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Nokia aims for $1 billion to fight Apple, Samsung and bolster its financial position

Written by James Delahunty (Google+) @ 23 Oct 2012 8:44 User comments (2)

Nokia aims for $1 billion to fight Apple, Samsung and bolster its financial position Nokia seeks to raise cash to fight competition, and bolster struggling finances.
It will raise almost a billion dollars by issuing convertible bonds, which can be very lucrative to investors when they are converted into shares years after they are issued. The cash will help it to push back against Apple and Samsung, who are gobbling the smartphone market up to Nokia's detriment.

The Finnish handset giant is struggling to compete in the rapidly changing, and very lucrative market. It is burning through its net cash, which fell from euro;4.2 billion in June, to 3.6 billion in Septemmber. At the end of Q3 2012, Nokia recorded 3.8 billion in liabilities, and faces 1.75 billion in bonds and loans maturing in 2014. Over the past year, it has seen its credit rating cut to junk.

Still, analysts welcome Nokia's plan to raise new cash through convertible bonds, since it clears up a question mark over its short term debt liabilities.

Nokia's focus now has to be on breaking further into the market for smartphones, and is betting on new Lumia models to do just that. The Lumia 820 and Lumia 920 run Microsoft's new Windows Phone 8 operating system, and are due to arrive in stores in November. The company also recently unveiled its $199 Lumia 510, an update of the Lumia 610 handset with a larger screen - it does not run WP8.

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2 user comments

123.10.2012 15:23

Their solution to bad management and huge debt is to get more debt? Someone needs to tell them that this approach only works for governments and other monopolies. Lack of cash is not the reason they are suffering; they are achieving all their non-financial goals...people just don't want the s**t they are shoveling and having another billion dollars to waste on more bad devices isn't going to change that.



226.10.2012 11:22

Originally posted by KillerBug:
Their solution to bad management and huge debt is to get more debt? Someone needs to tell them that this approach only works for governments and other monopolies. Lack of cash is not the reason they are suffering; they are achieving all their non-financial goals...people just don't want the s**t they are shoveling and having another billion dollars to waste on more bad devices isn't going to change that.
Speak for yourself, their flag ship Nokia Lumina 920 windows 8 smart phone is better, than what apple or Samsung is offering at the moment, very innovative and not copying apple, like Samsung loves to do.

premodded playstation 2 w/magic 3.1 mod chip installed
premodded xbox w/duox2 modchip installed
1.5 modded PSP

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