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Nokia (NOK +5.5%) has shot higher in afternoon trading, apparently thanks to a Bloomberg report...

Nokia (NOK +5.5%) has shot higher in afternoon trading, apparently thanks to a Bloomberg report the company will soon announce a deal to sell a Lumia 920 variant to China Mobile (CHL) that will support the latter's TD-SCDMA 3G network. However, this is old news: China Mobile announced it would sell the phone, known as the Lumia 920T, back in October. The fact China Mobile still doesn't have an iPhone deal could give 920T sales a boost.
Comments (43)
  • alphaRAJU
    , contributor
    Comments (417) | Send Message
     
    This is getting exciting. Love competition. Go Nokia!
    4 Dec 2012, 02:24 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8208) | Send Message
     
    Nothing can stop Nokia now...

     

    ...except reality.

     

    Wake me when Lumia unit sales growth AND net revenue growth exceeds Android unit sales growth.

     

    Thanks!
    4 Dec 2012, 02:28 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    So... You bought Android stock? How's that working out for you?
    4 Dec 2012, 02:54 PM Reply Like
  • wigit5
    , contributor
    Comments (3974) | Send Message
     
    I think if memory serves me DVL is in the Apple camp? Either way I don't think Nokia can really lose here, the 920 is a well built phone with a solid OS. It may take a while but I think Nokia could actually come out and give Apple/android oem's a run for their money. As long as MSFT keeps Win 8 updated, and pushes more apps on the store.
    4 Dec 2012, 03:00 PM Reply Like
  • Rookie IRA Investor
    , contributor
    Comments (2537) | Send Message
     
    Lumia is a line of phones. Android is an operating system used in phones and tablet computers. (Just for your information.)
    4 Dec 2012, 03:36 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    Wouldn't worry too much about the apps.
    Android apps are simply Java & can be run on Windows, MacOS, Jolla Sailfish, RIMM's QNX or almost anything else you care to mention. Google for Dalvik, BlueStacks, "Myriad Alien Dalvik" to see what I mean.
    4 Dec 2012, 04:37 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    @DeepValueLover

     

    "Wake me when Lumia unit sales growth AND net revenue growth exceeds Android unit sales growth. "

     

    Nah, we just as soon let you sleep.
    4 Dec 2012, 05:27 PM Reply Like
  • Srixon302
    , contributor
    Comments (7) | Send Message
     
    Thanks, css1971! That comment made my day! ;) (or night to be exact, it is 2 pm here in freezing cold Sweden..)
    5 Dec 2012, 01:58 AM Reply Like
  • jtalpha75
    , contributor
    Comments (337) | Send Message
     
    dvl, not to late to sell your rotting apple and ride NOK to the moon
    5 Dec 2012, 02:10 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8208) | Send Message
     
    AAPL is a bargain since the company continues to mint money.

     

    Nokia is struggling mightily with poor management and no free cash flow generation beyond debt repayment so it is a Powerball Ticket at best.
    5 Dec 2012, 08:15 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8208) | Send Message
     
    I'm in the camp of good management.

     

    Nokia proves that superior engineering can't succeed at the retailer without good management and better marketing.
    5 Dec 2012, 08:16 AM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    Sometimes the fundamentals lie.
    Apple's fundamentals look great and the stock tumbles nearly 200 points.
    Nokia's fundamentals look terrible and the stock is up like 16% in two days...

     

    But I think we can appreciate how you stick to your guns DVL, Nokia is really a contrarian play and not for everyone.
    5 Dec 2012, 01:00 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8208) | Send Message
     
    Luke: I sleep soundly because my money is safe because I don't invest in unprofitable companies with terrible management and horrible marketing.
    5 Dec 2012, 02:57 PM Reply Like
  • Heinz Doofenshmirtz
    , contributor
    Comments (271) | Send Message
     
    Any other companies you hate?
    5 Dec 2012, 10:12 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8208) | Send Message
     
    Luke: We can agree on that. In fact you are probably one of the more reasonable Nokia supporters. If this is the beginning of a Nokia rise and Apple fall I won't be too hurt...competition breeds better products! ;)
    6 Dec 2012, 06:03 AM Reply Like
  • chris SA
    , contributor
    Comments (19) | Send Message
     
    DVL, people buy NOK because it has almost hit absolute bottom in Q3. In Q3 they were selling their outdated WP7 at less than cost, and Symbian sales almost touched 0.

     

    Going forward, WP8 phones won't sell 50 million in Q4 but have the potential to pick up momentum and grow from a very low base at exponential rates, similar to the beginning of Android.

     

    In contrast, Apple's growth will not be growing at such rates. There may even be a risk of negative growth because of its stale innovation and competition from Android and now WP8, which could drive margins of Apple products lower in the future.

     

    People see the risk/reward is in favor of NOK.
    7 Dec 2012, 05:02 AM Reply Like
  • M2345
    , contributor
    Comments (4) | Send Message
     
    I am a 67 year old man that still owns and operates a small real estate development and investment company. I am a value investor but enjoys limited risk such as this bet on Nokia. Schwab has its highest rating on Nokia.
    4 Dec 2012, 02:29 PM Reply Like
  • Financehulligan
    , contributor
    Comments (1079) | Send Message
     
    Sertinly not old news since Nokia has yet not confirmed this deal.

     

    Confirmation from Nokia means that the deal has reached beyond the point of no return, the deal is closed.

     

    It is certainly positive news of the larger kind, given that China Mobile is the world's largest operator.
    4 Dec 2012, 02:31 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    I'm mildly confused by this.

     

    Nokia's been selling phones to China Mobile for years. Why would the 920 be any different?
    4 Dec 2012, 02:48 PM Reply Like
  • wigit5
    , contributor
    Comments (3974) | Send Message
     
    First smartphone on the 3G network, their other phones are all feature phones, probably still on the old 2g networks (I think anyway). Read in an article here on SA so could be bad information...
    4 Dec 2012, 03:01 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    No, they've been selling Symbian smartphones (and N9) to China Mobile as well. The E7 and N8 had China Mobile versions (on TCDMA) and it goes back way further than that as well. The 920 is 4G BTW.

     

    One of the issues major handset producers have had in the past in China is the instant the devices hit the street they get copied. I mean in days, not months.

     

    The HTC 8X design copy of the 820 is a relatively polite example; at least it has the HTC logo plastered all over it and not the Nokia one. I wonder how Apple will react to nearly indistinguishable clones.
    4 Dec 2012, 04:21 PM Reply Like
  • wigit5
    , contributor
    Comments (3974) | Send Message
     
    My mistake I must have misunderstood both this blurb and the article I read not to long ago... Thanks for clearing it up.
    4 Dec 2012, 04:32 PM Reply Like
  • kmi
    , contributor
    Comments (3985) | Send Message
     
    "Nokia's been selling phones to China Mobile for years. Why would the 920 be any different?"

     

    Margins.

     

    Profit is significantly higher on smartphones versus featurephones and dumbphones.
    4 Dec 2012, 06:13 PM Reply Like
  • sunsealeo
    , contributor
    Comments (3) | Send Message
     
    1st TD-SCDMA PHONE From Nokia ..
    5 Dec 2012, 04:04 AM Reply Like
  • sunsealeo
    , contributor
    Comments (3) | Send Message
     
    but hight selling price is beyond of market's estimation. Considering its capacity (supply or strategy), it is responsible for Nokia, but not good for long term .
    Lumia 920 forecast is about 4Mpcs , Nokia is developing its extended model now.
    5 Dec 2012, 04:04 AM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    My understanding is that China mobile is running TD-LTE to expand their territories. Nokia supports CHL offering Lumia to compete with Apple in the smartphone market.
    http://bit.ly/VDAe1c
    5 Dec 2012, 12:39 PM Reply Like
  • stealthology
    , contributor
    Comments (308) | Send Message
     
    Jeez SA, stop spinning all these announcements as negative.
    4 Dec 2012, 02:32 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (758) | Send Message
     
    I know some Nokia fans see bias at every turn, but how is pointing out this is old news negative spin? It's simply a fact, unless one wants to quibble over the difference between a China Mobile announcement and a Nokia announcement.
    4 Dec 2012, 02:42 PM Reply Like
  • Rookie IRA Investor
    , contributor
    Comments (2537) | Send Message
     
    But surely the point is that "the handset, which comes in black, white, yellow and red, will go on sale in China before the end of this month, the person said." [Bloomberg].

     

    This means that the first burst of China sales will contribute to sales in the October-December quarter. I am not sure whether this news was two months old, but I think not.
    4 Dec 2012, 03:50 PM Reply Like
  • alphaRAJU
    , contributor
    Comments (417) | Send Message
     
    I hope Nokia made enough communist red Lumias.
    4 Dec 2012, 02:50 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    You think China is communist?
    4 Dec 2012, 04:24 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    Yes, China is communist

     

    "Xi Jinping is the leader of China’s ruling Communist Party and is expected to become the country’s president in 2013." http://nyti.ms/TGiH92

     

    http://nyti.ms/VkCwjj
    4 Dec 2012, 05:58 PM Reply Like
  • sunsealeo
    , contributor
    Comments (3) | Send Message
     
    blue as best , yellow , than red ..
    5 Dec 2012, 04:03 AM Reply Like
  • alphaRAJU
    , contributor
    Comments (417) | Send Message
     
    oh wait. There's yellow sickle and star in the Chinese flag. Let's send a million yellow Lumias too!
    4 Dec 2012, 02:58 PM Reply Like
  • eganst
    , contributor
    Comment (1) | Send Message
     
    I am a long time investor in Nokia and cant comment beyond that.
    4 Dec 2012, 04:52 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    The announcement is supposed (rumored) to happen Dec 5th.
    It is now about 7am Dec 5th in China.
    We could hear something any time now.
    4 Dec 2012, 06:01 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    wpcentral is saying Dec 6th for the launch party...

     

    "To be exact, Nokia is throwing a launch party, partnered with China Mobile, on December 6th in Guangzhou, while HTC's party (appears to be on its own) will happen the next day in Beijing." http://bit.ly/VkFXXj
    4 Dec 2012, 06:28 PM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    The party was over, it took place Dec 5, 13.00-14.30 China time. CEO Steven Elot was there as well.
    http://bit.ly/Vki6r7
    One more point: report says, target sales in China expected to be 6m phones; no supply issue as Lumia phones are made in Beijing factory.
    5 Dec 2012, 12:45 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    Good job brian! I was tracking this but didn't catch the announcement.
    Where did you get the bit about the Beijing factory?
    Page 8 wouldn't translate to English for me so I can't tell if it was there.
    5 Dec 2012, 01:11 PM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    see the last paragraph of following link:
    http://bit.ly/VDAe1c
    5 Dec 2012, 10:37 PM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    Got it, thanks brian.
    6 Dec 2012, 08:03 PM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    welcome Luke.
    fyi, it's interesting to see how Chinese reports on Dec7 their view after this incident:
    http://bit.ly/VspQa0
    It titles < China Mobile one word makes Apple loss "2x Nokia" >
    7 Dec 2012, 11:32 AM Reply Like
  • Mr. Knowitall
    , contributor
    Comments (7586) | Send Message
     
    Very interesting brian.

     

    It looks to me that China Mobile fully realizes how to fight back against Apple's extreme margins. Looks like China Mobile's "welcoming of Nokia" was orchestrated at least in part to antagonize Apple and her investors.

     

    I can't blame China Mobile for wanting to monetize sale of iPhones; I mean they can see how the carriers in the U.S. just get screwed by Apple.

     

    PS. Keep sending me these Chinese reports (in private messages if need be) And I'll keep re-posting here. Good stuff.
    7 Dec 2012, 02:38 PM Reply Like
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