Originally Posted by etuoyo

I did not read the financial reports. I merely quoted what Gizmodo said - "profit". Maybe in the US profit is used to mean net income or maybe Gizmodo intentionally used net income as profits to paint as bad a picture of Nokia as possible. Either way your issue should be with Gizmodo and not with me. Unless I am expected to read the financial reports of a company before quoting something from an article

Originally Posted by Enyibinakata

You consider a quote from gizmodo credible ? No the issue is with you, and your zeal to mock Nokia. You ought to know better Hahaha

Originally Posted by etuoyo

Are you insane? You think a company distributes all its profits in dividends? That is far from the case. Nintendo for example is sitting on billions and billions of cash. The board decides out of the available profits how much to distribute. Decisions will also be made as to how much to pay staff and how much to spend on R&D.

A company which brings in mad profits and has lets say $10bn cash is almost more likely to spend more on R&D than a company that has only $500m cash.

And yes increasing R&B budget does not automatically result in an exact proportionate increase in product quality but can you seriously suggest that increased cash on R&D and getting the best staff on board does not increase likelihood of increased product quality?

And the shared view here that things are so rosey at Nokia (shared with Nokia execs it seems) and they should continue as they have been may be the reason why Apple has come out of nowhere and blown them away and why it will not be a shock to see HTC do the same.

Originally Posted by ossipena

you must be insane and missing the big picture. afaik nokias r&d spending has been about the same except a drop because of 50% less new models to market -decision. so r&d budget hasn't dropped from 9 million to 300k.......

Originally Posted by etuoyo

I am not saying it has dropped. I am saying a reduction in R&D budget (as well as other cost cutting) is a possible effect of falling profits (and therefore less cash). Just like during the recession many companies laid staff off. Because they had less cash they needed to cut costs and easy way to cut costs is to cut staff. For a tech company R&D is another way to cut costs.

If you feel that is not the case then I fear it is you that is insane and missing the big picture. It may take 5 years of falling profits for Nokia to cut R&D. It may take another company 1 year. It is an executive decision and will vary from company to company and industry to industry. But it is certainly a possible effect of falling profits and reduction in cash pile.

Originally Posted by danramos

Would you like WiFries with that?