Industry:
Communication (Smartphones)
Company:
Nokia
Problem:
Financial problems
Nokia
Burning Cash
As a user of
Nokia myself, currently using Nokia C7, I found out that Nokia is constantly
facing financial problem to stay relevant to the ever-evolving market. With the
cost of Nokia's debt rising, the most bearish of analysts in a Reuter’s poll
said the company could even be at risk of default if it fails to slow the
burning of its cash. Over the past 5 quarters Nokia has eroded 2.1
billion euros and analyst are expecting Nokia to burn almost 2 million euros
for the next 3 quarters. For the Q1 of 2012, Nokia suffers from an operating
loss of $1.7 billion, with a net loss of $775 million. Originally they thought
that they might gain a little profit but things just don’t go their way. Not
surprising I would say… (Nokia Q1 2012 results pdf)
Reuter's())
Why is this happening??
In the
shadows of the emerging GIANTS like Samsung and Apple who are constantly
releasing fresh smartphones, Nokia seems to be suffering from the massive drop
in Symbian sales. Even with its new high-end Symbian phone Nokia Pureview 808,
Nokia barely able to compete with the GIANTS.
 |
| The New Nokia Lumia 920 |
 |
| Nokia Pureview 808 with 41 megapixel camera |
Although its
Windows Phone Lumia handsets have shown some
signs of promise, they are also in no way made up for its plunging number
of smartphone sales following its decision to drop its aging Symbian OS.
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