Why Indian Stock Market can be Hazardous for Investing – Lack of Information,Regulation and Enforcement
May 6, 2010US Markets Drop more than 8% , Dow down more than 900 points ;Where is the PPT
May 7, 2010Nokia’s trajectory has been going downhill from the peak reached when Motorola nearly self destructed. Now it looks that Nokia is following the same path as the other old mobile handset makers like Siemens,Sony Ericsson,Motorola and others.Though it still commands an impressive 36% marketshare of the world mobile market,that has been steadily coming down.More importantly its share in the lucrative high end smartphone market is falling faster . It looks with the hypercompetition in the smartphone market , Nokia has an extremely low chance of regaining its lost profits and margins.It is concentrating on the other segments of the mobile market to defends its units where it is also getting hammered by competition from Samsung,LG in the middle segment and local players at the lowest segment.Can’t see Nokia being a Buy anytime in the future.The main problem in its current problems lies in its very unsuccessful R&D which despite its long history in the mobile market and huge amount of dollars has failed to compete against much smaller rivals like HTC.Nokia forms a classic cases study of a Technology Company which failed due to failure of its R&D though Marketing also played a Role.
Nokia Shareholders Lose Patience in Third Year Without Response to IPhone – Bloomberg
Nokia, based in Espoo, Finland, spent almost six times as much as Apple on R&D last year, yet has failed to develop a device with the same mass appeal as the multi-application iPhone. The company’s shares have tumbled about 20 percent in the two weeks since it reported first-quarter earnings that missed analysts’ estimates, wiping out 8.2 billion euros ($10.5 billion) in market value.
Now 34 billion euros, or $44 billion, the company’s market capitalization compares with Cupertino, California-based Apple’s $230 billion, and is a shadow of its 1999 peak of 203 billion euros, the highest of any European company.
Nokia came in 43rd in a brand-ranking study released last week by Millward Brown Optimor, tumbling 30 places in a year. It lost 58 percent of its brand value, the biggest plunge in the top 100 brands, according to the study.
In a push to defend market share, Nokia slashed prices and sold cheaper models, sacrificing profit as the average smartphone price fell 18 percent in the last nine months. Even with the price cuts, its share of the global handset market fell almost 2 percentage points in the first quarter to 36.6 percent, International Data Corp. said April 30.
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[…] Nokia’s faulty execution in the smartphone segment has put it in a position where I can only call it a minor player despite its leading marketshare in the overall mobile market.While other tech giants like Apple,Google,Microsoft and others are increasing their marketshare and presence in different segments of Technology, Nokia is fighting to retain its numero uno position in the hyper competitive mobile market.It has been losing brand value,marketshare and margins under the onslaught of the American tech behemoths.Nokia is tying up with Yahoo in the mobile software space with both companies sharing their respective strengths in Email and Location services. […]
[…] Nokia has been losing marketshare,brand appeal and pricing power in the mobile phone market since it reached its peak with Motorola self destructing.After that it has been a downhill story for the company as you can read in my earlier posts. Now it seems that the Company has already realized that it is a low probability event to win back its mobile phone marketshare . Instead its trying to extract patent revenue from the winners. Apple is The Company to beat in the Smartphone market with the iconic iPhone.Nokia is trying to instead extract money by suing its rivals since it can’t make too much money by building products through it patents.These patent battles are extremely complex with both companies having a huge number of patents to fight with.Usually leads to a settlement after years of litigation.Mostly lawyers get rich. […]
[…] }); }Nokia is fast losing Marketshare,Brand appeal and Pricing Power in the smartphone market.Despite a nearly 40% marketshare in the worldwide mobile […]
[…] and RIMM have been forced to play catchup in their own Technology segment to Apple and Google .Nokia has been losing marketshare,brand appeal and pricing power as Google and Apple capture the hearts and minds of the smartphone consumer.Apple has radically […]
[…] }); }Nokia is a company under siege from multiple forces.On the global stage,it is fasting losing brand value,marketshare and profits under competition from Technology Giants Google and Apple.It is also losing its Indian fortress where it used to once […]