Who is the lifeline of nokia

By Janet Stewart,2015-02-02 09:07
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Who is the lifeline of nokia

Who is the lifeline of nokia?

    Top, in mobile Phone operating system for Microsoft Windows Phone still lags far behind Android and iOS, and nokia's flagship smartphone sales the company series cannot be compared with samsung and apple.The financial times website, said today the okefenokee of struggling for its latest smartphones 1020 high hopes for the company but some people think that it is the lifeline of is not mobile phone business, but formerly nokia Siemens of NSN (nokia solutions and network).The following is the article main content:

    A bet on the company, 1020

    Developed the latest nokia smartphone the company during the period of 1020, CEO Stephen elop gave the engineers under the challenge of an unusual: he was standing in a dark corner of the room, engineers photographed him on the other side, and see if I can make a can see he watches the hd photos of the time.They did it in the end.

    Elop the most subtle details to the attention of considerable significance.In the rule the global handset market after years of record sales of 468 million (2008), nokia in apple and samsung dominated the smartphone market has been struggling.The company sold 123 million phones in the first half of this year only, even is no longer in the top five smartphone makers.Since 2011, its total pre-tax loss of more than 4 billion euros.

    That means 41 million megapixel camera phone 1020 will has shouldered the company, it is the most important product since nokia into the era of smart phones.After the birth of the mobile phone, nokia finally with a to help its smartphones hit the market leading position."Once again we found our foundation."Nokia software program managing director Samuli Hanninen said.

    However, although the company has won the popularity of many 1020, but analysts worry, from the point of the sales situation of anecdotal, in promoting the product is of little help nokia get out of the general downturn in sales.

    Platform far behind

    Another fallen giants of the blackberry when the iPhone was born six years ago "in a nap," it said it would consider the overall sale recently.Blackberry is a warning for nokia, once its cooperation with Microsoft failed, it will also suffer the same fate.

    Take over 2010 nokia soon, elop announced to give up their own operating system, Symbian bet on Microsoft's Windows Phone platform.He thinks, the system will be apple's iOS and Google Android's third largest after the operating system.

    The problem is that Windows Phone also was far behind, according to Gartner, its global market share of only 3.3%, Android and iOS is close to 93.2%, and many analysts and investors calling for nokia find another way out, make a plan B.

    But Stephen elop remains very firmly."We focus on the Windows Phone platform.He surveyed said.

    He mentioned he was about two years later in 2011 nokia Windows Phone smartphones portfolio with comprehensive to judge appeal again."One must judge the problem is that nokia now than two years ago have more deployment of space? I'd say the answer is yes, because we have is on the right direction of the company mobile phone business."

    Nokia's business strategy is also facing other challenges.Under the impact of cheap Android phone, its feature phone sales fell sharply.NSN has its telecoms equipment business from years of losses of morphing into the strongest departments.This raises it can replace question to become the foundation of nokia mobile phones, especially in the context of the news from the sale of its remaining mobile phones business.

    Nokia recently for $1.7 billion from the hand of the partner of Siemens buyout NSN stake, a move that also triggered doubt how its cash position again.Nokia, a former executive says, "in 2015, nokia will be very different. In recent years people's focus on the smart phone business. But now elop will be in the scope of the company to make a lot of important decisions."

    Smart phone business problems

    But the company's smartphone business is still the key problem, it seems to some analysts, the business is worthless, and NSN were worth 5 billion euros to 8 billion euros.The company mobile phone sales in the growth, according to Gartner data, its second-quarter sales rose 33.3% to 7.4 million units, compared with samsung's still a far cry from 71.3 million, and apple's 31.9 million.

    This let nokia's important customers mobile operators are in a dilemma.Two years ago, the operator is eager to market to Android and iOS's third-largest mobile platforms.Operator, points out, if Windows Phone share growth cannot be obtained, they are not willing to give its support forever.A carrier executives, disappointed at the performance of the nokia.

    A multinational company CEO said, "if nokia once again become an important member of the industry, it would be nice. But in the

    smartphone market competition has become very difficult. Now, I don't think they will recover."

    Elop points out, many operators after showing kindness have "into cooperation commitment", such as AT&T.Nokia currently working with AT&T set market share goals, training employees, and share the marketing costs.

    A European telecoms industry executives said that the company's survey, in almost all important markets of the top three handset brands are apple, samsung and nokia."People have not been abandoned nokia brand."Nokia has won a good customer satisfaction score.But the problem is, it must let consumers have a desire to try nokia phones.Survey shows that only 5% of potential smartphone users want to buy a nokia mobile phone.

    Stick to Windows Phone

    In addition, the outside world on the nokia with Windows Phone platform and the issue of heavy note after the need for change is debated.Some analysts warn that if now and then jump to other platforms, may be too late.But Finnish Hector about bank analyst Hannu Rauhala believe that nokia should again on the basis of Windows Phone to choose an operating system, such as Firefox OS.There are also mobile operators think Android is a better choice for the company.

    Elop said nokia discussed to choose an operating system, but has decided not to do so.He also said that the company internal, no longer have a related discussion, no longer waste time on this issue.

    He pointed out that the absolute dominance of samsung in the Android market (80% of sales), means that nokia in the camp will be difficult to stand out from the crowd.

    His company is in the Windows Phone market dominance, others didn't mean to compete for the market, also must put more effort on Android against samsung.AdDuplex according to the report, nokia Windows Phone occupy 87% market share.

    The advantages and disadvantages for nokia.On the one hand, operators will focus on nokia and Microsoft, rather than a distraction to the HTC, samsung and other companies.But on the other hand, nokia is also subject to Microsoft's operating system, must rely on it to succeed.

    If only one company attaches great importance to the nokia Windows Phone, that the platform to get the momentum of

    development will be more difficult.Windows Phone application number with Android and iOS, even lack of popular applications like them.

    Plan B?

    In recent months the industry have the nokia one high-profile plan B - to sell mobile phone business.Microsoft is said to have to start negotiations with nokia.Elop responded, "no comment."

    Analysts believe that both sides of the transaction reasonable, after all, nokia has become Microsoft smartphone actual provider.Huawei mobile executives also said in June, the company will consider to buy nokia.

    Said a person close to nokia's banker, "nokia is pragmatic companies. I don't think they feel that they are safe. They do in improving the situation, but users are too low. They think, will be stripped out equipment business, they can rely on NSN business development."

    NSN is the future

    NSN has conducted a major restructuring, is now operating profit.It is widely believed that the nokia for 1.7 billion euros to buy Siemens NSN's 50% stake held by the transaction is a good deal.It is increasingly expect nokia will revolve around NSN to develop in the future.

    Bernstein research analyst Pierre Ferragu pointed out, "NSN is nokia's future. Their mobile business will stop losses, but the function of mobile phone business profitable, smartphone business is too small, and NSN is one of the world's second largest wireless provider."

    Elop said nokia hand the increase in the number of options for NSN."We could have had its IPO, it can be to our shareholders, and we can also choose other options. It also has become more strategic significance."

    The NSN deal makes the focus of the analyst to nokia's balance sheet again.After that money paid to Siemens, nokia's net cash will drop to 2.4 billion euros, far lower than in 2010 at the end of 7 billion euros.Some analysts speculated that even under the current rate of burning money, the company's cash will be sometime next year.

    Elop concern rejected, saying that companies have been able to cut investment they are needed.He felt that there is no need to cut investment, especially NSN has been able to bring cash.Nokia's chief financial officer, Kristian Pullola points out, excluding restructuring costs, the company's mobile phone business in the second quarter, close to the balance of payments.

    Although NSN well-run, mobile business is in the struggle, elop said he also will continue to invest heavily in mobile phone business.

    At the end of smartphones prosperity

    The financial times correspondent Daniel Thomas had said, in the mobile revolution help nokia to become one of the world's biggest technology company, before it ever seriously consider to sell the tiny mobile phone business.

    Nokia when it comes to the story of the dates back to the early 1990 s, points out that forever also cannot ignore the Finn.

    But time is very different.When trapped in that year, the mobile phone is about to enter in period of ten years.This time, nokia is in the

    midst of the smartphone boom end.Some people even said that the market may have gone completely.

    Two years later, the landing Windows Phone platform nokia to launch new products is slowly to recover lost ground.But analysts warned that the company hasn't made significant progress, perhaps will not be able to profit in the competitive market;As Asian manufacturers increasingly fierce, the market has been falling profits.

    "We have at the end of smartphones cycle."One telecoms executive said."It is now no longer has a very exciting products appeared."He also said that "market need the emergence of a new product."

    Apple, samsung and other companies seem to have to look beyond the smartphone market.Two companies allegedly watches are all developing intelligence, and have limited launched Google glasses will Google are unlikely to stop there.

    For these companies and nokia, looking for the next market is very important.In a fast-changing industry, consumer preferences change appear constantly, even the most sought-after brands are likely to be brought down - nokia has eaten the lesson more than once.

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