Monday, June 27, 2011

Nokia Samsung boss dismisses bid rumors

Nokia CEO Stephen Elop dismissed as "baseless" rumors that the electronics giant Samsung's bid for the company in London on Thursday.


On the occasion of the Open Mobile Summit, Elop said that "deprived of all the rumors without foundation" and reiterated Nokia intends to create third smartphone ecosystem to compete with Apple's iPhone and Google Android mobile operating system dominating.


He said that Nokia's designers are design to be used with the so-called "Mango" version of new phones that use Microsoft Windows Mobile operating system, which he has predicted to come later this year. This is due some time in the autumn.


Earlier this week, began to circulate rumors that Samsung would be for the Finnish mobile company that still makes more mobile devices than any other offer, but has seen their stock pummeled after it warned at the end of May that it might make no profit on the mobile business in the quarter.


Previous buyout rumors suggest Microsoft would bid so far for Nokia, but the company denied this also.


Elop said that Nokia is continuing a huge fan base in many emerging markets such as Asia.


It was also evident on Thursday that Nokia's Chief Technology Officer, Rich Green, takes a leave of absence from the company. Officially, it's for personal reasons, but other reports put contradictory statements. The Wall Street Journal suggested it for medical reasons, but the Economic Times said Green had with Elop, who took over as chief executive in September 2010 on the abolition of the MeeGo platform did not agree.


But Richard Windsor, a marketing analyst from the brokers Nomura, Elop was the talk, told the Guardian that he thought the company faced at least four quarters of significant problems.


"In losing smartphones, any company that market share has gone to considerable problems," said Windsor. He thinks that Nokia should bring dwindling market share, its margins and profits under tremendous pressure, especially as to produce the Chinese mobile phone manufacturers cheaper versions of Android phones for less than $ 200.


"Nokia is strongest in markets where it has not yet asked by sub-$ 200 handset in question," he added. Nokia's smartphones, which it sold 24m in the first quarter, had an average selling price (ASP) of 147 € (£ 130). Unlike most smartphones have an ASP of approximately $ 300, while the iPhone from Apple has an ASP of $ 660


"The high-end Nokia is gone - they can not go back," Wilson said. "And it will not be able to get the price of its Windows Mobile devices to low enough to make a profit. The hardware requirements of Windows Mobile are quite strong [Microsoft is a 1 GHz processor, faster than any other platform], and so will never be able to get the price low enough. "

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