01-24-2008, 08:11 PM
Wow--great results in Nokia's latest quarterly report. The market reacted accordingly with the stock up 14% after reporting and staying up over 10% as of the time of this posting.
Here is the comparison with another company--Apple--that must have done very badly, right? After all, look what happened to its share price!
Now, I'm sure many of you are ready to jump in and rationalize the discrepancy in market reaction by noting that Apple was conservative in its outlook for the current quarter. Hmm...here's what Nokia has to say about its prospects:
http://biz.yahoo.com/ap/080124/finland_nokia.html?.v=9
"The company said it expects the cell-phone market to grow some 10 percent globally in 2008, but warned that January through March would see a slight decline from the last quarter of 2007
"It also cautioned that the average selling price of Nokia devices -- a much-watched indicator by markets -- was down at 83 euros ($120) from 89 euros in the same period in 2006. It said that it expects "some decline" in prices in 2008...
"At a news conference, Kallasvuo apologized for the company's decision to close a mobile-phone factory in Bochum, Germany, but said it was necessary."
http://www.marketwatch.com/news/story/no...9BAD3DF%7D&siteid=yhoof
"But the vendor continued to struggle in North America, where the number of phones it shipped fell 13.6%.
"In the last six months Nokia has repeatedly said energizing its position in the U.S. will be a priority this year. But the results have been slow to come through...
"Nokia didn't change its industry outlook for 2008. It still expects mobile-device volume to grow 10%, to roughly 1.14 billion phones, but sees some decline in average selling prices.
"Earlier this month, Nokia announced plans to stop manufacturing phones in Germany and to move production to lower-cost countries such as Romania. The decision to close the German plant may result in as many as 2,300 job losses...
"As for prospects in the infrastructure market, Nokia said it continues to expect very slight growth in 2008, with Nokia Siemens set to grow faster than the industry."
AAPL is down another 3% from yesterday...
Here is the comparison with another company--Apple--that must have done very badly, right? After all, look what happened to its share price!
Now, I'm sure many of you are ready to jump in and rationalize the discrepancy in market reaction by noting that Apple was conservative in its outlook for the current quarter. Hmm...here's what Nokia has to say about its prospects:
http://biz.yahoo.com/ap/080124/finland_nokia.html?.v=9
"The company said it expects the cell-phone market to grow some 10 percent globally in 2008, but warned that January through March would see a slight decline from the last quarter of 2007
"It also cautioned that the average selling price of Nokia devices -- a much-watched indicator by markets -- was down at 83 euros ($120) from 89 euros in the same period in 2006. It said that it expects "some decline" in prices in 2008...
"At a news conference, Kallasvuo apologized for the company's decision to close a mobile-phone factory in Bochum, Germany, but said it was necessary."
http://www.marketwatch.com/news/story/no...9BAD3DF%7D&siteid=yhoof
"But the vendor continued to struggle in North America, where the number of phones it shipped fell 13.6%.
"In the last six months Nokia has repeatedly said energizing its position in the U.S. will be a priority this year. But the results have been slow to come through...
"Nokia didn't change its industry outlook for 2008. It still expects mobile-device volume to grow 10%, to roughly 1.14 billion phones, but sees some decline in average selling prices.
"Earlier this month, Nokia announced plans to stop manufacturing phones in Germany and to move production to lower-cost countries such as Romania. The decision to close the German plant may result in as many as 2,300 job losses...
"As for prospects in the infrastructure market, Nokia said it continues to expect very slight growth in 2008, with Nokia Siemens set to grow faster than the industry."
AAPL is down another 3% from yesterday...