Nokia is reviving

Today the shares of Nokia are at $4,55 while in July 2012 they were at $1,55. Close to that catastrophic for the company days, I have made a prognosis that it is in not so bad situation, the fundaments are good and it is just having problems with not so good management and series of corporate mistakes. So today we see that this opinion was right. Nokia is going out of crisis and very soon it will become at least a player with middle influence on the market.

Historically Nokia had price levels of shares of $40, and even $60. So today's $4,55 are far away from the best days. But this level is nearly triple than $1,55, that means the one who has bought then, now has an enormous profit. I think there is potential for further growth and the price of $10 per share is not impossible.

Even now - amid the crisis, Nokia is still a great trademark and is still a super prestige name in mobile communications, along with Apple, Samsung and Android.

Some months ago Microsoft started the Windows 8 era, that inevitably will help Windows Phone devices. It is interesting that the Redmond giant started the new OS with an extremely aggressive promotion of cheap upgrades from Win 7 and Vista. So this accelerated implementation of Win 8 on the market will influence all the IT industry, and mobile communication branch of it will not stay away. So Nokia gains from the general Microsoft migration.

But in fact the main winning player is Microsoft itself, that used the Nokia problems to bind it with itself, so now the rise of the mobile company will be a rise for the Microsoft platforms.

May be Microsoft missed the chance to buy Nokia and control it when the company was very introubled and looked for money from everywhere. It even sold its Headquarters building in Espoo (Finland). Anyway even without ownership Microsoft is in close relations with Nokia.

It is interesting to point that the main merit of Nokia's revival has the Lumia product line, that is gaining ground in USA and China. Still being at 4% global market share it brings the business to profit and with some good strategy the future will be brighter.

So Nokia proves that it is not so bad...

Dobri
Jan 17th 2013

Powered by Bullraider.com

Interesting sites: UK web Hosting