Remember about a little over a year ago it was predicted that T-Mobile would disappear? Well the same group that predicted TMo's fate is now predicting that Nokia could close its doors in 2012.
24/7 Wall Street is predicting Nokia, along with other notables as Sony Ericsson, Sears, Saab and Kellogg's Corn Pops could disappear in 2012. Quoting from their reasoning behind predicting the demise of Nokia the articles states,
"Nokia is dead. Shareholders are just waiting for an undertaker. The world’s largest handset company has one asset: Nokia sold 25% of the global total of 428 million units sold in the first quarter. Its problem is that in the industry, the company is viewed as a falling knife."
24/7 does recognize that Nokia is in the process of changing over to "Microsoft Window mobile OS" but doesn't see that as helping because "Window mobile" has a tiny share of the market. The most likely scenario is that Nokia will be purchased potentially by HTC, Samsung or LG Electronics. The possibility of Microsoft buying Nokia is also mentioned.
We're not sure how much stock to put into these predictions of fate. In 2011 the list of companies predicted to fail included Blockbuster, Zales, RadioShack, Reader's Digest, and Thrift Auto Rental. Last I checked, along with T-Mobile, all of these companies are still around. We see Nokia as a strong contender in the smartphone market and that their partnership with Microsoft and Windows Phone will be a positive for the company.
I guess only time will tell which prediction is right.
source: 24/7 Wall Street Thanks goes out to the Doctor for tipping us on this!
