Time is a great teacher, but unfortunately it kills all its pupils - Hector Berlioz
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Nokia shares fall after it drops sales targets
ONETIME PHONE GIANT Nokia has seen its share price fall after revealing that it has dropped its device shipment targets.
Yesterday the firm said that it had lowered its expectations at its services and devices businesses and today the stock market lowered its expectations of its financial performance.
Although it had previously expected to bring in between €6.1bn and €6.6bn, it has cooled on the idea and said that any predictions it had made in the past were no longer valid.
Funny, that loss of confidence, especially when the firm has linked up with Microsoft in a deal that should excite consumers and the market, but frankly hasn't.
"Strategy transitions are difficult. We recognise the need to deliver great mobile products, and therefore we must accelerate the pace of our transition," said Stephen Elop, president and CEO of Nokia.
"Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011," he added.
Perhaps that will be enough time for Nokia to build a time machine and go back to before the Apple Iphone and Google Android OS were released to create a handset that people will be interested in buying. But perhaps it will not be.
Nokia has always had a vice-like grip on the consumer handset market, but has failed to grab hold of the smartphone market. Whether it changes that now might have more to do with the quality of the hardware and software that leaves its factories, as opposed to say, any strategic decisions than it might care to make.
Yesterday's announcement from Elop, a man used to delivering 'looks good, but sounds bad' news, was predictably greeted in less-than-favourable manner by the financial market, which was so assured by the comments that it promptly shaved a number of points off Nokia's share price.
Shares in the firm fell 18 per cent overnight as the market reacted, continuing its recent bad form in the eyes of the red braces and lunch is for wimps brigade. µ
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In the early 1990s, Nokia had an advertising deal with the rock superstar giants, The Leningrad Cowboys. Perhaps a new ad campaign will cause the share price to rise.
"but has failed to grab hold of the smartphone market."
As usual, Nokias poor performance in the US market (where the above statement is correct), is equated to Nokias global performance. The Inq never takes any notice of what numerous readers have pointed out, and I do not expect that they will do so now. And since apparently none of the journalists at the Inq can read financial reports or even analyst reports, it is unlikely that the quality of content is likely to improve.
As for the rest of the article ... Doh! What did the Manchurian Candidate (Elop) expect, having told the world plus dog that the largest shipping smartphone OS with 100s of millions in installed base was being canned, that he was firing everyone in R&D and jumping on the MS bandwagon? That was Phase I.
This is just phase II of the destruction of Nokia - lowering sales expectations = lowering market cap.
It is just a matter of time before MS buys Nokia and destroys it completely.
My initial timeline was 2 years, backdated to Elop's ascension. On track I would say.
Dweeb