Featured Articles

Hands on: Nvidia Shield Tablet with Android 5.0

Hands on: Nvidia Shield Tablet with Android 5.0

We broke the news of Nvidia's ambitious gaming tablet plans back in May and now the Shield tablet got a bit…

More...
Nokia N1 Android tablet ships in Q1 2015

Nokia N1 Android tablet ships in Q1 2015

Nokia has announced its first Android tablet and when we say Nokia, we don’t mean Microsoft. The Nokia N1 was designed…

More...
Marvell launches octa-core 64-bit PXA1936

Marvell launches octa-core 64-bit PXA1936

Marvell is better known for its storage controllers, but the company doesn’t want to give up on the smartphone and…

More...
TSMC 16nm FinFET Plus in risk production

TSMC 16nm FinFET Plus in risk production

TSMC’s next generation 16nm process has reached an important milestone – 16nm FinFET Plus (16FF+) is now in risk production.

More...
Nvidia GTX 970 SLI tested

Nvidia GTX 970 SLI tested

Nvidia recently released two new graphics cards based on its latest Maxwell GPU architecture, with exceptional performance-per-watt. The Geforce GTX 970…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Monday, 18 June 2012 10:19

Job cuts could speed up death of Nokia

Written by Nick Farrell



Last cuts kill off its innovation


Moves by the former rubber boot maker Nokia to slash a third of its workforce could speed up the outfit's death. Nokia's chief executive Stephen Elop announced he was cutting a third of the workforce. But amongst those he is letting go is the company's main source of innovating its way out of its current mess, Nokia's research and development team.

Some analysts said that getting rid of that many people will strain the company's cash position and achieve little in turning around what many see as its biggest problem. Its biggest problem is that it is suffering from slow sales of its new Windows-based handsets, mostly because these are waiting for Windows 8.

John Strand, founder of Danish industry consultancy Strand Consult told Reuters that Elop is cutting costs and hoping for a miracle, but it looks like Nokia is staying on death row. Meanwhile Nokia is losing share in the markets for cheaper, more basic phones. Lumia phones won some good reviews, but has had relatively little success among consumers.  Part of the problem is that they have come out just before Windows 8 is expected to do something interesting to the Mobile market.

Nokia needs a new, more revolutionary product to turn heads and it might get one when Windows 8 comes out.  However that is a huge gamble. Nokia does have some cudos in the mobile market.  As a brand people still think that it is reliable. At the moment though they have to admit that its software is behind Android and Apple. At the end of the March Nokia had 4.9 billion euros of net cash and already before factoring in charges from the latest round of restructuring some analysts had said the company could run out of cash next year.

It has a huge cash flow problem and with all the cuts it could spiral down to nothing very quickly. 

blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments