Tech giant sinking as Apple and Google keep growing
Nokia, the Finnish technology company, maybe a corporation which is looking downwards rather than upwards. Back in the late 1990’s, the mobile-phone maker was the leader in mobile devices and even surpassed the then No.1 tech giant, Motorola. The company was worth a mighty £200bn at the time. This showed the ultimate power Nokia had over the technology world. However recently, Nokia has not been able to keep up with the likes of Apple and Google. As these two tech titans keep growing, Nokia seems to be in decline.
Recently, Google and Apple have dominated the technology world, and seem to give consumers exactly what they want. Innovations such as the Apple iPhone and Google’s Android operating system, seems to be what the people want. However Nokia is losing out, and it shows by just looking at their current market capitalisation. Nokia is worth a mere £21bn now compared to its high of £200bn back in the late 1990’s. This just shows you the decline of the company. Last year, Nokia spent double the amount that Apple did on Research & Development (R&D) on devices. One hope of optimism for Nokia is that they are teaming up with Microsoft to create Nokia smartphones which run the Windows operating system.
I think Nokia is definitely a company in decline and the financial analysis shows that. However, I believe that the joint venture with Microsoft may temporarily boost its hopes and become a real contender in the smartphone market. Nokia’s shares are declining and this shows bad performance, however this is not always a bad thing. An opportunity could arise from such poor performance, and I think the possibility of a potential takeover should not be taken lightly.
Below is the link to a great article from Money Week: