Flitch glitch for Nokia: la fin?
Reports have ratings agency Fitch again downgrading its view of the once preeminent but now seriously troubled mobile phone maker Nokia. Fitch had already indicated it would take a negative position on the Finnish vendor if it remained unconvinced that Nokia could stabilise its revenue decline and be capable of generating single-digit operating margins in its core Devices & Services division. This is just what has happened. Nokia’s lack lustre 2Q 2012 figures indicate that “the company is currently not near this position and Fitch is not convinced that this can be attained anytime soon.”
In widely reported statements, the ratings agency said that it “believes that the company does not have products in its current portfolio that can stem the recent losses.” While acknowledging that the launch of a Windows Phone 8 powered range is “crucial”, Fitch also concludes that “the degree of competition in the industry would suggest that it is going to be difficult to re-establish a significant presence in the smartphone market.”
Kendrick Struthers Watson