Chips Suppliers of Nokia Heralded Nokia' Straits

choi

My comment:
(a) Nokia's quarterly result was foretold from those of its chip suppliers--both flaccid.
(b) There is no need to read either.

(1) Kevin J O'Brien, A Billion-Euro Loss for Nokia. New York Times, Jan 27, 2012.
http://www.nytimes.com/2012/01/2 ... ning-for-nokia.html
("But shares of Nokia rose sharply in Helsinki trading after the company reported that it had already sold more than a million Lumia phones, the first using the Windows operating system, since October. Nokia is currently selling two Windows models, the Lumia 800 in Europe and parts of Asia, and the Lumia 710 in the United States")

(2) Maija Palmer, Nokia Hit Amid Parts Suppiers' Sales Fears; Mobile & Telecoms; Shares fall after chipmakers' alert; Concerns over older Symbian phones. Financial Times, Jan 25, 2012.

Quote:

"ST Ericsson, which supplies wireless chips to Symbian and Meego operating system, reported losses of $841m for 2011 and warned of a 'significant sequential decline' in sales in the first quarter because of poor sales at Nokia, which accounts for around 30 per cent of the company's business. Symbian accounts for the majority of Nokia's smartphone sales. 'The revenues deom Nokia have collapsed and this is why revenues at ST Ericsson are not what we expected,' said Carlo Bozotti, chief executive of STMicroelectronics, which owns half of ST Ericsson.

"On Monday night [Jan 23], Texas Instruments, which supplies baseband chips for older Nokia phones warned that revenue in that business would fall to $75m inthe first quarter, from $279m inthe fourth quarter.

"Nokia is abandoning its Symbian operating system in favour of Microsoft's Windows Phone platform in its smartphones * * * Nokia is expected to sell around 1m-2m of its phones, which use chips from Qualcomm rather than ST Ericsson and TI, in the fourth quarter. However, Window-based smartphones represent a small faction of Nokia's phone sales.