Nokia is at a loss and consumes about 300 million dollars monthly in cash reserves accumulated in 14 years of ruling the mobile market.

The company failed to adapt quickly enough to the suddenly won popularity of smartphones without keyboard, the is due to the iPhone, regardless of current market developments and preferences of each user in terms of price, hardware specifications and operating system.

On the expensive phone segment, Nokia has lost its relevance in recent years, but this year managed to propose persuasive models based on the Windows Phone operating system produced by Microsoft, well received by analysts and bloggers. The Finnish group, presented in early September, together with Microsoft, the new Lumia Windows Phone 8 models, which brings high hardware design, quality camera with optical image stabilization and a touch screen can be used with gloves. Lumia 920 and 820 phones will make their appearance on the market most likely in November, but the prices are still unknown.

Losses and massive investments needed to catch up companies such as Samsung Electronics and Apple will prevent Nokia to pay dividends this year, analysts expect, contacted by Bloomberg. “Most importantly for Nokia is, now, to reinvigorate sales and return as soon as possible to profit. Till then, it would be logical not to pay dividends and to preserve what little liquidity available,” commented analyst Mikael Anttila from SEB, Stockholm.

Avoiding dividends could draw away investors seeking efficiency rather than long term performance, emphasizing the decline of Nokia’s shares, being on the rise for the fifth consecutive year, during which they lost about 90% of market capitalization.

About Alex Tenea

Expert in the field of Technology. I am in touch with the latest tech news and I always want to try out gadgets before writing on them. I am always searching for hot stuff and I only write on the things I know it is worth writing about.

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