Nokia (NYSE:NOK) had its senior debt rating cut by Moody's (NYSE:MCO) from "A3" to "A2," along with a negative outlook on the company based on its declining position in mobile devices.
While the ratings are still investment grade, it will affect approximately $7.6 billion.
Moody's noted that Nokia inflexible smart phone operating system, slowness in introducing new models and more attractive innovation by competitors has brought the company to where it's at today.
They did say Nokia CEO Stephen Elop is starting to take steps to address the issues, but that will take time.
"In the short term, however, Moody's expects a significant degree of uncertainty about the financial impact on Nokia of the transition and about the level of eventual acceptance of the Windows Phone device offering," the ratings agency said.
Nokia Was trading at $8.95, dropping $0.07, or 0.78 percent, as of 11:32 AM EDT.
Showing posts with label Stephen Elop. Show all posts
Showing posts with label Stephen Elop. Show all posts
Thursday, April 7, 2011
Tuesday, March 22, 2011
Nokia (NOK) Says No to Symbian CDMA Phones
One of the major transitions that Nokia (NYSE:NOK) will make as it changes under new CEO Stephen Elop is an embrace of the wireless technology CDMA, which Verizon Wireless (NYSE:VZ) and Sprint (NYSE:S) use. For years, Nokia has only released devices that work on another — more widespread — wireless technology called GSM. In the U.S., that limited the introduction of Nokia phones to AT&T (NYSE:T) and T-Mobile USA. In a strategy to widen its addressable audience, however, Nokia will eventually issue CDMA handsets, Elop revealed at the February Mobile World Congress trade show.
Those Nokia CDMA handsets, though, are still off in the future. In an interview at the CTIA Wireless conference, Nokia USA Vice President and General Manager Mark Slater told Forbes that the Finnish company is unlikely to make any CDMA phones that run on Symbian, Nokia’s longtime mobile operating system. Instead, Nokia will wait until it has devices on Microsoft’s (NASDAQ:MSFT) Windows Phone platform. “Our go-forward smartphone platform for CDMA will be Windows,” said Slater.
That means no CDMA Nokia phones until 2012 or even later, potentially. Nokia has been understandably vague about the timing of its Windows Phone handsets, hinting that the first device may arrive before the end of the year. The bulk of Nokia Windows Phones will come later. In a recent regulatory filing, Nokia indicated that its transition to Windows Phone as its primary smartphone platform would take two years.
For now, Nokia’s focus in the U.S. remains on affordable, Symbian, GSM-based smartphones. On Sunday night, the day before the CTIA show officially kicked off, Nokia unveiled its latest entry, the T-Mobile Astound. The device is a slim touch-screen powered by the latest version of Symbian. It will go on sale exclusively at T-Mobile USA in April for $79.99.
Nokia was trading at $8.39, down $0.01, or 0.12 percent, as of 1:56 PM EDT.
Source
Those Nokia CDMA handsets, though, are still off in the future. In an interview at the CTIA Wireless conference, Nokia USA Vice President and General Manager Mark Slater told Forbes that the Finnish company is unlikely to make any CDMA phones that run on Symbian, Nokia’s longtime mobile operating system. Instead, Nokia will wait until it has devices on Microsoft’s (NASDAQ:MSFT) Windows Phone platform. “Our go-forward smartphone platform for CDMA will be Windows,” said Slater.
That means no CDMA Nokia phones until 2012 or even later, potentially. Nokia has been understandably vague about the timing of its Windows Phone handsets, hinting that the first device may arrive before the end of the year. The bulk of Nokia Windows Phones will come later. In a recent regulatory filing, Nokia indicated that its transition to Windows Phone as its primary smartphone platform would take two years.
For now, Nokia’s focus in the U.S. remains on affordable, Symbian, GSM-based smartphones. On Sunday night, the day before the CTIA show officially kicked off, Nokia unveiled its latest entry, the T-Mobile Astound. The device is a slim touch-screen powered by the latest version of Symbian. It will go on sale exclusively at T-Mobile USA in April for $79.99.
Nokia was trading at $8.39, down $0.01, or 0.12 percent, as of 1:56 PM EDT.
Source
Monday, March 21, 2011
Nokia (NOK) Working on Windows (MSFT) Nokia Phones Says Elop
Nokia (NYSE:NOK) Chief Executive Officer Stephen Elop said the mobile phone giant has already started to develop a smartphone which will use Microsoft's (NASDAQ:MSFT) Windows Phone 7 as a platform.
Elop also shot down the idea that Microsoft was interested in acquiring the company. "I'm not aware of a strategic interest that Microsoft would have in the rest of the business," Elop said.
"To the extent that a partnership has been formed around what they're really interested in, then what would an acquisition bring other than a good year of anti-trust investigation, huge turmoil, delays?"
Close to half of Nokia's mobile phone revenues come from more basic mobile phones, which are popular in emerging markets. The company has struggled to establish its brand in the United States, especially since Apple (NASDAQ:AAPL) launched its iPhone.
Source
Elop also shot down the idea that Microsoft was interested in acquiring the company. "I'm not aware of a strategic interest that Microsoft would have in the rest of the business," Elop said.
"To the extent that a partnership has been formed around what they're really interested in, then what would an acquisition bring other than a good year of anti-trust investigation, huge turmoil, delays?"
Close to half of Nokia's mobile phone revenues come from more basic mobile phones, which are popular in emerging markets. The company has struggled to establish its brand in the United States, especially since Apple (NASDAQ:AAPL) launched its iPhone.
Source
Friday, March 11, 2011
Nokia (NOK) Pays Elop Over $6 Million to Play in its Sandbox
Former Microsoft (NASDAQ:MSFT) executive and current Nokia (NYSE:NOK) CEO Stephen Elop, has been paid over $6 million in a signing bonus for joining the mobile phone company, according to documents filed Friday.
In the filing with the U.S. Securities and Exchange Commission, it showed Elop had been paid $3.17 million in October, and will be paid another $3 million in October 2011.
Elop was also paid by Nokia to reimburse fees he had to pay to Microsoft, as well as for legal expenses.
Nokia was trading at $8.47, up $0.07, or 0.77 percent, as of 12:56 PM EST.
In the filing with the U.S. Securities and Exchange Commission, it showed Elop had been paid $3.17 million in October, and will be paid another $3 million in October 2011.
Elop was also paid by Nokia to reimburse fees he had to pay to Microsoft, as well as for legal expenses.
Nokia was trading at $8.47, up $0.07, or 0.77 percent, as of 12:56 PM EST.
Monday, March 7, 2011
Nokia (NOK) Selling Qt Business to Digia
Nokia (NYSE:NOK) announced it'll be selling its Qt commercial licensing and services business to Digia PLC, a technology services company.
Qt technology allows software developers to write applications once, and then have them operate on multiple operating systems.
Nokia took control of QT technology when it acquired Norway-based Trolltec in 2008.
CEO Stephen Elop has supported Qt until it made the deal with Microsoft to use Windows Phone 7 as their platform for smartphones. Qt was targeting developers who wanted to make applications for Symbian.
While Nokia will continue to support Qt, it won't be offered on the smartphones they develop using Windows software.
Nokia was trading at $8.36, down $0.13, or 1.53 percnet, as of 11:40 AM EST.
Qt technology allows software developers to write applications once, and then have them operate on multiple operating systems.
Nokia took control of QT technology when it acquired Norway-based Trolltec in 2008.
CEO Stephen Elop has supported Qt until it made the deal with Microsoft to use Windows Phone 7 as their platform for smartphones. Qt was targeting developers who wanted to make applications for Symbian.
While Nokia will continue to support Qt, it won't be offered on the smartphones they develop using Windows software.
Nokia was trading at $8.36, down $0.13, or 1.53 percnet, as of 11:40 AM EST.
Thursday, February 17, 2011
Nokia (NOK) Chairman Says Nokia Windows (MSFT) Products Ready in 2012
While Nokia (NYSE:NOK) and Microsoft (NASDAQ:MSFT) are working feverishly to get a smartphone out using the Windows Phone 7 platform in time for the Christmas season, Nokia chairman Jorma Ollila said in an interview the company will definitely have smartphones out by 2012.
Talking with Finnish broadcaster YLE, Ollila said, "These Windows-based products (will be available) from 2012 onwards."
Ollila confirmed what Nokia CEO Stephen Elop has asserted, that there were a number of suitors Nokia could have chosen from.
Google (GOOG) and RIM (RIMM) have already said they had been talking with Nokia, with Google aggressively pursuing the partnership. RIM allegedly rejected doing a deal, although that hasn't been completely confirmed.
According to Ollila, there has been no pressure from shareholders to oust Elop, although a few malcontents have attempted to make some waves.
It's doubtful anything will be done with Elop until the end of 2012, or at least until half-way through the year. At that time there will be a better picture on how the deal is playing out.
Much will be determined on the dates the first products are released and how they fare. That'll take some time to work out.
Nokia closed Wednesday at $9.10, up $0.03, or 0.33 percent.
Talking with Finnish broadcaster YLE, Ollila said, "These Windows-based products (will be available) from 2012 onwards."
Ollila confirmed what Nokia CEO Stephen Elop has asserted, that there were a number of suitors Nokia could have chosen from.
Google (GOOG) and RIM (RIMM) have already said they had been talking with Nokia, with Google aggressively pursuing the partnership. RIM allegedly rejected doing a deal, although that hasn't been completely confirmed.
According to Ollila, there has been no pressure from shareholders to oust Elop, although a few malcontents have attempted to make some waves.
It's doubtful anything will be done with Elop until the end of 2012, or at least until half-way through the year. At that time there will be a better picture on how the deal is playing out.
Much will be determined on the dates the first products are released and how they fare. That'll take some time to work out.
Nokia closed Wednesday at $9.10, up $0.03, or 0.33 percent.
Tuesday, February 15, 2011
Nokia (NYSE:NOK) Sees Android (NASDAQ:GOOG) as Top Competitor
While acknowledging Apple (NASDAQ:AAPL) is at top mobile phone competitor, Nokia (NYSE:NOK) CEO Stephen Elop has a priority of taking on Google's (NASDAQ:GOOG) Android-based phones first.
His reasoning is the huge ecosystem Android has and it multiple price points.
The iPhone operates in the high-end of the mobile market, so isn't a multiple threat yet, although there's talk of releasing a smaller version of a phone soon.
On the low end of the scale, some Chinese companies are also making big gains and must be taken into account, although they'll eventually start pressuring the high-end as well, although probably more down the road.
Elop said on Monday the company will work hard to deliver a smartphone in 2011 based on the Window Phone 7 platform.
Microsoft (NASDAQ:MSFT) CEO Steve Ballmer said in 2012 there should be a variety smartphone offerings from Nokia with Window Phone 7.
Interestingly, Elop added even with the new partnership with Microsoft, they'll continue to work on their old Symbian platform, which he called "capable," but need to be upgraded to a more contemporary user interface. He said improvements there should come in a fairly short time.
His reasoning is the huge ecosystem Android has and it multiple price points.
The iPhone operates in the high-end of the mobile market, so isn't a multiple threat yet, although there's talk of releasing a smaller version of a phone soon.
On the low end of the scale, some Chinese companies are also making big gains and must be taken into account, although they'll eventually start pressuring the high-end as well, although probably more down the road.
Elop said on Monday the company will work hard to deliver a smartphone in 2011 based on the Window Phone 7 platform.
Microsoft (NASDAQ:MSFT) CEO Steve Ballmer said in 2012 there should be a variety smartphone offerings from Nokia with Window Phone 7.
Interestingly, Elop added even with the new partnership with Microsoft, they'll continue to work on their old Symbian platform, which he called "capable," but need to be upgraded to a more contemporary user interface. He said improvements there should come in a fairly short time.
Monday, February 14, 2011
Nokia (NYSE:NOK) Getting Billions for Using Microsoft's (NASDAQ:MSFT) Windows Phone 7
Reports have come out today that Nokia Corp. (NYSE:NOK) will get billions from Microsoft (NASDAQ:MSFT) in return for adopting Windows Phone 7 as the platform for company smartphones.
While Nokia is strong at this time in the lower-end smartphone market, they've lagged behind key competitors Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) in the higher end smartphone market. The deal with Microsoft is to change that situation.
For Microsoft, as usual with these types of deals, it will receive royalties from Nokia for the use of their software.
Nokia CEO Stephen Elop released the information on the billions Nokia would receive after shares of the company plunged after the expected announcement they were partnering with Microsoft.
Nokia was trading at $8.90, down $0.46, or 4.97 percent, as of 11:43 AM EST. Microsoft was trading at $27.18, falling $0.07, or 0.26 percent, as of 11:44 AM EST.
While Nokia is strong at this time in the lower-end smartphone market, they've lagged behind key competitors Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) in the higher end smartphone market. The deal with Microsoft is to change that situation.
For Microsoft, as usual with these types of deals, it will receive royalties from Nokia for the use of their software.
Nokia CEO Stephen Elop released the information on the billions Nokia would receive after shares of the company plunged after the expected announcement they were partnering with Microsoft.
Nokia was trading at $8.90, down $0.46, or 4.97 percent, as of 11:43 AM EST. Microsoft was trading at $27.18, falling $0.07, or 0.26 percent, as of 11:44 AM EST.
Thursday, February 10, 2011
Nokia (NYSE:NOK) Still Has a Lot Going for it
The internal memo from Nokia (NYSE:NOK) CEO Stephen Elop definitely gave a slap in the fact to the company, and was based some on reality, but probably not as dire as it was made to look by Elop to get the attention of his people in preparation for the changes he has in mind.
That's not to say the challenges aren't real, but if they face them and respond to them, Nokia should be able to continue to thrive over the long term.
Last year Nokia lost about 6 percent market share, not a small amount by any means, and something they obviously can't afford to do annually.
The good news is it appears they have the right man for the job leading the company, and that's the most positive piece that had to be in place to successfully go forward.
Some forget or don't know that Nokia is still the worldwide leader in mobile phone sales, and the battle between Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) is pushing down prices and margins, especially on the part of Apple, which probably play well into Nokia's hands.
Elop will lay out his strategy for the company on Friday, and expectations are he's going to embrace Windows Phone 7 as an operating system for the company.
Immediate response to that has been negative, but in the long run it could be a very positive decision and outcome, if that is what the company is going to do.
Whatever happens, things will be clearer on Friday, and Nokia should look a lot better as to their future than they were just a few days ago.
Nokia was trading at $11.02, down $0.71, or 6.10 percent, as of 12:39 PM EST.
That's not to say the challenges aren't real, but if they face them and respond to them, Nokia should be able to continue to thrive over the long term.
Last year Nokia lost about 6 percent market share, not a small amount by any means, and something they obviously can't afford to do annually.
The good news is it appears they have the right man for the job leading the company, and that's the most positive piece that had to be in place to successfully go forward.
Some forget or don't know that Nokia is still the worldwide leader in mobile phone sales, and the battle between Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) is pushing down prices and margins, especially on the part of Apple, which probably play well into Nokia's hands.
Elop will lay out his strategy for the company on Friday, and expectations are he's going to embrace Windows Phone 7 as an operating system for the company.
Immediate response to that has been negative, but in the long run it could be a very positive decision and outcome, if that is what the company is going to do.
Whatever happens, things will be clearer on Friday, and Nokia should look a lot better as to their future than they were just a few days ago.
Nokia was trading at $11.02, down $0.71, or 6.10 percent, as of 12:39 PM EST.
Nokia (NYSE:NOK) Finally Dropping MeeGo, Heading for Microsoft (NASDAQ:MSFT)?
While Nokia (NYSE:NOK) has an extremely weak market presence in the U.S., some forget they're still the leading smartphone company in the world, although its global market share has dropped from 39% in the fourth quarter of 2009 to 33.1% in the fourth quarter of 2010, according to IDC.
A growing number of unconfirmed but reliable reports suggest Nokia is dropping MeeGo, the latest coming out of Europe.
With the high probability of that being true, the conjecture at this time is Nokia will probably partner with Microsoft and their Windows Phone 7. That would empower Nokia to lower R&D costs and provide access to a promising platform.
Nokia CEO Stephen Elop used to be a senior executive at Microsoft, which is where some, but not all, the assumptions are being based on.
For Microsoft (NASDAQ:MSFT) this would be a major achievement in having immediate benefit from placing its software into the largest handset manufacturer in the world.
Microsoft has been desperate for a type of win that would give them a big boost, and if Nokia in fact is in play, it would huge for them.
Whatever Nokia's strategy ends up being, the market won't have to wait long to find out what it is, as CEO Stephen Elop said he'll reveal the changes he's about to make at the company on Friday.
Nokia closed Wednesday at $11.73, gaining $0.45, or 3.99 percent.
A growing number of unconfirmed but reliable reports suggest Nokia is dropping MeeGo, the latest coming out of Europe.
With the high probability of that being true, the conjecture at this time is Nokia will probably partner with Microsoft and their Windows Phone 7. That would empower Nokia to lower R&D costs and provide access to a promising platform.
Nokia CEO Stephen Elop used to be a senior executive at Microsoft, which is where some, but not all, the assumptions are being based on.
For Microsoft (NASDAQ:MSFT) this would be a major achievement in having immediate benefit from placing its software into the largest handset manufacturer in the world.
Microsoft has been desperate for a type of win that would give them a big boost, and if Nokia in fact is in play, it would huge for them.
Whatever Nokia's strategy ends up being, the market won't have to wait long to find out what it is, as CEO Stephen Elop said he'll reveal the changes he's about to make at the company on Friday.
Nokia closed Wednesday at $11.73, gaining $0.45, or 3.99 percent.
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