Nokia, the deposed king of mobile phones faces three big problems. First and above all, Nokia is loosing money. Lots of money. 2011 to 2012 the overall revenue dropped 29% to 9.7billion USD and is loosing money (18.5% of it’s revenue – read the earnings release here).
But why? Nokia’s Net Cash went down 24% in one year and if you back out Microsofts “platform support payments” it looks far worse!
Of course – Nokia completely overslept the smartphone. Focusing on dumbphones Nokia is now leading a field of business which is in a race to the bottom. Nokia’s last hope: its new Windows Phone “smart devices”. But the latest Lumia smartphones recieved, erm well, mixed reviews and is selling like stale beer.
Nokia bleeds cash, its dumbphone business in a race to the bottom, and its plunge into the Microsoft ecosystem isn’t off to a good start. What’s next for the company? Can it turn itself around, and how?