a disappointment for me. When Nokia announced the end of Symbian back in February, and the move to Windows Phone, I was devastated, and decided my next phone would be an S40 phone... no more smartphones for me. Although I had interest in acquiring another Nokia phone, I held off because something just didn't feel right. Now, I know why I waited; I will not buy another Nokia after this disaster. I will not be surprised if Nokia ceases to exist before the year is out. The brand name may continue if they get bought out, but it will never be the same, and will never be a major player in the market ever again.

posted on 01 Jun 2011, 22:55

14. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)


My Nokia stock!!!!!!!!! nooooooooooooooooo!!!!!!!!!!!!!

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