The Finnish mobile company, which recently lost its long-held position as the world's leading device maker to Samsung Corp. , has been struggling in the face of competition from the Android-based smartphone vendors, Apple Inc. (Nasdaq: AAPL) and a new wave of low-cost feature-phone players, reported a massive loss for the first three months of this year and is the subject of much speculation about its future. (See Euronews: Takeover Rumors Lift Nokia, Nokia Loses Its Mobile Crown and Nokia Loses More Than €1.57B.)
With the second quarter's performance looking dire, CEO Stephen Elop has decided to take drastic measures in order to survive the onslaught, though his tactics and the outlook for the next few quarters have sent investors running to the hills -- Nokia's share price is down 11 percent to €1.98 Thursday morning on the Helsinki stock exchange.
Here are the key details announced early Thursday.
CCS Insight analyst Ben Wood noted on Twitter that the resizing of the company is a "necessary evil" but that Nokia "can't keep cutting forever." He added that the purchase of Scalado is "astute… [a] great asset underlining Nokia is going big in imaging."
Nokia has been having a tough time of late.
- Analyst: Nokia Lumia 'Not a Company Saver'
- Euronews: Nokia Cash Burn Freaks Analysts
- Nokia Aims Low With New Devices
- Nokia Sues HTC, RIM, Viewsonic
- Nokia: How Low Will It Go?
- Euronews: Fitch Junks Nokia
- Nokia's Big Trouble in China
- OS Watch: Nokia Lowering Prices on Smartphones
- Don't Count Nokia Out Just Yet
— Ray Le Maistre, International Managing Editor, Light Reading