Is Nokia ‘Too Big to Fail’? | MIT Technology Review
“The competitive reality of the cellphone market in 2012 was ‘live by the smartphone; die by the smartphone,’” Wayne Lam, senior analyst for wireless communications at HIS, said in a statement. “Smartphones represent the fastest-growing segment of the cellphone market – and will account for nearly half of all wireless handset shipments for all of 2012.”
That’s bad news for Nokia. While the company owned 16 percent of the worldwide smartphone market in 2011, according to IHS, it was only able to nab 5 percent share this year. Samsung took the top spot with 28 percent market share.
That Nokia is on the decline isn’t news. But deciding what should happen to the company if it fails is something that hasn’t been discussed nearly enough. And judging by its financials, that’s a discussion now worth having.
By the end of the third quarter, Nokia watched its revenue slide to 7.2 billion euros ($9.5 billion), a staggering decline compared to the nearly 9 billion euros it generated during the same period last year. Meanwhile, Nokia lost 969 million euros during the quarter – a far cry from the 68 million euros it lost in the third quarter of 2011.
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