Nokia’s rating to be downgraded by Standard & Poor?

25th June, 2010 by adina
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Standard & Poor has dropped its outlook regarding Nokia’s credit rating to “negative” instead of “stable”, considering the expected poor results the Finnish company would have. S&P warned that the core phone business had to remake its profitability over the incoming six months to avoid its credit rating to be downgraded for the next twelve to eighteen months. The reason of this pessimistic evaluation is the weak competitive position of Nokia for smartphones.

This alert reflects the increasing concerns of the analysts that Nokia would run out of time and would not be able to strongly compete with newcomers like the iPhone and Android. The growth of Research in Motion’s BlackBerry seems to be leveling off, while Nokia’s share has declined or at the most has been flat in the past years. This was particularly more obvious since the iPhone launched in 2007 as well as in 2008, after the beginning of the economic crisis.

The best chances for an improvement of Nokia’s performance are not expected to appear until later this summer, when the shipment of the N8. Being the first device powered by Symbian ^3 and also Nokia’s first phone with multi-touch capabilities, the N8, however, arrives three years later than Apple’s device.


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