Wednesday, August 1, 2012

Nokia Corporation (NYSE:NOK) Shares Rose 44% In A Week, Is Anything Brewing? - NASDAQ:AAPL

Finnish phone maker Nokia Corporation (ADR)(NYSE:NOK), which once dislodged Motorola from its pre-eminent position at the top of the handset market and has itself been displaced by Apple Inc.(NASDAQ:AAPL) and Samsung in the smartphone segment, has seen its shares surge 44 percent in the week to July 28.

There is no ostensible reason for the rise in its shares, especially when rival Apple's shares have seen a gain of a mere 4 percent in the same period, amidst the buzz about the impending release of its new iPhone.

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What goes up must come down and the other way around. This truism is nowhere seen more clearly than in the stock markets and business fortune.

Steve Jobs founded Apple, rose to the top along with a rise in Apple's share price and then his stock fell to single digits. He lost his job at the company he founded and then after a hiatus returned to Apple and started all over gain taking his company back to even greater heights than when he had left it - even surpassing Exxon Mobil as the largest company in the U.S.

Stocks fall and rise; fortunes are made and lost as investors speculate on rumours and news. Nokia lost out because it stopped innovating and its products are seen as not very relevant to a new breed of consumers who wanted different things and features that its phones could not offer.

Microsoft, which is lumbering along in its advanced middle age
, is another company that has not done anything new in a long while and has preferred to stay safe with its still best-selling operating system.

Stephen Elop came from Microsoft to Nokia but what he did was co-opt the Windows operating system to Nokia phones, dumping Symbian, but did not dare to tread a bold new path that Apple was blazing through.

Has NOK Found The Bottom And The Stock Continues to Rally?

There's no doubt about it that Nokia has had a big hand in inventing the mobile handset market, and other companies like Apple have built up on the solid foundation that had already been laid.

Nokia does hold a lot of patents as do Motorola and Apple. In fact, most legal battles between tech companies these days centre around patent rights infringements and copyright violations such as the on-going trial between Apple and Samsung.

Steve Jobs took tips on how to build a phone from Motorola’s Ed Zander and took on all his best radio frequency engineers leaving Motorola with nothing. Nokia capitalised on this vacuum and rose but now it is struggling to maintain its place in the smartphone segment.

Its Nokia Pureview with the mindboggling 41- megapixel camera is a desperate attempt to offer something new to consumers who have one eye on Apple and the other on Samsung to see what their next big explosive thing is going to be.

Get Free Trend Analysis on NOK

Nokia is indeed pulling out all stops to hang on there - it sold more phones in the June quarter than before and has slashed the prices of some of its new phones.

Whatever the reason for the rise in shares, it was a splendid week for the investors of the phone maker which is fighting back.

After hitting a 15-year low of $1.63 last week, the stock has rebounded quite well and was up 11% to $2.41 on Tuesday. 


  1. So Apple can turn around a company after Microsoft gives them a pile of money, but Nokia cant.

  2. the fact Nokia gotten a large sum of money is far from the reason the stock is rising, investors are not stupid (mostly) and will not treat a simple payment as a change in the company.
    i.e this stock is rising dramatically cause of other reasons, some say the new Nokia phones coming soon, some say the company has taken real steps in order to secure it self and moreover did it in the right time, and last the speculations on a possible takeover Nokia and its massive patent bank...

    bottom line getting a pile of money from Microsoft is nice for Nokia and gave it some breathing space, but its from from enough to explain such a rise in the value

  3. My point wasn't that the money from Microsoft caused the latest increase in the stock price (that's old news, i just thought it was an interesting similarity). It's just that the article made it sound like Apple is the only company that can be turned around after almost going down the drain, and any other company shouldn't bother competing.


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