The only problem was lack of supply, but that was stated on Jan. 24th, old news. They are ramping up production, so it will only add to profits as they meet demand. Desperate to scare the stock lower, maybe it will work for a day or two, but probably not.
Remember Bloomberg is the same mag that predicted in 2013 Nokia would sell it's entire mobile phone division to Chinese company. Siting NO SOURCES mind you. Now if that is not a " whisper in the wind and tea leaves " I don't know what is. Bloomberg has an agenda.
Bloomberg had sources for THIS article though. A China Mobile spokesperson and a Nokia spokesperson! You just cannot spin lack of supply into anything positive. Sorry Nokia apologists, but that dog just won't hunt.
My concern with the article wasn't the lack of supply - we knew that. It was the stunning lack of demand. Are they not ordering many because they know they can't deliver yet, so they're just waiting ,or is the demand really that weak. Demand is less than 10% of what I would have expected.
I knew about this last month but did not want to say anything negative so I did not. Bloomberg sort of feeds into everything. I did not find that article until I looked at this board. So I guess most would have missed it if it was never mentioned. Since it is out publicly the company could release an official statement right now as far as how much has been corrected as of this date today.
I recall hearing of the supply problems, but I don't recall anyone citing specific numbers, like those in the article.
A reasonable read of the article - there was a problem with supply/production, and as of yesterday the problem continued, and Nokia's working in resolving it.
If the numbers are accurate, the problem was substantial. The only question is when will it be resolved, and how long will it take to ramp up production once resolved?
On the plus side - we hear less about supply problems with non-Chinese 920s, so we can hope the Snapdragon supply problem is over, or well on the way to ending, and we can hope there are no further supply problems with 920s outside of the China version.
We can also hope - on the plus side - that Nokia has learned from these supply problems and has taken steps to ensure similar problems don't occur in the future. Everyone makes mistakes - what makes people (and organizations) different is do they deny the problem, or do the learn from the problem.
Mistakes and incompetence are not the same thing. The owners of the company (share holders) are paying the leadership of Nokia big bucks to ensure that sh1t like this does not occur, we are dealing with a scandalous mismanagement 101. on top of it all the company is tight lipped as though they are dealing with national security issues. Imo this lack of disclosure will get insiders in trouble with the SEC, Nokia will have to come clean and tell share holders what the f#%$#@ is going on instead of smirked smiles and no ^$&$% comment bs.
I definitely appreciate your comments. Well-spoken and insightful.
My question is on demand. That 90,000 orders of Lumia 920T is extremely low. Some here have stated they believe it is incorrect. However, I find it difficult for that to be a misprint or a misstatement.
I contacted the authors of the Bloomberg article for clarification. Wonder if they'll respond. But at least I'll try and know that I'm doing my best to research the issue.