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Posts: 648 | Thanked: 650 times | Joined on Oct 2011
#1873
Originally Posted by volt View Post
I think this is a followup question to the "How has the board not been replaced yet" question.

To your question I present three possible explanations:

- The board knew in advance that it was risky to switch to Windows Phone and that the point of return would be passed before the success of the strategy could be confirmed with Windows 8. Basically an all or nothing strategy from day one. This is compatible with "Plan B is to make Plan A work". This is irreversible.

- The board is just too darn stubborn or enchanted to admit failure. This is horrible but still common and can be reversible if addressed in time.

- The board don't want to kick the scapegoat CEO before he has cut down Nokia to the size they want to rebuild from. This would be cowardly and cynical but can still be a valid strategy for a huge corporation that finds itself with mainly outdated/ "wrong" resources.

I don't think no. 3 could be a main reason, but it can be a combination of all three.
You missed out the most likely reason - Nokia has been taken over by parasites and now act for the benefit of the parasites, not for itself.

As for why NYSE:NOK went up a few cents yesterday this could be speculators buying in the hope that Elop will be sacked soon. When it is clear that this isn't going to happen NOK will crash to $1.50.

Those betting Nokia's future on WP8 must realize that Nokia may run out of cash. Forget about WP8 phones this year, it will be 2013. Can Nokia survive another 2 Qs bleeding cash with almost no sales on top of retrenchment payments? Next year some debts will be due and Nokia can't borrow any more as its bonds are rated junk. It doesn't matter even if Nokia manages to push out WP8 phones next year, the smell of death will stop consumers buying.