S&P drops Nokia’s stocks down to ‘junk’ status

Yup, it seems that things really aren’t looking good for Nokia. After a former exec came out yesterday to say that Elop is struggling, and after Samsung took the lead as the world’s biggest phone manufacturer, knocking Nokia off the top spot, a bit more news has appeared today, and this time it’s about Nokia’s stock status.

According to TheVerge, Standard & Poor’s has downgraded the Finnish manufacturer’s stock status from low investment-grade, to non-investment; or, to put it another way, their stocks now have ‘junk’ status. So, that’s pretty bad, right?

The thing is, though, that they’re not the first firm to do that exact same thing…

Nope, the first firm to do that was Fitch, and they also downgraded their stocks to junk status. As for S&P’s reasoning behind the downgrade, they say that the Lumia line isn’t enough to counteract the rapid fall from grace of Symbian, the implication being that phones like the Nokia Lumia 900 are, well, underwhelming.

Since I’ve said the same thing, I’m inclined to agree…

Anyway, Nokia has responded, with a statement of their own, in which they said, “As we have detailed in recent announcements, Nokia is in the middle of a transformation program which encompasses every aspect of our business. We are implementing a decisive action plan to position our company for future growth and success. The main focus of these actions is on lowering the company‚Äôs costs, improving cash flow and maintaining a strong financial position, while bringing attractive new products to market.

It’s only fair to point out that in terms of revenue, they do still have a pile of cash to go at, before they run out, so things aren’t looking totally grim. As long as they can hold out till Windows Phone 8 is released, they’ll be in a stronger position, but until then, the situation seems distinctly dicey, to me…

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It's a little known fact Technical Markus has now beaten both his Transformers addiction AND his Mass Effect addiction, by replacing both with an equally obsessive addiction to XCOM: Enemy Unknown and buying Humble Bundles for his Android phone. At the moment, he's pondering the actual usefulness of smartwatches and smart glasses, even if the nerd in him is shouting for joy at how sci-fi they are. He spends his spare time being whinged at to figure out what's wrong with other people's mobile phones, and drinking unimaginable quantities of tea. With milk. And three sweeteners, thanks for asking. Oh, and he's got an HTC One X, but he reckons his next phone might be a Sony, the turncoat...