Nokia Corp. (NOK) is facing serious problems in the high-end feature-rich smartphone segment. Smartphones are expected to become the next-generation choice, taking over the market share from basic mobile handsets.
As of now, unfortunately, Nokia has failed to introduce any smartphone to compete with BlackBerry, iPhone or any Android-based handsets. Nokia’s inability in the high-margin lucrative smartphone market will put more pressure on its earnings going forward. Feature-rich software and services are the main characteristics of any smartphone, which Nokia seriously lacks.
There is no near-term visibility about the launch of the upgraded Symbian. Additionally, the company’s network infrastructure solutions wing is still facing economic headwinds. We downgrade our recommendation to Underperform due to the absence of any catalyst.Zacks Investment Research
