The Chancer … The phone ain’t necessarily junk, but the company’s share price is
Finnish manufacturer Nokia may have slashed the cost of flagship Lumia 900 smartphone to just $49.99 (£32) in bid to stem losses, but its share price is still in freefall. From around $7 last November the stock has fallen to a mere $1.84 on Friday at close of play on Nasdaq.Nokia’s Lumia 900 Windows Phone is is sold through AT&T stores in the USA and the company has attempted to put a gloss on the price cut, describing it as part of a product’s lifecycle management.
But for some pundits it looks more like desperation.
One analyst, Pierre Ferragu of Bernstein Research, has cut Nokia’s cut price target to a mere $1.56, based on his estimates that in the last quarter from April to June this year Nokia sold a mere 1.1 million to 1.4 million Lumia phones, even though some 2.2 million were shipped.
Last month Nokia revealed it would be cutting 10,000 jobs, adding that its handset business would post a larger-than-expected quarterly loss.
Meanwhile major credit rating agencies have downgraded Nokia to ‘junk’ status.
Is it Fin for Nokia?