The Finnish company Nokia has not been developing very well lately. Phone sales are falling, stock prices are falling, and losses are in the hundreds of millions of euros. However, analysts do not consider these indicators to be negative, which is causing the stocks to rise periodically in Helsinki trading.
Steven Elop - Nokia CEO says the company has developed a new strategy, which began to be implemented last year, and showed positive results, but fierce competition in the cellular technology market soon changed from plus to minus, forcing Nokia to incur heavy losses. According to preliminary estimates, the situation in the second quarter of two thousand and twelve will not improve.
The fifty-three percent drop in share price after the sale of the last Symbian smartphone is now pushing the company to cut about twenty-seven thousand jobs to reduce internal costs and stay afloat.
Changes may also affect management. The main contender for the position of the new chairman of the board of directors is the founder of the Finnish antivirus company F-Secure, Risto Siilasmaa. He already takes a seat on the board of directors.
Cooperation with Microsoft, which is involved in the development of smartphones based on Windows Phone, promises good prospects. Also Nokia must rely on its partners. Experts in the analytical department expect smartphone sales to almost double in two thousand and thirteenth year. The main competitor using the Windows Phone OS is the Taiwanese company HTC, which, according to preliminary forecasts, will exceed Nokia's sales in two thousand and thirteen.
The main reasons for the company's losses, as mentioned above, are considered to be great competition in the dynamically developing market of mobile devices. Failure awaited Nokia after the release of the Lumia 900, which turned out to be poorly designed and sold not at the planned price of $ 99, but less, in some cases given for next to nothing with a two-year contract. The current chairman of the board of directors, Jormé Ollila, may also be a likely reason. If at a critical moment the leadership is changed, according to experts, this can cause both the rise of the company and its sharp fall.
