Sunday, November 27, 2011

Is Nokia's last chance?

The technology giant is not always built mobile phones. At its inception 146 years ago, in the Russian Empire, Finland as a wood pulp mill that was used for papermaking. Around this industrial settlement began to build a community and years later came a company dedicated to the production of rubber ended up spending part of Nokia, using its brand marketing that ended up shoes.

In the 20's, the company responsible for making finished with a cable company and unified the three administrations of the consortium in one direction. The full incorporation of the technology sector would decades later when the electronics division was created in 1960.

To address the market Nokia smart phone is something that is costing you a headache comparable to European leaders as they try to remedy the problems of sovereign debt. The Finnish brand plays a large part of his future that was the first fruit of their alliance with Microsoft, the 'smartphone' Lumia. The model '800 'of this-the other end came last November 24 to Spain, the Lumia '710' will arrive in January 2012 - and although no specific figures, is not expected to be able to sustain the buzz created after the pull of its release, despite the heavy investment in advertising, if finally happens what happened in France or the UK. The figures are lower than expected by Nokia and it generated a crash last week in the stock of technological biorhythm. Helsinki index saw its shares tumble to losing 8.8% and in New York, more than 6%.

The appeal of this company is far from that of years ago at the age 'preiPhone', when it was one of the great oligarchs of the mobile market. The investor interest is minimal and, therefore, prepared a request to stop trading on the Frankfurt Stock Exchange by the low demand for their shares, which could occur in early 2012.

In total, the shares of Nokia accumulated a fall of over 40% since the beginning of the course and all this comes from the manifest inability to deal with Apple and Samsung. Already, analysts suggest that the tandem with Microsoft will not be able to scratch a large market share. According to Pacific Crest Securities consulting, sales in the fourth quarter of both models, including the Christmas season, could reach half a million devices in all countries where they are sold, a figure below the targets that accompanied the great commitment of the brand.

The signals, both in terms of market and in terms of share price, they offer a good balance on the management of CEO Stephen Elop, signed last year and half. The Canadian was for many the panacea to the ills that the company lived and was expected to be able to drive a difficult conversion to a sector, smart phones, which later landed and proposals with less pull than their Apple and Android rivals.


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