The once iconic Nokia Corporation (NYSE:NOK) is going from bad to worse and beyond these days, and it doesn’t look like the situation will change any time soon.
Traders have seen their investments evaporate, as year-to-date NOK is down more than 55%. There have been a lot of factors contributing to the downfall of Nokia.
The latest hit came from China where phone vendors said they didn’t want to sell domestic models running the Windows Phone, because they just struggle against the cheaper Android phones.[BANNER]
Previously, Nokia tried to deny the negative effect of the fact that users of current Lumia models won’t be able to upgrade to Windows Phone 8 and said this shouldn’t stop people from buying the line-up, but the fact of the matter is, in the world of smartphones, buying products that will be outdated in a so short a time just doesn’t make much sense.
This hasn’t been the only problem for the Finnish company this year. The company has had to close factories and lay off 14 thousand employees since the beginning of 2012. Additionally, the company revealed it had sold the Vertu luxury brand to a private equity group.
Declining revenues over the past few years brought an ugly bottom line featuring a net loss of $1.9 billion for 2011. With the dismal market performance of Nokia’s products, at the end of December the company had limited working capital. The problems plaguing Nokia just seem to pile up, and at this point, even the most hardened supporters are probably getting close to the point of desperation.
