Analyst at MKM Partners retains its
“Sell” rating on Nokia Corporation (ADR) (NYSE:NOK) with a price target of
$1.50. They made the computations before the 3rd quarter results
were revealed on October 18, emphasizing that due to the absence of Windows
Phone 8 (WP8), cash burn and feature phones will grab all the attention. Nokia
shares closed at $2.56 yesterday and a projected 52-week calculations state
that the range is from $1.63-$7.38.
Chances of Nokia’s disappointment
in the quarter are less, other than high cash burn. The bitter news is after
the unveiling of the WP8 Lumia phones and the inability to connect with the
audience. In-line revenues will be around €7.00 billion, slightly more than
consensus EBIT loss of €304 million.
MKM states that smartphones powered by WP7.5 and Symbian were bound to generate weak sales figures in the 3rd quarter. The new Asha models from Nokia improved the company’s position slightly in feature phone units and there was a sizeable amount of cash burn in the quarter. Nokia went up by 39% in the last few months as opposed to up 5% for the S&P500 due to the hype surrounding the Lumia launch (WP8 -powered). But the future of the Nokia’s WP8 phones does not seem to be too different from its WP7.5 line of phones.
The Devices and Services unit will face a cash burn of around €400 million with the overall burn amounting to €500 million in the 3rd quarter, according to the timing of restructuring payments. Even so, revenue is still flowing in from working capital, even if NSN revenues are low. MKM is not too optimistic about the increase in demand for Windows Phone operating system or Nokia hardware as the former will face immense difficulties in grabbing smartphone shares while the latter is already losing share within the Windows network.
Shares of NOK were up 4.69% to $2.68.
“the future of the Nokia’s WP8 phones does not seem to be too different from its WP7.5 line of phones. “
ReplyDeleteVery uneducated thought. I think you need to research the features of Nokia’s lumia 920.
Nokias Camera is second to none in low light conditions and the image stabilizing is outstanding.
Maps happen to be at least on par if not better then google maps. The ability to use destination maps offline. Nokia city view will make people feel familiar with any area they are in around the world
Highest resolution screen that does not blur while scrolling. To be able to wear gloves while scrolling the screen or use any object as a stylist including a banana. Wireless charging with very cool accessories. Nokia free radio also having windows phone 8 developed on it . Nokia has the best phone as well as the best platform in windows phone 8, WP8 isnt boring or the same GUI such as apples ios which hasn’t had any innovation or changes in 5 years other then siri. haha
As for windows 8 Microsoft is going to launch a 1.5-1.8b campaign for windows 8 compared to 500mil for windows 7..Microsoft hasn’t had a bigger investment in any previous launch. All windows platform including WP8 all run on the same Kernel and Dev will be able to port with ease.
this ^^
DeleteAnd all that is completely drowned out by the fact that Nokia made the incredibly business limiting decision of going exclusive with AT&T. They added the last nail in their coffin themselves... Which is why their marketing guy of so many years just up and decided to quit recently.....
DeleteAll Stockbrokers have iPhones in their pockets. That fact blurs their mind. Indeed the 920 is a big difference from the 900. The signs are good. The camera is way better as the cameras from other SmartPhones. As soon as the buzz comes out from People making good pictures with this Phone that are as good or better as point and shoot camara's People will want this Phone. The Business users are waiting for a Mobile computer that is secured. WP8 will offer that, together with an outstanding development environment. So the future is bright, but you have to look behind your horizon.
ReplyDelete