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Is Apple's Pain Nokia's Gain?

Apple (NASDAQ: AAPL  ) ¬†experienced huge losses today, largely based on investor fears that a small decrease in sales and margins for Apple may be the turning point for the company. Does this leave a vacuum for some of the smaller smartphone players like Nokia (NYSE: NOK  ) to step into? In this video, Motley Fool tech and telecom analyst Eric Bleeker tells us how Nokia's nascent turnaround will affect Apple.

Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.

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  • Report this Comment On January 24, 2013, at 9:14 PM, marv08 wrote:

    "...fears that a small decrease in sales and margins for Apple may be the turning point for the company. Does this leave a vacuum for some of the smaller smartphone players like Nokia...?"

    Uh? A decrease in margins does not create a vacuum, people are either spending less (e.g. buy older models), or, as is typical for a new product launch, there is huge cost involved in getting a completely revised device out. A "decrease in sales" has not happened, a slower growth has happened; iPhone sales were up more than 20% year over year despite supply constraints for roughly 2/3 of the quarter.

    Nokia has seen most of its Lumia sales increasing in the prepaid sector in the UK and Italy with end-of-life models with WP7 clearing inventory for as little as $140 for an unlocked and contract-free Lumia. The ASP they reported yesterday made it very clear that what they are selling are mainly not 920s or other new WP8 devices (Nokia ASP for smart devices $248, Apple's ASP for iPhones $641.5).

  • Report this Comment On January 24, 2013, at 9:47 PM, TimKnows wrote:

    Apple is dead, they can't solve their own problems as the competition will be bringing the best in a smartphone next week. Apple can no longer compete in this sector with the worse OS experience out there. Can Apple fall to fourth place, just ask the shorts and the sellers today.

  • Report this Comment On January 24, 2013, at 10:11 PM, vv234 wrote:


    While I agree with you that no-one including Tim Cook wants to work under extreme pressures which could kill you, I do not think Tim can now "gain a lot of breathing".

    If anything, he should feel more pressure, not only due to the fact that he should be largely responsible for all the

    suppler constraints (poor planning in the first place as

    an operator guru) if that's indeed the main cause of revenue short fall, but also from his internal employees if the stocks keep depressed (employee churn).

    If history is any indication (esp from Apple), most great innovations came under great pressures. This is simply one of the human nature. I believe most investors (not short term traders) are expecting Apple to produce more

    innovative products, not just incremental improvements, sooner or face the fate of irrelevance soon.

  • Report this Comment On January 24, 2013, at 11:46 PM, crowbait51 wrote:

    Nokia's gain? You must be joking! Have a look at their smartphone numbers. The pre-earnings hype was blown away by the facts. Volume gain on a tiny base was modest and a function of reduced ASP. That's not a recipe for success now or in the future.

  • Report this Comment On January 25, 2013, at 8:56 AM, TimKnows wrote:

    InfoThatSucks - have you noticed that you haven't been right on Apple or RIMM for a year now? Being poor makes you miss important changes, doesn't it?

  • Report this Comment On January 25, 2013, at 9:53 AM, theflew wrote:

    crowbait51 - The part you're missing is Nokia made a profit. At this point they don't need to sell many more Lumia phones to make more of a profit. Let's say they sale enough to cover the 2.2 million Symbian devices they sold last quarter since their will not be many sold Q1. Doing that will raise their ASP since the Symbian devices had a lower ASP. It will increase WP market share and make them more profitable. It's taken Apple almost 6 years to get to where they are now in smartphones. Nokia is just a little over a year into their turn around.

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