While this is hard to hear it is nevertheless expected.
Nokia took the leadership position from Motorola in the 1990′s and has lead since. Until the last few years when the Apple iPhone and Google Android changed the marketplace. Now they are struggling for air.
Nokia has a strong brand, but it is not for smart phones. It is for regular handsets. The growth is in smart phones. The Nokia brand is weakening.
Nokia has tried several times over the last few years to re-boot, but they all failed so far.
Nokia recently partnered with Microsoft on the Lumia. This too is struggling.
Nokia is now forced to take these dramatic steps to scale down and try to survive going forward.
Nokia also warned loss in the second quarter would be worse than expected.
Expect Nokia shares to fall with no end in sight. Not until they create the next wave to ride, if they can do that.
Nokia has urgent problems. Very urgent and getting worse every day that passes.
This won’t be the last of the bad news coming from Nokia either.
They rode the wave up until the last few years. Since they they have crested and are now riding the wave down the back side.
Nokia has not successfully created the next growth wave so don’t expect things to get better until they do… if they do.
This is sad, but this is what happens to every company. It is the end of Nokia’s era. They rode wave up and now down. They must create the next successful wave or they will eventually disappear.
The next question is what’s next? Will Nokia create the next wave and recover? Will Nokia be acquired by another company wanting to break into wireless.
If so Facebook may be interested.
We’ll have to wait and see.
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These comments may be quoted in news stories. They are being sent by email list and on the web.
Please attribute to Jeff Kagan, Tech Industry Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Industry Analyst www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Other press releases from Jeff KAGAN Tech Industry Analyst, Columnist and Author
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Contact InformationJeff KAGAN
Title: Tech Industry Analyst ~ Columnist ~ Wireless Analyst ~ Telecom Industry Analyst
Jeff KAGAN Tech Industry Analyst, Columnist and Author
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