Inventory is evil. If it ain't moving, then it's just waiting to be written down.
RBC Capital Markets analyst Mark Sue thinks struggling Finnish smartphone maker Nokia
Since these devices won't be upgradable to Microsoft
In Nokia's first-quarter earnings release, the company noted that its overall channel inventory had increased on a sequential basis, which, while somewhat expected because of holiday seasonality, was admittedly on the "high end of our normal 4 to 6 week channel inventory range." At the end of the quarter, it was carrying its total inventory at approximately $2.9 billion.
With Research In Motion
Sue also expressed concern over Nokia's cash burn rate and thinks its coffers are now down to around $4.9 billion, compared with approximately $5.9 billion last quarter. It's also a concern that Microsoft is likely looking to diversify its smartphone hardware partner base, making the love in this relationship rather asymmetrical as Nokia is betting it all on Windows Phone, save for some mysterious backup plan.
Nokia investors have plenty more pain coming.
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