Friday, October 19, 2012

Nokia Corporation (NYSE:NOK) CEO Sounds Positive Even After Miserable Performance In Q3

Nokia Corporation (NYSE:NOK) has lost about $1.3 billion in its last quarter. It was the 6th consecutive quarterly loss of the company. It was made more dismal by the declaration that it sold just 6.3 million smartphones in the quarter, down from 16.8 million a year back. Among that, only 300,000 were sold in the important North American market, and 6.3 million unit total, which consisted of some Nokia’s Lumias.

It has been a tough quarter for Nokia. It has been difficult enough to shake the confidence of anyone who has bought Nokia’s retort story. CEO Stephen Elop, however, remains undaunted. He believes that Nokia’s fortunes are going to change and the change will be accelerated by the need of carriers for a third smartphone ecosystem, other than Apple’s iOS and Google’s Android.

Will NOK Hit $5 This Year? Find Out Here

Elop said in an earning call on Thursday that there is a dynamic that the company can see and hear. It is increasing concern among operators about the concentration of power that is landing with two particular ecosystems. He is expecting to see a new trend in among the operators in the West. Speaking of when such a trend will be visible in earnest, Elop said that 2013 seems to be an ideal time, starting to surface in Q4.

That may mean that with the launch of Nokia’s nest smartphone, Lumia 920 and others, the aforementioned trend will show up. So, if Elop is right, we may see Nokia regaining some traction in the future. If it does not, it may be the time to revert to that ‘burning platform’ memo.

Elop is open to the idea of encouraging Microsoft, HTC and Samsung to have their own devices in the market and to be making investments to help incite the ecosystem. He said that anyone else in the ecosystem will have to be some kind of competitor. 

1 comment:

  1. If they get off their behinds and release the 920 pricing to countries other than France, Germany and Italy then perhaps their next set of results will be better.

    I imagine they have lost about 10% of sales with their mishandling of the 920/820 product launch.


Privacy Policy | Legal Disclaimer