Analysis says Nokia's situation is worse than RIM's, market value has shrunk 90% in 5 years

The original poster: Hakurei Reimu Views: 214 Replies: 1 Posted in: 2012-05-10 00:24:17
News topic: NOKIA Nokia, May 8 Beijing time, IT reporter Zack? On Monday, Zack Whittaker published an article on ZDnet, stating that Nokia and RIM are currently in the same boat, with both companies' market share and market value declining sharply. The question is, which one will collapse first? Below is the summary of the article: Undoubtedly, BlackBerry manufacturer RIM is in deep trouble. Not only has it lost its direction, but it also lacks innovation. The company is pinning almost all its hopes on the soon-to-be-launched BlackBerry 10 operating system. Nevertheless, RIM remains the focus of attention, not Nokia. The discussions about Nokia are limited to the sales of Lumia phones, not the company itself, which is currently in turmoil.

If you compare the two companies, Nokia's performance over the past five years has been much worse than RIM's.
\In the past 12 months, RIM's stock price has dropped by more than 70%. In the past three years, RIM's market value has dropped from $78 billion to $6.3 billion.
In the past five years, Nokia's stock price has dropped by 90%, with its market value plunging from $151 billion to $11.8 billion over four years. In contrast, Microsoft's stock price has remained relatively stable, despite the global financial crisis from 2008 to 2010. Apple's performance has been even stronger, with its stock price increasing fourfold. RIM's decline is faster than Nokia's, but Nokia has lost more market value. A slower decline than RIM shows that Nokia has been striving to return to the top. Given Microsoft's partnership with Nokia in the smartphone market, Microsoft may eventually lend a helping hand to Nokia. Recently, there have been reports that Nokia CEO Stephen Elop may seek financial support from Microsoft. Some analysts believe that Microsoft funding Nokia billions of dollars is possible, but the likelihood of a full acquisition is low. Industry insider Mary Jo Foley, who has long followed Microsoft's developments, Jo? said that Microsoft will not acquire RIM or Nokia, but it is still possible to assist Nokia. In return for using the Windows Phone platform, Microsoft pays Nokia $1 billion annually. This demonstrates Microsoft's determination to enter the smartphone market, as Microsoft is unwilling to let Apple and Google dominate the market.Meanwhile, Samsung Electronics is also on the rise. Although the data from various research companies differ, overall, Samsung's global mobile phone sales have surpassed Nokia to become the world's number one.

However, Samsung's mobile business president, J.K. Shin, has stated that Samsung has no intention of acquiring RIM. There had been previous rumors that Samsung might be interested in RIM.

RIM may already be in a critical condition, but there is still a way out. If it cannot make a comeback relying on BlackBerry 10, RIM can be sold externally. The Canadian government has also stated that if a foreign company purchases it, the government will not stop it.

In addition, RIM also owns a large amount of infrastructure business, which is likely to become a potential acquisition target for Apple, as the latter is promoting the iMessage platform.

But Nokia only has one backup plan: to sell.

By Tencent Technology

*This post content comes from: cnBeat*
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