Will Windows Phone 8 Save SINKING Nokia?
Nokia (NYSE:NOK) is planning to cut operational costs worldwide after warning of worse than expected losses, but insisted it is still committing to big investments in the high-growth region of China and the rest of Asia. “The company has made a decision to continue investing heavily in Asia in terms of product development,” Olivier Puech, Nokia’s Asia Pacific head of operations, told Dow Jones Newswires. “We will not compromise our commitment to China,” Puech added.
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Nokia has made plans to cut almost 10,000 jobs in its mobile handset division by the end of next year, as well as streamline operations worldwide after warning last week that its operating loss will be worse than previously expected. Formerly the world’s top seller of mobile phones, Nokia has fallen way behind in the smartphone market dominated by Apple’s (NASDAQ:AAPL) iPhones and Samsung’s Google (NASDAQ:GOOG) Android-powered devices.
Nokia is now relying on Microsoft’s (NASDAQ:MSFT) Windows Phone and the upcoming Windows 8 operating system to drive its next charge. But China is a tough market to crack, with intense competition from low-cost Android smartphones and Apple’s growing investments in the country. Puech said the company was working on developing an ecosystem of handset makers and application developers in the country. “We believe that there is room for a third ecosystem,” he said.
Shares of Nokia (NYSE:NOK) are down 48.13% this year. On Wednesday, Nokia ended the day lower 1.57% at $2.50 per share.