09/10/2015 05:00:56 Free Membership Login

Nokia Downgraded to Underperform - Analyst Blog

Date : 04/13/2012 @ 2:04PM
Source : Zacks
Stock : Alphabet Inc. (GOOGL)
Quote : 667.0  0.0 (0.00%) @ 4:00AM
Alphabet Inc. share price Chart

Nokia Downgraded to Underperform - Analyst Blog

Nokia Corp. (NOK) is currently in difficult straits. Recently, Nokia issued a revised financial guidance for the first half of 2012, which was significantly below its earlier guidance.

Nokia is in a transition phase for its legacy Symbian software-based mobile feature phones to Windows software-based smartphones and tablets. However, we remain very much skeptical regarding the success of the Nokia-Microsoft mobile venture.

Though Lumia smartphones are much improved offerings from Nokia, we are not very sure whether this device will be able to gain market share from Apple Inc. (AAPL) developed iPhone or Google Inc. (GOOG) developed Android based smartphones. Already, Nokia has suffered a serious software glitch for Lumia 900 device, its much hyped first 4G LTE enabled smartphone.

We believe the company will face margin pressure throughout 2012, mainly due to a highly competitive industry dynamics. We downgrade our recommendation on Nokia to Underperform.

Recently, Nokia suffered a major blow when its much hyped flagship Lumia 900 smartphone faces software glitch in the U.S. Lumia was Nokia’s first 4G LTE-enabled smartphone. The U.S. telecom giant AT&T Inc. (T) was it carrier partner.

Nokia said Lumia 900 could at times lose its high-speed data connection and that the company would effectively give away the device for a short period. We remain concerned regarding Nokia’s future business relationship with AT&T.

A firm carrier partnership is a precondition in the U.S. for the commercial success of any mobile phone. For smartphones, this is a necessary condition since these feature-rich phones are very costly for which carrier subsidy is required to offer a competitive price.

A major concern for Nokia is its apparent difficulties in understanding the importance of the carrier-manufacturer partnership in the U.S. Therefore, the company is being increasingly marginalized in the lucrative U.S. market.

APPLE INC (AAPL): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

Alphabet Inc. (NASDAQ:GOOGL)
Historical Stock Chart

1 Year : From Oct 2014 to Oct 2015

Click Here for more Alphabet Inc. Charts.

Alphabet Inc. (NASDAQ:GOOGL)
Intraday Stock Chart

Today : Friday 9 October 2015

Click Here for more Alphabet Inc. Charts.

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 151009 05:00