Nokia Profit Vanishes, Share Price Rises (NOK, AAPL, SSNLF, MSFT)
Telephone handset maker Nokia Corp. (NYSE: NOK) posted a loss of -$1.4 billion early this morning as the company’s sales of smartphones has all but disappeared and operating margins have fallen to 3.4%. Compared with smartphone competitors like Apple Inc.…
Telephone handset maker Nokia Corp. (NYSE: NOK) posted a loss of -$1.4 billion early this morning as the company’s sales of smartphones has all but disappeared and operating margins have fallen to 3.4%. Compared with smartphone competitors like Apple Inc. (NASDAQ: AAPL), Samsung Electronics (OTC: SSNLF), and HTC Corp., the Finnish company appears to be on the road to extinction.
Nokia’s does not expect to make any profit this year, which the company calls a year of transition. The company’s abandonment of its venerable Symbian operating system in favor of the Windows Phone operating system from Microsoft Corp. (NASDAQ: MSFT) and the planned release of a Windows Phone-powered smartphone later this summer is the make-or-break moment for Nokia. Smartphones are where the money is, and Nokia absolutely must get a share of that market.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.