Some would like to see Nokia dead, while fans, the few they remained, are praying for the Finnish brand to live another year. There is also a rumor, about Microsoft, the old friend, actually purchasing Nokia and the last factory in Finland to be closed for sure, but there is one concrete fact until now: 10,000 jobs will be cut by the end of 2013.
Will Nokia Survive This Time?
Once a titan, now Nokia is in the hands of Microsoft, which took the risk to sign a partnership with the Finnish brand facing permanent financial troubles. Analysts have warned that Microsoft will be forced to rescue the business if chief executive Stephen Elop can't resurrect the group's smartphone business by the end of the year, although this situation isn't very comfortable for Bill Gates himself, but it's wiser to purchase the place where you've invested some money, than to lose everything. For the moment, Nokia announced 10,000 job cuts, following September 2010, when the company decided to give up 40,000 jobs.
A financial analysis can prove to be more complicated than it seems. Nokia's shares dropped 18% lately, so from this point of view we can understand why the brand renounced to a fifth of its handset workforce. Symbian platform didn't manage to face Android and iOS competition and brought another decrease in the overall profit. On the other hand, there were 40, 000 jobs out, now 10,000 planned to be dismissed, how possible will Nokia produce its phones? Or maybe the company doesn't want to produce anything at all and it was just saying it's the end of story?
With Nokia still unable to end Apple and Samsung's hegemony in the smartphone market, Elop admitted the date of Nokia's recovery was impossible to forecast, not to think about a clear return to profit. These seem to be faraway dreams for Nokia and unfortunately everybody is willing to confirm it. For instance, Francisco Jeronimo representing IDC, speaks about Stephen Elop as running out of time. Since Nokia Lumia is the major series including Windows Phone interface, Janardan Menon at broker Liberum Capital is positive about a Microsoft takeover.
The hard day for Nokia meant turning the lights at the Salo factory, its last in Finland, sending home more than 10, 000 persons. Research and development facilities in Germany and Canada are closed, Nokia is retreating from major markets, so that it can concentrate its firepower on America, China, the UK and larger European economies. Some would say it's a lost war, but Nokia feels the need to try before saying all was history. Currently, the Finnish company spends more than it actually generate as profit, so it has to take a decision as soon as possible: either accept to be purchased (besides Microsoft, maybe Facebook will be interested), either apply for some credits and try to resurrect the production.
Although the company plays all its cards on Windows Phone 8, the next version of the operating system, expected to be unveiled as test version next week and including in phones for Christmas, it's quite risky. If Windows Phone 8 isn't well received, Nokia won't have work to do and will be forced to fire more people or simply turn the lights.
11