Wednesday, July 27, 2011

Nokia Debt Cut to Two Grades Above Junk by Moody’s

It still amazes me that today's leading companies think they can rest on their old ways or products without constant innovation....

"’s biggest maker of mobile phones, had its debt rating cut to two steps above junk by Moody’s Investors Service, which cited “a severe weakening” of the Finnish company’s market position.

This deterioration has been caused by a loss of competitiveness of Nokia’s Symbian-based smartphone portfolio and the transition of its operating systems to the Windows Phone platform,” Moody’s analyst Wolfgang Draack said in the statement, which also cited “increasing price pressure and gaps in the company’s mobile-phone portfolio that are now being filled.”
The company’s handset shipments declined 20 percent to 88.5 million in the second quarter, the lowest quarterly volume in five years, as it fixed inventory problems and struggled to roll out new models. 

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