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Saturday, 3 November 2012

Nokia may have to write-off millions of Lumia handsets

Apparently, the Finnish mobile phone manufacturer isn’t going to get rid of troubles so easily. Stockholders are already dumping the stock, and the share value of these stocks has reached the bottom. But, there’s more to come for Nokia. As we have observed, Microsoft has betrayed the mobile maker by releasing a new version, which is not compatible to the existing Lumia smartphones. As any nincompoop can guess, no one would bother looking at a smartphone with a dead operating system.

Interestingly, the European telecommunication giant has decreased orders to ODM Compal Communications for the Lumia phones as well, which assisted Compal's incomes to decrease 39.5% successively in June. In simple words, they will be forced to write-down possibly thousands of Nokia Lumia devices.

RDC Capital Analyst Mike Sue has stated that the troubled mobile maker will write down Nokia Lumia units which it would be unable to sell with the impending Windows Phone 8 phones expected to hit the market soon. He expects the company to write down billions of units in stock, which would assure red ink on the firm's bottom line for the complete year. Cost-cutting has worked well in the United Kingdom to encourage sales as the Nokia Lumia has revisited the iSwitch's Top Ten U.K. phones in 8th position (on top of the 16 GB Apple iPhone 4S & beneath the HTC One S). It was the smartphone's first emergence on the listing since February.

Unsold stock of Nokia Lumia handsets will end up sold at very affordable prices, publicized as an temptation to sign up for a particular data plan, retailed to third-party discounters or plainly destroyed. Any income the Finnish mobile maker gets from retailing the handsets after a write-off would be good for the company.

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