You know it is strange when Nokia is doing something all start to talk about the company’s fail, but no one thinks it is a tactical step and Nokia CEO Stephen Elop is an ace of its job. Yes, I agree there was a time when Nokia was a leader in the mobile world, and no other company could compete with it. But there is nothing strange when the things change.
For this difficult situation Nokia has developed a new plan — to cooperate with Microsoft, and very soon we’ll see new Nokia smartphones running Windows Phone OS. So there is no reason to discuss why Nokia has closed its online stores in the UK, Spain and France.
The company explained that the online stores were closed because they had low sales, and those who remain faithful to Nokia and want to get its devices can buy them from the carriers. Generally, I never understood what the online stores are for, as the phones are offered at quite affordable prices via carriers, and there is no sense to buy them from online stores where they are more expensive. It’s more than comfortable in Europe, where mobile operators provide the phones for free (with a contract, of course) and why this news made such a buzz in the tech world — I can’t understand. The company saw their online stores don’t sell many phones and decided not to waste time and resources on them.
I have just one question — how many of your friends or relatives buy phones directly from manufacturers? If the answer is close to 0, then there is no reason to think Nokia is drowning. The company just optimizes its activity.



Deutsche Bank analyst Kai Korschelt said Nokia will get €420 million ($608 million) from Apple. This number has formed of a 1 percent royalty rate on all the iPhones sold until the first quarter of 2011. As we know the words come to 110 million units with an average price of $550. The payment will be transferred in four phases — €95 million ($137.6 million) per quarter. After this transfer Nokia will have no claims against Apple, and the ongoing licensing will be covered.
I definitely like such statements! And there is no need to think what the spokesperson meant or whether there was something under the line. Moreover, Stephen Elop said people are tired of seeing iOS- and Android-powered smartphones everywhere, and Nokia’s future Microsoft-based devices will be a good alternative for all those who wish something new.
The thing is that no matter how hard Nokia is working to solve its current problems, its financial indicators hint there are still black clouds conglomerated above the company. Some optimists will say cooperation with Microsoft will help Nokia regain its popularity, but its market cap has decreased to $24 billion, and probably even Stephen Elop doesn’t know what to do.
The ratings agency doesn’t expect Nokia to get out of the situation in the nearest future. The rating influences Nokia’s financial strategy and long-term bonds so that investors like pension funds will not be able to buy the debt.
Earlier, when people started to use IPv4, no one could think 4 billion addresses would be expired so soon. But if you are familiar with this problem, most likely you know the conversations about the replacement of IPv4 with IPv6 have been cycling over the net for many years. Now, when this replacement is necessary, Nokia has no reason to worry about, because Nokia has been working with IPv6 standardization and development since the birth of IPv6 in the 90s. Starting from 2004 Nokia brought these standards to its Symbian-based smartphones. As a result, now Nokia’s smartphones have really good support for 3G and GSM.
