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Summary:

Finlanders are expecting widespread lay-offs at Nokia, one of the biggest employers in that country. Nokia is to Finland, what Wal-Mart is to USA. According to IP Inferno, “the company is bracing for widespread layoffs when the traditional July holiday season comes to an end. It […]

Finlanders are expecting widespread lay-offs at Nokia, one of the biggest employers in that country. Nokia is to Finland, what Wal-Mart is to USA. According to IP Inferno, “the company is bracing for widespread layoffs when the traditional July holiday season comes to an end. It is important to understand that despite its technology driven organization, at the top Nokia is run by people from the financial world. There will be a focus on margins and a healthy near-term business before there is a focus on long-term structural issues.”

  1. Nokia needs to clean house in two departments: CEO and whoever is heading up design. Just fire the design department, get some new phones out there and things will improve. Are the margins in the handset business declining? Yes, but the number of phones being produced is only going to increase. It’s going to become a commodity marketplace, but Dell seems to have done ok in that kind of an environment – they need to refocus on both design and supply chain, as well as their relationship with carriers, and they can at least stop the bleeding. Can they stop Motorola and Samsung (and LG and a host of other companies)? I have no idea – but they should be able to put up a fight.

    The rumor this week that they are going to sell their network business is pretty interesting (for about $30B) – and it could be that they will be able to refocus. As always, actions need to happen. On the last Nokia call, the CEO sounds much more aware of how screwed up they are – hopefully they make the right moves.

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  2. If Nokia decides to sell its network business, well one more reason that they are dumb company. handsets is great for topline growth, but does nothing for the bottom line, which is going to come under tremendous stress from cheaper alternatives coming out of Asia.

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  3. Tend to agree – it all depends how much growth they can see in that business facing other competition – they might, if they don’t think they can be competitive in that space, to take the $30b and run. But who knows – I agree with you that competition in the handset business is only going to get tougher.

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