Nokia may be heading for "disastrous third quarter", more restructuring

Nokia may be heading for
Nokia has been a very busy company lately. It has been consistently pushing out new Windows Phone devices; it has a Windows RT tablet in the works; it just recently completed purchasing Siemens stake in Nokia Siemens Networks. Unfortunately, it may not be enough, because throughout it all the company's stock has been essentially even.

Acquisitions and products haven't been the only things in the works for Nokia CEO Stephen Elop. He has also been making cuts throughout the company, which has 40,000 fewer employees now than it did three years ago. The company has been doing better, but better isn't really good. In the first two quarters of this year, Nokia posted total losses of €500 million (~$660 million), which is an improvement over the €1.8 billion (~$2.375 billion) loss in the same time frame of 2012. 

Ultimately, analysts are expecting that there will be more cuts, and more restructuring in the future for Nokia. And, Pierre Ferragu, an analyst at Sanford C. Bernstein & Co., has even gone so far as to say that Nokia could be heading for a "disastrous third quarter". Given the growth of Windows Phone, which is held up mostly on Nokia handsets, that may seem a bit hyperbolic, but growth in the low-end market doesn't really do a huge amount for profits. 

source: WSJ

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57 Comments

1. sats.mine2k4

Posts: 208; Member since: Aug 10, 2012

Wp = disaster wht did they xpect...

4. TROLL

Posts: 4851; Member since: Apr 13, 2012

Soon will be joining BB® Migrate to Android! Or else head down deep south NokiaWp8®

6. papss unregistered

You mean like your account on this site?

57. takeja

Posts: 35; Member since: Aug 16, 2013

Yes, phone arena is the Censorship itself...

11. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Troll...troll...troll your boat. Gently down the stream. Merrily, merrily, merrily, merrily...flush it down the stream. Troll harder troll...your protests, or whatever you call it, is getting stale.

18. TROLL

Posts: 4851; Member since: Apr 13, 2012

That was funny Nathan®

22. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

You're pathetic.. Impossibly pathetic.

28. phil2n

Posts: 519; Member since: Apr 30, 2012

Troll...troll...troll your boat. cooking his A$$ on steam Narrowly Narrowly Narrowly...Narrowly minded Sp*rm..

39. gazmatic

Posts: 807; Member since: Sep 06, 2012

Microsoft just bought nokia... part of it anyway MS + Nokia 4 eva = win

41. Commentator

Posts: 3722; Member since: Aug 16, 2011

The important part: Devices & Services. Well, there goes any chances of an Android Nokia. Thanks for the comment, you should write for PA (or at least you should've in this particular instance, considering you reported it here faster than they did.)

10. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

More like carrier exclusives = disaster what did they expect?

24. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

This article completely holds no merit, is not valid, is purely speculative, and anyone who runs with this information is a idiot... Nokia will be fine as long as they stay on course.. To the ignorant what they are doing right now doesn't make sense... But, Nokia knows exactly what they are doing, and they are more concerned about making big profits later down the road with WP rather than being in the 3% android market share with Motorola in the present... Prove your intelligence and nevermind these type of crap articles... For Troll there is no hope, but there may be hope for some of the rest of you...

25. Commentator

Posts: 3722; Member since: Aug 16, 2011

How do you know that they know exactly what they are doing? Sure, they employ the best and brightest minds in the business... but then again, so do their competitors Samsung, Apple, and Google. Why is Nokia better than them at the moment? What you're saying also sounds like speculation, and at least the article provides some financials to back its speculation up.

29. Googler

Posts: 813; Member since: Jun 10, 2013

Sounds more like an Android hater who doesn't want Nokia to do both because they could successfully make Android handsets, furthering it's dominance.

32. Commentator

Posts: 3722; Member since: Aug 16, 2011

Well, "rekindling" its dominance maybe, Nokia hasn't been dominant for a while now. I think Nokia could put together an amazing Android device, but they'd have to market the heck out of it to compete with Samsung, and that would be a make-or-break risk that I'm not sure the execs at Nokia are willing to make. They've always had a reputation as a slow, methodical company, which is why another slow, methodical company (Microsoft) has been a perfect fit thus far. It also doesn't hurt that Microsoft absolutely needs Nokia in a way that Google doesn't at all.

34. AstronautJones

Posts: 305; Member since: Aug 01, 2012

They did have some people that knew what they were doing, but they probably laid them off.

26. akki20892

Posts: 3902; Member since: Feb 04, 2013

They better make android too, like my 1020. Damn it elop, u did stupidity in 2011 choosing wp. What a shrink decision was that. Nokia loosing money that Nokia and old glory Symbian made.

53. InspectorGadget80 unregistered

If Nokia made a Android phone might save the company

56. akki20892

Posts: 3902; Member since: Feb 04, 2013

absolutely true said dude........!!!

2. papss unregistered

We doing the usual cycle of doom and gloom Michael? Your blogging has been disastrous if anything has... How about that SS watch article? Good one

9. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

As painful as it is, it is actually true. Nokia can't get traction in the place it matters most, the wallets of people with disposable income. I have owned plenty of their phones (Lumia 920, 900, 710, 520), and honestly, Microsoft has screwed them by iterating too slowly to keep up with the market. Yes, WP doesn't NEED 1080p and quad cores, but it's hard to sell the lower specs to the average consumer when they see bigger, better screens, more choices, and buzzwords like "quad core" on other devices. Microsoft sat on their asses and didn't upgrade WP8 fast enough, let the app situation linger too long, and dissed Nokia when WP8 launched. They need to do their job and help Nokia, or risk them going the way of the Dodo.

50. lalalaman

Posts: 638; Member since: Aug 19, 2013

U r true when think of it....microsoft were slow with the pace of windows os.....bt they forgot wp is not a desktop os.....there pace is slowing Nokia awesome solid hardware to upgrade..... Mayb Q3 will b disastrous if no new devices r realeased and when 1020 is expensive and carrier exclusive...they will sell less this quarter

3. Commentator

Posts: 3722; Member since: Aug 16, 2011

Huh, I wasn't aware they were still losing money. That's a bit of a downer for a company that's shown to have some great ideas lately.

7. PapaSmurf

Posts: 10457; Member since: May 14, 2012

They're going against a duopoly in the mobile world. Two OEMs are the ones benefiting from everything while the rest are losing money.

5. SingDaFire

Posts: 74; Member since: Jun 21, 2013

I don't think so... Nokia has improved alot when compared to how it was 3 years ago.. The recent purchase of NSN will not drain but will generate more money since it's their's now.. They don't need to restructure it again as it has been bringing in profits since long ago.. So i don't see any need in doing that.. Ps. This article was published long.....ago but PA renewed it again lmao

8. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

It's not hyperbolic if the supply chain checks have shown what the majority of tech enthusiasts suspect, and that is that Nokia is mostly moving low-end, low-margin devices like the Lumia 520. The 920, 925, 928, and 1020 are all dead in the water. This is why the marketshare arguments are ludicrous. Marketshare is only a small portion of the equation. Profit margins move the needle and give companies the breathing room to be bold. Samsung and Apple both get to throw hundreds of millions at marketing, expand distribution and supply chains, and flat out dominate everyone else because they make the lion's share of mobile profit. Selling Lumia 520s and 620s is a great service for people who want cheap smartphones, but if that is all you are selling, you will find yourself in a deep hole. And yes, I have used a 520. Good phone for the money, but Nokia is lucky if they make $15 per handset.

12. DontHateOnS60

Posts: 872; Member since: Apr 20, 2009

Bought Nokia stock at 2.14/share earlier this year. Now it's sitting at 3.90/share. That's pretty good. It's not a hugely traded stock like Apple or Google is so don't expect the stock to all of a sudden end up at 15/share, and you can forget about seeing the kind of daily movement that those two stocks both have.

13. ddeath

Posts: 170; Member since: Apr 14, 2012

Seriously, what's wrong with Nokia? They can come out with both Android and Windows phones if they wanted to since they are a PHONE company, not a software one, since a lot of people are with the Android ecosystem and do not want to change. They have to relook at their strategy, which I'm afraid, isn't working well for them so far.

49. lalalaman

Posts: 638; Member since: Aug 19, 2013

Lol....then who will b there for wp8?.....it will be dead

52. ddeath

Posts: 170; Member since: Apr 14, 2012

Ah well.. With the latest news, won't see that happening anymore. :)

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