Nokia SEC filing reveals all the risks ahead

Nokia SEC filing reveals all the risks ahead
Nokia’s latest filing with the US Securities and Exchange Commission (SEC) is a huge document with a lot of boring numbers, but there’s a couple of interesting things you can take from it. Nokia gives away all the risks coming with its transition to Windows Phone and gives some “forward-looking statements” for the future.

The biggest hurdle Nokia faces? 


Windows Phone is slow to catch up - Microsoft’s mobile platforms (including the dated Windows Mobile) have only been declining in the last couple of months and are struggling to get traction. Nokia, for once, has sold a not-too-impressive just over 1 million WP devices in the first three months of availability.

At the same time, Nokia publicly and a bit prematurely deemed its Symbian “a burning platform” back in February 2011. No wonder sales of Symbian smartphones declined quicker than the company expected. This is why the Finns now expect to sell "fewer Symbian devices than previously anticipated."

It seems that the focus will be mostly on lower-end devices, though. "Lower-priced smartphones with specifications that are different from Symbian’s traditional strengths" are another reason for the decline of Nokia’s own OS.

What we like and dislike about this report at the same time is its frankness. Nokia openly doubts parts of its Windows Phone adoption plan. In the report you can read lines like "consumers may be reluctant to provide personal data to us as a result of our partnership with Microsoft." Such an openness however at least shows that the company is realistic about its prospects, something that other companies like RIM for instance don't publicly admit.

Most recently, Standard & Poor’s downgraded Nokia’s credit score to BBB- with negative outlook. Still, it's clear that we're in the early days of Windows Phone, and with Windows Phone 8 the horizon could widen for both the platform and the company. Here's to hoping.

source: Nokia (PDF) via TheNextWeb

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10 Comments

1. shy2papa

Posts: 336; Member since: Jan 23, 2010

Hate to say I told you so, Nokia executive should add android and other OS To its line up don't put all your eggs into one basket.

2. Shubham412302

Posts: 579; Member since: Nov 09, 2011

if noka would have gone to android,it would have been rocking now..... but now it's too late for nokia to understand that future is in android not wp....

5. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

and then we would never had a chance to get another OS which is unique and 3rd good option for us unlike before people never had 3rd option and now we have it so give WP7 - 8 a chance to stand out and it is really better in some cases but it is still growing

3. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

It is normal that we'll see regular news about Nokia losses. Windows Phone race has just begun. Nokia sales and revenue will be observed by analysist, journalist and whoever related as this year is very crucial for Nokia. I won't be surprised to see more future news about Nokia losses. However by year Windows Phone don't get any traction and Nokia is not turning into even small profit, then we can assume that its over. So far we have till next year early quarter to wait and see. Yet, Nokia won't fail in the Asian market.

4. mikocok

Posts: 3; Member since: Mar 09, 2012

fire elop the trojan horse

6. allen83

Posts: 107; Member since: Mar 01, 2012

If they continue the meego os I think they will survive the game. Especially the meego os have a POSITIVE review in regards to functionality and overall use of the phone and os. Am i right?

10. mattypaul

Posts: 17; Member since: Mar 03, 2012

So does Windows Phone

7. moneyrockers

Posts: 4; Member since: Feb 26, 2012

Nokia should continue with Symbian and develop its future OS ( Carla & Donna ). Nokia will always rock in Asian market particularly in INDIA. They should also continue thier progress with MeeGo.Windows Phone should be kept as third option by Nokia.

8. iiiarena

Posts: 4; Member since: Mar 09, 2012

fired elop fired balmer fired joe

9. lubba

Posts: 1313; Member since: Jan 17, 2011

You know, Apple has the greatest support system. You'll never see or hear their "fanboys" talk shiit about them. That's why Apple is so successful! Here it is, bitchings nonstop,"Nokia should have done this, done that!" Nokia already made a choice. There is no turning back. If Nokia doesn't have great support system, they will go down and guess what, dont have to bitch anymore. There's only two choices, either STFU or support what Nokia and MS has to offer.

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