I agree with Bolaji and Anna on the downgrade...it's not the most applicabe measure of how well or how badly the company is doing. It reflects analysts' and Wall St's sentiment about how they think the company is doing, but at the day this has to be weighed against a host of other figures.
Prabhakar - I agree, I think Nokia is playing a catch-up game, and given how the market and brand loyalty has already taken shape, it will be hard for them to muscle significant smartphone market share in mature markets. If I was calling the shots, I'd start looking at how Nokia can cost-effectively transition its global feature phone user base into smarthone users. Nokia phones are incredibly widespread in the developing world. If the Nokia can develop smartphones at the right price point for the emerging markets, they may be able to move away from fighting fires in the mature markets and secure a better competitive position elsewhere in the world.
Nothing's impossible if there is a good strategy in place and even better execution. It may be an uphill battle but they still have potential. They are just unfortunate that the brand has been out of sight & mind for so long.
"Nokia's stock was not downgraded.... However, the cost of raising money through the equity market may be higher."
Thanks for elaborating on that. Lower credit ratings may be bad for the borrowing costs, but Nokia says Moody's rating downgrade is a non-issue, because the company's net cash is actually higher than a year ago. Why hasn't Moody's taken that into account?
Nokia's stock was not downgraded. The downgrade applies to its bonds or debts all of which are publicly traded too. Analysts have in the past downgraded its stock but that is the least of the company's problems since it is not seeking to sell shares now. However, the cost of raising money through the equity market may be higher.
@HH, a negative stock downgrade of a company may not seem an end itself. However, may affect a company's marketable and financial standing for recovery. For Nokia is certainly a concern in the short term.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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