As per a report from Reuters, Nokia is said to be toying with the idea of selling their headquarters in Espoo, Finland in order to cut costs further.
Nokia’s spokeswoman Maija Taimi stated that they are looking to get rid of the non-core assets such as real estate holdings including their head quarters. The Nokia headquarters, made of steel and glass close to the Baltic Sea is one expensive piece of real estate valued at a whopping 300 million Euros approx.
Another spokesman for Nokia has added that Nokia doesn’t plan to move away from the location which means they are most likely to lease the HQ back after selling it.
But in a separate report from Credit Suisse, one of the largest financial services entities across the globe has stated that they have lost confidence in the ability of Nokia to stage a comeback irrespective of the cost cutting measures being undertaken by the Finnish giant. They believe that Nokia’s stock is going to slide further to levels below 1.60 Euros ($2.07).
And the much awaited Windows Phone 8 devices, viz, Lumia 920 and Lumia 820 can do little to turn the tide. And Credit Suisse Analysts have been bold enough to suggest that the Finnish giant better split itself and sell off some of its key assets like IP or the Nokia Siemens network. They add that a giant like Apple might be willing to pay handsomely for their valuable intellectual property and firms like Huawei, ZTE might lap up parts of Nokia Siemens network.
With Nokia managing to sell just about four million Windows Phone in the second quarter of 2012 the predictions indeed look reasonable. Add to it the fact that the current crop of Windows Phones will be obsolete, as they are not upgradable to WP8.
To add insult to injury the new crop of Windows Phone 8 Lumia devices will not launch anytime before mid November resulting in loss of prospective customers as devices like Samsung Galaxy SIII and Apple iPhone 5 further gobble up the market share.
