Nokia’s Turnaround Under Time Pressure
Smartphone designers are rapidly releasing new models into the market because these companies want to gain market share just like Apple and Samsung. In the past, there were more competitors. Nokia, a Finnish company, was once leading in sales of basic mobile phones. However, one of their newer models, Lumia, is unable to keep up with the pace of the market. It is unable to attract consumers to purchase this smartphone. In fact, Nokia’s basic mobile phones are more popular. Thorough restructuring of the company has allowed Nokia to cut costs. Unfortunately, their revenue continues to decrease in every quarter. Chief Executive Stephen Elop hopes to save the company by updating Lumia’s functions.
It appears that Nokia is currently unable to keep up with technological advancements. Although they were able to ship out 55.8 basic mobile phones in the beginning of this year, the company is incurring losses. Because of investors are bearish about Nokia’s performance, its stocks decreased to a five-month low. The CEO intends to invest more resources to further develop Lumia. If it is successful, it may be a driving force to help Nokia regain market share.
Written By: Melody Mark
Source: Rossi, Juhana, and Gustav Sandstrom. “Nokia’s Turnaround Under Time Pressure.” Wall Street Journal. Dow Jones & Company, Inc., 18 Apr. 2013. Web. 19 Apr. 2013.