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  • Nokia Credit Downgraded to 'Junk'


    As MMi reported earlier this week, Nokia is planning a massive rollback of its workforce. By the end of 2013, 10,000 current Nokia workers will find themselves out of a job.

    Nokia Chief Executive Stephen Elop called the forthcoming cuts essential. "These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," he said. "We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."

    A bigger immediate problem for Nokia than the planned cuts, however, is the struggling mobile phone maker's quarterly performance record of late. Not withstanding the company's plan to turn things around, Nokia says the next quarter may be even uglier than the last.

    So in response to Nokia's ongoing and seemingly endless troubles, on Friday, Moody's downgraded Nokia's credit to "junk." As of this writing, all three major credit ratings firms have done the same. "Nokia's plan delineates a scale of earnings pressure and cash consumption that is larger than we had previously assumed,” a rep for Moody’s told the press this week.

    So just how bad are things are Nokia? Their smartphone shipments have plummeted 60 percent year-over-year.

    Source: Bloomberg
    This article was originally published in forum thread: Nokia Credit Downgraded to 'Junk' started by Michael Essany View original post
    Comments 18 Comments
    1. goldsaint's Avatar
      goldsaint -
      Nokia 2012-2013 strategy : make 1990 phones with 50 mpx camera
    1. exNavy's Avatar
      exNavy -
      Maybe they could team with motorola and make an itunes phone with a 100 song limit and call it the rokr. Look what it did for motorola....
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by exNavy View Post
      Maybe they could team with motorola and make an itunes phone with a 100 song limit and call it the rokr. Look what it did for motorola....
      Yes, yes, the Rokr is what saved Moto
    1. bigliquid530's Avatar
      bigliquid530 -
      If I was Nokia I would take a roll of the dice and hire 2-3 of the JB Devs and make the ultimate phone
    1. bmwraw8482's Avatar
      bmwraw8482 -
      In the words of Nelson, "ha-ha"
    1. KraXik's Avatar
      KraXik -
      They struggle with smartphones but dumbphones are still a big seller. Not everyone wants to be able to do a million things on a phone. Just ask my Gran!

      Nokia may be reducing staff but they will be fine. What company hasn't had to reduce staff at some point?
    1. TheOrioles33's Avatar
      TheOrioles33 -
      Nokia should team up with Blackberry and go out of business.
    1. celeron's Avatar
      celeron -
      Quote Originally Posted by TheOrioles33 View Post
      Nokia should team up with Blackberry and go out of business.
      Lol agree. I remember when people were super cool because they had a blackberry
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by TheOrioles33 View Post
      Nokia should team up with Blackberry and go out of business.
      Lol! Yeah they should!

      Nokia just didn't jump into the game when they should have. Now tons of people are going to lose their job because of that. Nokia still makes good phones, but they haven't done anything to match iOS and Android. At this point I don't see that happening at all. Sure the Lumia is out.....but it's the Lumia......and it has Windows on it......
    1. iBwizzle's Avatar
      iBwizzle -
      Quote Originally Posted by TheOrioles33 View Post
      Nokia should team up with Blackberry and go out of business.
      You are absolutely right... I as a consumer enjoy having less choices!
    1. feidhlim1986's Avatar
      feidhlim1986 -
      Nokia failed to adapt their hardware or software quick enough to the rapidly changed "smartphone" industry. Their smartest move of late was partnering with Microsoft and Windows Phone 7 but I think they would have done exceedingly better had they adopted Android several years earlier.

      There used to be a time when almost everyone was walking around with a Nokia, and to be fair they made very good phones. But now if someone owns a smartphone chances are its going to be a Samsung smartphone or an iPhone.
      Samsung have flourished with Android and Nokia could have done the same. I dont know if it's too late for them to recover. They still have boat loads of patents that are in use in every phone, including iPhone.
    1. RICO_'s Avatar
      RICO_ -
      Odd. For a site that prides itself on keeping things "on topic" we sure do go out of our way to snoop in the doings of other cell phone companies...when the news is negative for them...in matters that aren't related to an "Apple-centric fan site".

      Just sayin.......
    1. feidhlim1986's Avatar
      feidhlim1986 -
      Quote Originally Posted by RICO_ View Post
      Odd. For a site that prides itself on keeping things "on topic" we sure do go out of our way to snoop in the doings of other cell phone companies...when the news is negative for them...in matters that aren't related to an "Apple-centric fan site".

      Just sayin.......
      Yeah it's been said before. Someone will argue that it's relevant because Nokia is a competitor to Apple, but never the less, only negative news about Apples competitors is ever "reported" here. Never the positive.
    1. Jahooba's Avatar
      Jahooba -
      Quote Originally Posted by RICO_ View Post
      Odd. For a site that prides itself on keeping things "on topic" we sure do go out of our way to snoop in the doings of other cell phone companies...when the news is negative for them...in matters that aren't related to an "Apple-centric fan site".

      Just sayin.......
      The catastrophic failings of a company in the same smartphone space as Apple is newsworthy, in part because Apple is causing it. If, for some reason, Apple's presence in this arena had a positive effect on another company (say, a carrier) then that is newsworthy as well, and MMi often reports it.
    1. RICO_'s Avatar
      RICO_ -
      Quote Originally Posted by Jahooba View Post
      The catastrophic failings of a company in the same smartphone space as Apple is newsworthy, in part because Apple is causing it.!
      While that may be obvious to the frequent member of this.....we don't need to receive updates as to every time Nokia goes deeper into the abyss. We are all WELL aware of the impact Apple has had on numerous other manufacturers both positive and negative.
    1. stanletmontena's Avatar
      stanletmontena -
      I don't understand what has happened to blackberry, they were the coolest before but now they are nothing
    1. bigboyz's Avatar
      bigboyz -
      Its really sad to see the heavy hitters fall. I say this cause it would have been too easy to stay in the game. You know, improve upon current technology instead of investing in flip phones. That would have been a good start haha! Not cool that 10,000 will lose jobs but that is the effect of not reacting to what the consumer wants and needs. Hopefully this is not there swan song and they bounce back competitively.
    1. Breezer23's Avatar
      Breezer23 -
      It isn't a good thing for consumers if all we have is Apple and Google devices.