News topic: NOKIA Nokia
Beijing time on June 20, according to foreign media reports, investment company Zack issued a report today saying that in view of the current very low share price of Nokia, the company will raise the rating of Nokia stock to "neutral" (Neutral). Over the past year, Nokia's share price has shrunk by nearly 66%.
Zack said that at present, it is unlikely that Nokia's stock price will fall further. Nokia remains in deep trouble, with management recently predicting second-quarter results to be lower than analysts expected and deciding to lay off 10,000 workers.
Currently, Nokia is in the process of transforming from feature phones running Symbian to smartphones and tablets running Windows. Zack believes that the main reason for Nokia's increased losses is smartphones. The Lumia line of smartphones is a big improvement over Nokia's previous products, and Zack isn't entirely sure whether Lumia can cannibalize the market share of Apple's iPhone and Android smartphones. The continued loss of market share caused by the lack of popular mobile operating systems such as Android or iOS has affected Nokia's profitability.
In the first quarter of this year, Nokia's position as the world's largest mobile phone manufacturer was occupied by Samsung. This is the first time in the past 14 years. About a year ago, Nokia lost its position as the smartphone market leader. Zack is very skeptical about the cooperation between Nokia and Microsoft in the field of smartphones. The three major rating agencies - S&P, Moody's and Fitch have all downgraded Nokia's debt rating to junk level, with a negative outlook. Nokia has decided to lay off 10,000 employees by the end of 2013, with restructuring costs of US$1.26 billion, but the savings will be even higher. Nokia has decided to sell a majority stake in its luxury mobile phone business unit Vertu to private equity investment firm EQT.
*Source of this post: cnBeat*
