Nokia Corporation (ADR)(NYSE:NOK)’s third quarter results on Thursday are likely to report a drastic drop in sales and more erosion in market share. Next week, Microsoft will launch its Windows Phone 8 software which Nokia has termed important for its smartphones.
The once number one phone maker has lost both in the top end and bottom end of the market, the former to Apple and Samsung and the latter to several Asian companies. Nokia which was the undisputed leader in the cell phone market for 14 years, had to give up its position in the first quarter, when Samsung sold 86 million units compared to Nokia’s 83 million.
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Although Nokia has replaced the Symbian software in its phones with Windows Phone, the transition period is expected to be difficult for the Finland based company.
An analyst in London expects Nokia to sell only 8 million smartphones against iPhone’s 27 million and Samsung’s 55 million.
On Tuesday, Nokia’s shares rose 9% in the past two trading sessions and now trading higher by a penny.
Sprint not planning to buy Clearwire
Sprint Nextel Corporation(NYSE:S) is not planning to completely take over Clearwire
Corporation(NASDAQ:CLWR), according to sources with knowledge of the matter. This report led to Sprint’s shares tanking 17 percent after having gained 100 percent in the past three days on speculation of a takeover. However, shares of CLWR are up 5% this morning.
Sprint Nextel had earlier entered into a deal with Softbank Corp. to buy 70 percent stake for $20.1 billion.
Both Softbank and Sprint can’t enter into further deals. While Softbank cannot do so because of bank stipulations, Sprint’s merger contract prevents it from signing new agreements.
According to Robert Chapman, founder of hedge fund Chapman Capital LLC , “Sprint doesn’t need to own Clearwire now, as they already paid $900 million to lease the spectrum they need for 2012 and 2013.” He went on to say that “Sprint may be better off buying 700 megahertz spectrum.”