You are here
Home >> Latest Posts >> POV: Why Nokia takeover rumors may be nothing more than “sentiment manipulation” tactics!!

POV: Why Nokia takeover rumors may be nothing more than “sentiment manipulation” tactics!!

[embedit snippet=”madsb”]

Seems, the season for Nokia takeover rumors is again on and you might have heard very similar rumors even before. Huawei talking about and then denying and Microsoft coming closer to inch a deal and then going back, we have heard all those in past. It is no surprise that whenever Nokia is about to deliver good results, we start hearing a lot of these talks.

imagesCAWQM6C1

Q2 may be the time when Nokia may be able to post really serious Lumia sales statistics. There are many evidences to support this.

  • Nokia themselves has said, they expect more than 27% growth in Lumia sales in Q2 over Q1, which give us more than 7 million Lumias sold.
  • Other evidences like strong growth in Lumia 520, 620 and 720 percentage in Q2 also indicates brisk sales. Read more,

http://www.nokiapoweruser.com/2013/06/11/adduplex-data-highlights-and-trends-rise-of-lumia-520-620-521-928-verizon-tops-us-lumia-920-strong-in-china/

http://www.nokiapoweruser.com/2013/06/11/6-5-million-7-4-million-wp-devices-may-have-been-sold-in-april-and-may/

  • Nokia Account as shown amazing growth of 65% over Q2, which may really be telling something,

http://www.nokiapoweruser.com/2013/06/19/mau-for-nokia-account-shows-65-growth-from-1st-of-april-to-15th-june/

Apart from these evidences, one must consider,

  • Nokia is not a rudderless company without a proper strategy in place and it has all upcoming product introductions and marketing strategy well-planned. EOS with 41 MP camera, Phablet, Dual-sim Lumias are well hinted and planned.
  • MS and Nokia are enjoying best of relationships and it is no-brainer to think they would like to continue in similar way, rather than going for a merger, which hardly yields any value in short to long run over the current situation.

So, looks like sentiment manipulation may be the name of game here, with manipulators expecting Nokia share to go up once Q2 results are out and they may be enticing other now to sell the shares so that they can buy them and encash later.

It is simple to understand actually that at a time when Nokia has introduced volume winners like Lumia 520, 620 and 720 and they are doing well, why sudden talks of takeover are in picture.

Just our 2 cents!!

[embedit snippet=”adversal5″]

Advertisements
Nayan
Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]
http://www.nokiapoweruser.com
  • ben

    The talk with Microsoft was about Nokia will release Android smartphone at 2014, my opinion. It will fit the plan of using thousands of apps from Android camp.

  • Geeks

    Adding additional numbers to the analysis. Nokia’s market cap of ~$14 billion does not reflect what Nokia is worth since that is almost equivalent to their cash position (including long term debt). It doesn’t say anything about their $40billion+ in annual sales. Nor does it account for 30K+ patents that bring in ~$1billion per year. It totally ignores that there is a business unit called HERE MAPs or NSN or the Devices division!!!

    Just for the sake of the argument let’s say a company is currently making a $1billion profit per year and will be making more than that in the future for sure (which is the case for Nokia’s patents portfolio) – on any stock exchange it the world that company will be trading at at least 15X that net profit.. i.e the market cap of that fictitious company would be $15billion!!!!

    That’s higher than the current Nokia’s market cap.. isn’t it?

    So, I don’t see why Nokia can put itself up for grab on the cheap when it’s actually worth more than $30billion. They’re no longer burning cash and the Lumias are invading the planet at the speed of light. If Nokia does not sell Lumia 520/521 in the millions per quarter, it’s just due to their supply planning because the products are HOT even in the US where they have always been absent.

    There rumors are purely Wall Stree manipulations. That’s all.

    • Kamal Mishra

      Good objective analysis. Q2 may shut some mounths again.

Top