Nokia is a company specialized on the design, fabrication and sale of mobile phone equipment. Its activity is varied and comprises the sale of mobile phones and smartphones, multimedia products and software, but also the management of telecommunication networks and the sale of various mapping devices.
Most of its turnover is generated in Japan but also in Europe, Asia and the United States.
Nokia’s main competitors:
More than ten years ago, Nokia was still the leader in the sector of mobile phones, especially thanks to the success of its Nokia 3310 telephone. But since then, numerous competitors have been able to make a place on this market and drop the Finnish manufacturer in the classification of the largest mobile phone manufacturers. To understand better the positioning of Nokia on the sector, here is the list of Nokia’s main competitors:
- In 2017, Samsung was the leader in this sector with 18.3% of shares on this market.
- Apple is number 2 in the market of mobile phones and follows Samsung closely with 18.1% of shares on the market.
- Followed by Huawei with 10.6% of shares on the market.
- Oppo ranks fourth with 7.3% of shares on the market
- Finally, the fifth place of the list is occupied by Vivo with 5.8% of shares on the market.
Nokia has been trying to reposition itself in this ranking since some years, especially by developing innovating smartphones.
Nokia’s main Partners:
During the last years, Nokia has attracted several large companies with which it has established strategic partnerships.
In 2007, Nokia signed a partnership with some mobile phone operators such as Vodafone in order to offer a mobile community social network named Mosh which finally didn’t have the expected success.
In 2011, Nokia became also the partner of Microsoft by making Bing the main search engine of all its branch of smartphones.
Nokia has also negotiated several partnerships with car manufacturers such as BMW, Mercedes or Volkswagen in order to enter in the sector of integrated navigation systems.
Other partnerships with smaller companies are also in course but we are not going to mention them here.
Analysis of Nokia’s share price:
As you can imagine, the changes on the price of Nokia’s shares on the stock market depend mainly on the technological innovations made by the group. In this sense, it is essential to follow the news in this sector.
The tax of profitability of this asset has for example evolved by 20% in 2012, which made this asset more attractive for investments in the short and long term for traders who are looking for safe profits.
Important stock market data about Nokia:
In addition to the detailed information about the financial history of Nokia, its activities and the evolution of its course of action on the stock market, we invite you to find out some more general data that is also important to know
-In 2017, the total market capitalization of Nokia was about 28 509. 13 MEUR
-The number of securities issued by Nokia and in circulation on the market is currently around 5 836 055 012.
-Nokia’s share price is currently listed on the compartment A of the Euronext Paris market.
-Nokia is also part of the composition of the French national stock market index CAC 40 and it is thus listed among the 40 French enterprises with the highest stock market capitalization.
-Nokia’s shareholding is made up of 2.02% of shares from Varma Mutual Pension Insurance Company, 0.74% of shares from Ilmarinen Mutual Pension Insurance Company, 0.64% of shares from the State Pension Fund and 0.60% of shares from the Schweizerische Nationalbank. The rest of shares are owned by individual shareholders.
Nokia’s economic and financial history:
To better analyze the historical stock market charts of the course of action of Nokia, here are some important events to that have marked the recent history of this company with the key dates over the last years:
In 2010, Nokia announced the acquisition of a large part of Motorola’s wireless network equipment division. The same year, the nomination of Stephen Elop as CEO of the company seemed as a disguised takeover by Microsoft. Information confirmed in 2011 with the announcement of a partnership between the two companies. The title then lost 20% of its value.
In 2011, Nokia announced the elimination of 4000 posts and 3000 outsourcing, and then the closure of its activities in Romania and the suppression of 3500 employments around the world. It then launched the range of smartphones Luminia.
In 2012, Nokia announced the suppression of 10 000 employments and the elimination of several sites in Finland, Germany and Canada.
In 2013, Nokia bought the shares of Siemens in the Nokia Siemens Networks. At this moment, Nokia was the second largest manufacturer of telephones in the world behind Samsung. The same year, the company sold its division of mobile terminals to Microsoft for 5.44 billion of Euro.
In 2014, Nokia focused its activities on the fabrication of telephone and mapping equipment. The company launched the X range of smartphones with an Android operating system. It created an investment fund of 72 million euros for companies of connected cars and bought Desti, a company specialized in artificial intelligence and certain activities of Panasonic equipment.
In 2015, Nokia announced the purchase of Alcatel Lucent through an exchange of titles. Nokia then sold its mapping subsidiary Here to German car manufacturers.
In 2016, Nokia bought Withings and announced the suppression of 10000 employments.
Finally, In 2017, Nokia announced the probable acquisition of Comptel, a software design company.
What are the advantages and the strengths of Nokia as a stock market asset:
As an investor, you must probably be asking yourself what are the advantages of Nokia shares which could push you to choose this value instead of others to trade online. We invite you therefore to find out more in detail here the strengths and the advantages of this companies in the years to come.
The first thing to mention about Nokia’s shares is that its issuing companies has an interesting positioning on the market of telecoms. In fact, after its fusion with Alcatel-Lucent, Nokia has succeeded in exploiting its positioning among the three leaders of this market internationally which has given a certain security to this title.
Nokia also has an undeniable advantage concerning its geographical presence in the world. Always thanks to its fusion with Alcatel-Lucent, the new group has a strong international coverage and an excellent distribution in the different major economic zones of the world. Nokia is particularly well represented in North America where it generates more than 31% of its turnover, it reaches the highly coveted Chinese market too with more than 15% of its turnover coming from this country. Of course, the company is also well represented in the European market with 21% of its turnover coming from the European Union and finally, the Asia-Pacific market is not left behind since it counts for 18% of the company’s turnover.
In addition to being one of the top 3 in the market of telecommunication in the world, Nokia has established itself as a leader in many very specific sectors, enabling it to build its reputation and strengthen its image as a specialist. Also, Nokia is currently the world leader in the sector of broadband access in ADSL and FTTx. It is also the international leader in the production of optical transmission technologies, the integration of triple-play/IPT and is strategically positioned in the domain of fixed and mobile networks and even if It is not number one in this sector. There are also other highly coveted sectors on which Nokia has position itself among the largest players such as in the sector of Ip routing, DWDM optics, core routers or still the applications and services associated to the cloud.
Of course, Nokia does not count with its acquisitions to guarantee its future results and remains before anything a company focused on technological innovation. We need, in fact to underline the strong innovative capacity of this group which has invested nearly 5 billion of dollars in R and D. The goals of this company in terms of research concerns in this moment mainly the 5G network which is the objective of very strong competition from the part of all player of telecom. But the group orients its development also towards other domains which are also varied such as the virtual network, the cloud, the analysis of network data, the captors and high quality imagery with so many possibilities to surprise the public with profitable innovations.
Nokia also counts already with a profile of patens whose value is more than 8 billion euros and beneficiates of partnership contracts about the sale of terminals with the giants of telecom such as LG or even Samsung which guarantees comfortable revenues.
Of course, Nokia does not intend to be content with its achievements to guarantee its future results and remains above all a company focused on technological innovation. It is necessary to underline the strong capacity of innovation of this group which invests nearly 5 billion dollars in R & D. The company's objectives in terms of research currently concern mainly the 5G network, which is subject to fierce competition from all telecom players. But the group also focuses its developments in other areas as diverse as virtualized networks, cloud, network data analysis, sensors or advanced imaging with as many opportunities to surprise the public with profitable innovations.
Nokia also has a portfolio of patents with a value of more than 8 billion euros and benefits from partnership agreements on the sale of terminals with telecom giants such as LG or Samsung which guarantee a comfortable income.
Finally, for investors, Nokia offers the advantage of regularly making returns in the form of repurchases of shares that prove particularly profitable.
The disadvantages and weaknesses of Nokia as a stock market asset:
As we have just seen, Nokia’s shares offer many advantages for investors and is a rather safe value to invest on in the years to come. But of course, this title does not only have strength, it has some weaknesses as well, which are important to know before you embark in the online speculation of this asset. Here is therefore the summary of the main disadvantages of this value.
Nokia has first of all a weak point concerning the future of some of its activities such as mobile phones. In fact, the current economic news of this company has recently shown that some investors that have tried to come close to this group focus their strategies towards a resale of the branch of mobile phones of the group which they considered as being too small and not profitable enough compared to its competitors and other activities of the group. This feeling also concerned the convertibles.
Some investors who use bank investment products to invest in Nokia stocks may also be disappointed with the end of the eligibility of this title to the SRD. This is due to the relocation of the company's headquarters to Finland after the creation of the new group Nokia corporation, which slightly legally modified the use of securities in Europe and France in particular.
It should also be noticed that the addressable network market remains a rather complex and difficult sector of activity since the year 2016 and that the mobile market shows a certain stability but also a lack of possibilities for positive evolution. To these uncertainties are added other doubts, particularly regarding the new Finnish management of the group that could significantly alter the long-term strategy of the company. This is expected to include a reduction in the company's workforce internationally as well as other decisions that could worry investors or slow down positions for purchase.
In addition, while Nokia has always been generous with its shareholders, it should be noticed that the Alcatel-Lucent group with which it recently joint ventures does not have the same benefits in terms of redistribution. In fact, the latter has not paid dividends to its shareholders since 2006, which could affect new shareholders.
Finally, it is important to know that Nokia has received a recent warning about its margin and turnover in 2017, which resulted, as you can see in the historical charts, a strong negative reaction on the market at the end of this year.
Some advice to carry out a good fundamental analysis of Nokia:
If you are planning on trading on Nokia course online, we advise you of course to use a maximum of different technical indicators to take your decisions. But the technical analysis will not be very useful without a good fundamental analysis in parallel. Here is therefore the fundamental data that you should closely monitor, to help you put in place a complete strategy.
First of all, you should know that the value of Nokia is very sensible to the news of some of its competitors. So you should carefully monitor the statements of companies such as Vodafone, Ericsson and AT&T.
Nokia’s recent fusion to the group Accenture and the contracts obtained must be carefully monitored as must the consequences of the recent fusion with the Alcatel-Lucent group. By the end of 2018 we are expecting more than 1.7 billion euros of synergies and a net cash of 7.4 billion euros with an overall improvement of the balance sheet.
Other recent partnerships should also be carefully monitored in order to estimate the profitability of said partnerships. This applies particularly to the partnerships with Samsung electronics as well as for that signed for the creation of the joint venture with the Chinese company Shangai Bell.
Finally, and as we just saw above, it is important to keep an eye on the future relationship between Nokia and other companies or with certain investors and on the eventual decisions that could arise in particular concerning the management of certain specific activities of the group considered as not so profitable.
Thanks to this data, you will be able to carry out a complete analysis of Nokia action and make sound decisions.