In a fast changing market, Nokia is losing ground very rapidly. The profit warning for the second quarter provided evidence that the next couple of years will prove very challenging, with the gross margin and market share trends of the last 4 quarters continuing, if not accelerating even more. The collaboration with Microsoft now appears to us unlikely to be successful, as Nokia’s brand is losing ground too fast and the window of opportunity for an alternative ecosystem is vanishing rapidly. Even modeling a scenario in which Nokia stabilizes next year leads us to believe that the stock will under-perform over the next twelve months.
Nokia's window is closing and analysts are underestimating how hard it will be to put the pig of WP into a low end poke of a Nokia phone. WSJ sees the same thing, and realizes the problem is Android (an OS designed for the low end) on cheap Asian phones.
(to plug my day job, I found these via Trove.com)
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