Operators losing confidence in Nokia, says research firm


Carriers are questioning the viability of selling Nokia product,  fearing its “weak” portfolio and worsening financial position could result in it becoming bankrupt or sold by next year

International operators fear Nokia may go bankrupt or be sold off in 2013, amid concerns its future portfolio is not strong enough to change its slump in fortunes.

This is according a report from investment research firm OTR Global, who warns international carriers are losing confidence in Nokia’s ability to remain a viable competitor in the mobile market.

Within the document OTR quotes four unnamed executives from international operators that between them account for more than 54 million global handset sales per year.

They state they are increasingly concerned about Nokia’s worsening financial position, unimpressed by its latest handset, the Lumia 900 (pictured) and doubt the firm’s ability to compete with the likes of HTC.

One sources said it would be “no surprise” if the Finnish mobile maker were to announce bankruptcy sometime in 2013.

Another said the firm is likely to be purchased and the brand retained in some capacity.

Nokia posted a loss of more than £1 billion in the first quarter of 2012, and many in the industry are concerned it is running out of cash.

OTR’s sources said price-cuts had been the only effective way of lifting disappointing sales of Nokia’s first Windows Phone device, the Lumia 800, which was meant to kickstart the firm’s revival.

The sources are also unimpressed by what they have seen of the forthcoming Windows Phone 8 platform developed by Microsoft that Nokia is expected to adopt for new handsets, though the platform will not be available by the crucial Q4 period this year.