As you carry out online stock trading, you might come across a passing mention of the once popular Finnish mobile phone manufacturer Nokia.
Nokia Corporation ($NOK) has seen better days, as we all know. Once the manufacturer of some of the most popular mobile phones, the widespread arrival of the smartphone essentially killed any prospects it had of continuing its dominance. 2007 was when the company grew rapidly, with the top line growing 24.3% and the net income rising 67.6%. Sales of its mobile handsets were soaring globally and the company’s market share was very large indeed, especially in Europe and Asia. These financial results also appreciated the company’s stock.
Beginning of the Decline
In 2008 sales growth was pretty flat, as net income slumped 44.6%. There was increasing competition from smartphone manufacturers such as Apple and BlackBerry.
- When the Android platform began rising in popularity, Nokia’s outlook dimmed further.
- Things worsened in 2009, with sales dropping 19.4% and net income falling 77.7%.
- However, spending for research and development continued rising to keep up with the competition.
- Investor optimism began to decline and crashing valuations made matters worse. These pushed Nokia shares downward.
- More drastic share declines took place all the way till 2013 as earnings results were poor, outlook was weak, and increasing pressure was put in by the competition.
$NOK and Microsoft ($MSFT) announced an agreement for over $4 billion in Nokia’s divested mobile device business. This was just after Nokia had bought the stake remaining in the communications network equipment joint venture it had with Siemens AG. This turnaround was received well by investors. However, shares further slumped in early 2016. They declined further when results were weaker than expected after Alcatel-Lucent SA was acquired.
In 10 years, Nokia dropped 70%. Such high profile drops and declines are present in stock markets, which is why you should choose your stocks wisely. For online stock trading, you need advanced trading software to help you get a clear picture of the market in real time. TradeZero offers you that and much more. Give us a call at +1 954-944-3885, or email firstname.lastname@example.org.
The content provided here is solely for informational and educational purposes and does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by TradeZero in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Investors are advised not to rely on the information contained in this writing to make an informed investment or financial decision. TradeZero explicitly disclaims all liability for any action taken based on any information contained in this writing.