Editor’s Note: Related tickers: Nokia Corporation (ADR) (NYSE:NOK), Apple Inc. (NASDAQ:AAPL)
Oppenheimer lowered shares of Nokia Corporation (ADR) (NYSE:NOK) from a market perform rating to an underperform rating in a research report released on Monday morning, TheFlyOnTheWall.com reports. “We’re downgrading Nokia to Underperform from Perform reflecting accelerating smartphone competition, potential moderating NSN margins, and rising interest expenses. Mgm’t has done well to stabilize Nokia Corporation (ADR) (NYSE:NOK)’s overall business, but this has been more through effective cost cutting (mobile and NSN) than transformative smartphone breakthroughs. More cost cuts are possible, but incremental bottom-line gains will increasingly have to come from meaningful and sustainable smartphone momentum.
Nokia Unveils Low-Priced Lumia Targeting Emerging Markets (BusinessWeek)
Nokia Corporation (ADR) (NYSE:NOK), the mobile-device manufacturer striving to regain market share lost to Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. (005930), introduced a smartphone for its Lumia line targeted at developing economies. The Lumia 625 is cheaper than some previous models and comes with a 4.7-inch LCD screen and the ability to connect to the speedier fourth-generation wireless networks. The phone will cost 220 euros ($290) before mobile-operator subsidies and will go on sale in Asia, Africa and Latin America this quarter, Nokia Corporation (ADR) (NYSE:NOK) said today in a statement. Chief Executive Officer Stephen Elop is trying to accelerate Nokia’s turnaround by adding cheaper Lumias as demand for high-end handsets is slowing.
Nokia Canada looking for an “All-Access Correspondent,” free Lumia 920 up for grabs (MobileSyrup)
Nokia Corporation (ADR) (NYSE:NOK) and Live Nation Canada have come together once again this summer for what they a calling a ‘dream job.’ A contest that will see one lucky Canadian become the “Nokia All-Access Correspondent” and be tasked with the goal to “bring fans across Canada closer to their favourite artists and concert tours.” The actual gig will start mid-August and the successful candidate will be outfitted with a Nokia Lumia 920. Nokia Corporation (ADR) (NYSE:NOK) notes that the “All-Access Correspondent” will provide a peek behind the curtain and “experience unparalleled access first hand.” Sounds cool! As for the artists and bands that the chosen one will have access to, well, Live Nation Canada is still working on a final list and will announce a full plan closer to the end of the contest.
Moody’s issues credit warning on Nokia (LasvegasSun)
Moody’s Investors Services says Nokia Corporation (ADR) (NYSE:NOK)’s second quarter earnings are credit negative, citing a continued drop in sales. The ratings agency already has Nokia on review for downgrade, so Friday’s warning suggests a move is more likely. The agency expects any downgrade to be limited to one notch. It said it is particularly concerned about how quickly Nokia Corporation (ADR) (NYSE:NOK), which posted a 227 million euro loss for the quarter, is burning through cash. It noted Nokia Corporation (ADR) (NYSE:NOK)’s net cash would likely fall to 1 billion euros after the purchase of Siemens’ stake in Nokia Siemens Networks, a telecommunication systems venture. That would be below the 1.5 billion euros necessary to maintain the current Ba3 rating.
