backtop


Print 15 comment(s) - last by InvertMe.. on Apr 25 at 9:42 AM

Nokia credit rating downgraded by a third firm

You certainly don't have to be an analyst to understand that Nokia is sailing through rough waters. The mobile phone company is still one of the largest phone shippers in the world, but devices it ships tend to be low-profit mainstream handsets rather than high-end and profitable smartphones.
 
Nokia has recently had some success with its Lumia 900, but that modest win isn't enough to turn around its fortunes.
 
This week, Fitch Ratings downgraded Nokia's credit rating to junk status. Fitch also said that the outlook for Nokia remained negative as market share continues to shrink. Fitch isn't the first to downgrade Nokia's credit rating either; the phone company has been downgraded by Standard & Poor's and Moody's as well. Nokia's ratings could be lowered even further if the company doesn't improve in Q2 2012 and beyond. 
 
"Given the potential headwinds facing the company, Fitch is currently not convinced that Nokia can attain this over the course of 18 months," it said in a statement.

 
Reuters reports that Nokia issued a statement showing its cash position at $6.4 billion as of the end of March. Apparently, that was an attempt to show investors and analysts that the company is sitting on a cash stockpile despite poor market share. 
 
"Nokia will continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position," Chief Financial Officer Timo Ihamuotila said.
 
Fitch believes that that cash reserve Nokia has right now could be completely depleted over the next 18 months thanks restructuring charges and negative cash flow. Nokia is taking a battering in the smartphone market because it has been unable to compete with high-end offerings from Apple and the hoards of Android smartphones available.
 
Nokia has hopes of turning around with this new smartphones such as the Lumia 900 on AT&T and other new devices coming this year.

Source: Reuters



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Convince dump, buy, then pump.
By Mitch101 on 4/24/2012 1:45:06 PM , Rating: 2
Number from Reported sources.

AT&T said it had activated 4.3 million iPhones in the quarter
http://www.dailytech.com/ATT+Posts+Strong+Earnings...

AT&T, the original carrier of Apple iPhone, did outsell Verizon Wireless in iPhones, posting 4.3 million activations vs. 3.2m activations

The Nokia Lumia 900 on AT&T is selling at a run rate of 1 million units for Q2 2012 - Another analyst put
http://www.intomobile.com/2012/04/24/nokia-lumia-9...

Thats One Nokia Windows Phone for every four iPhones sold. 20% or 25% depending on how you look at it and this is just the beginning. Like I said wait till Verizon.

Nokia just launched the white lumina 900.


RE: Convince dump, buy, then pump.
By fishman on 4/25/2012 8:03:15 AM , Rating: 2
Sold out at a price of free with 2 year contract. HP sold a ton of tablets when they slashed their price.


"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki