This is certainly not Nokia’s finest hour. The once reigning smartphone maker of the world seems to be on the verge of extinction. Although the company seems to be faring quite well in the low budget division, they’re failing to compete with high end market segment. After their recent decision to partner up with Microsoft and take on their Windows Phone 7 smartphone OS, things have been on a bit of a downhill slide for the Finnish company.
The latest report from Fitch Ratings, a global firm that deals in rating companies based on credit opinions, various sets of research material gathered from the market and other such data, Nokia is not doing well at all. The fact is, Fitch Ratings has cast Nokia into ‘Junk Status’ thanks to its decreasing market share. That may seem a bit of a harsh term but it seems like that is what the current state of the company is. According to a Reuters report, the research firm even went as far as to say that the ‘outlook remained negative’ regarding Nokia’s stake in the market.
Not looking too good
The Finnish company has been on a downward spiral and their current range of Windows Phone 7 smartphones viz. the Lumia Series has met with mixed results. While packing in premium quality designs, that which Nokia is known for, the operating system still has a way to go before it reaches the level of its competition i.e. Android and iOS. The competition between the latter two systems is only getting tougher as Google and Apple are going at each other with everything but the kitchen sink.
Fitch decreased Nokia’s ratings to a BB+. The company held a BBB- rating prior to that and the research firm said that it couldn’t be downgraded any further.
In a separate statement from Nokia, the company said in its defense, that they would – continue to increase its focus on lowering the company's cost structure, improving cash flow and maintaining a strong financial position. Of course that remains to be seen as the axe has been falling hard in recent times, on Nokia employees. After a bad first quarter the Finnish company intends to further slash costs.
Things are not looking good for the handset maker and unless they can push their sales figures up, their legend could simply be lost in the current.