Thread: Let's talk Nokia stock!
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SamGan is offline SamGan
2012-07-21 , 01:42
Posts: 648 | Thanked: 650 times | Joined on Oct 2011
#1965
Originally Posted by cheve View Post
What is the current "burn-rate" for Nokia? I read somewhere that it is about 1B per Q, so by the time this thing is launched(requiring ramping up of production, marketing and etc), Nokia may end up with less than 1B in the bank.
Nokia cash depleted by €1 billion in Q2 to €4.1 billion in Q2. If this is the burn rate when they shipped 4 million Lumia and mitigated the loss with sales of Vertu it will be much worse in Q3 when sales of Lumia dries up. Microsoft will pay its final instalment of $250 million in Q3. Don't forget retrenchment payments to retrenched staff which will hit in Q3.

I expect Nokia's cash to deplete by €2 billion in Q3 and another €2 billion in Q4 if WP8 phones aren't released in Q4. So Nokia will be insolvent by end 2012 if WP8 phones are delayed until 2013 which seems very likely as I expect MS to delay WP8 until Dec. 2012.