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Nokia roundup: India pullout threatened, Moody's downgrades debt

  • The Indian Express reports Nokia (NOK -0.5%) sent a letter to the Indian government in June in which it declared India has become the company's "least favorable market," and threatened to shift its manufacturing activities in the country to China.
  • Nokia has been embroiled in a $329M tax dispute with the Indian government (was a $383M dispute before the rupee plunged) related to its Chennai facility. The government offered to settle last month.
  • Meanwhile, Moody's has cut Nokia's debt rating to B1, 4 notches below investment-grade. Analyst Roberto Pozzi doesn't expect Nokia to "reach break-even on a cash flow basis before well into 2014, at the earliest." S&P cut Nokia's rating to B+ last month.
  • The FT takes a close look at NSN (now 100%-owned), arguing it acts as a "safety net" in light of Nokia's mobile phone woes. While Nokia's Devices & Services unit posted a €32M Q2 op. loss (non-IFRS), NSN delivered a €328M op. profit.
  • A banker close to Nokia: "Nokia is a very pragmatic company ... They think that if they want to pull the plug on devices they can go with NSN."
Comments (13)
  • wigit5
    , contributor
    Comments (4119) | Send Message
     
    Wow, if NOK pulls the plug on phones and devices windows phone will be dead...
    23 Aug 2013, 02:28 PM Reply Like
  • not me
    , contributor
    Comments (45) | Send Message
     
    That would be awesome, but unfortunately, WP won't die as long as there is some cash left at Microsoft.
    23 Aug 2013, 02:42 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8250) | Send Message
     
    They have a contract.
    23 Aug 2013, 03:15 PM Reply Like
  • dknight12
    , contributor
    Comments (8) | Send Message
     
    Why would that be awesome? Genuinely curious.
    23 Aug 2013, 05:14 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4335) | Send Message
     
    Good point dwd; how much, I wonder, will they have to pay MS, in order to shut down the phones? Personally, I can't see it happening, as the new Asha line will surely take off once it gains traction.
    24 Aug 2013, 06:53 AM Reply Like
  • Doug Dallam
    , contributor
    Comments (8250) | Send Message
     
    Moot subject. Nokia is not pulling out of the cell phone business. They just got started again.
    24 Aug 2013, 06:50 PM Reply Like
  • mxh070
    , contributor
    Comments (26) | Send Message
     
    Empty threat. Nokia would be hanging themselves if they pulled out.
    23 Aug 2013, 02:39 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4335) | Send Message
     
    A lot of the employees, anyway, mx! But since when have they counted, in such decisions?
    24 Aug 2013, 06:54 AM Reply Like
  • SexyJon
    , contributor
    Comments (35) | Send Message
     
    Read the article, it is about Nokia moving factory from India to China if they do not reach a tax settlement in India. That is positive for Nokia as it will save the company money and make more money for investors. Has nothing to do with phone sales or WP.
    23 Aug 2013, 03:12 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4335) | Send Message
     
    Not so sure about that, as they still will want to sell in India!
    24 Aug 2013, 06:55 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1609) | Send Message
     
    I cannot understand why NOK doesn't move to China anyway? Setting up shop in India was another mistake that changing will increase profits and cash flow.
    25 Aug 2013, 08:58 AM Reply Like
  • Omarsiddiqi
    , contributor
    Comments (25) | Send Message
     
    Nokia moving to china has nothing to do with wp. The mention of pulling the plug is a mere comment to instill confidence.

     

    again wp is the way to go.
    Nokia lumia 520 - hit in india/china, best seller in no contract phones on amazon.
    Nokia lumia - lumia 1020 (most amount of comments i've seen. gradually climbing the best seller on amazon att section)

     

    Sometimes its better to look at the bigger picture.
    23 Aug 2013, 03:33 PM Reply Like
  • HarryPothead
    , contributor
    Comments (259) | Send Message
     
    Please don't fall for these negative articles. The shorts are getting nervous and are trying to drive the price down so THEY can make money. C'mon, folks...
    27 Aug 2013, 10:53 AM Reply Like
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