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Instant View: Nokia Q3 in red, sees tough Q4
HELSINKI (Reuters) - Nokia (NOK1V.HE) reported another quarterly loss and dwindling cash reserves on Thursday, raising the stakes for next month's launch of new Lumia smartphones it hopes can dent the dominance of market leaders Apple and Samsung.
The following are analysts' reactions:
INGE HEYDORN, FUND MANAGER, SENTAT ASSET MANAGEMENT
"Networks is what stands out as being really, really good, both on sales and margin. So the market is trading up Ericsson shares on this. In the phone business there's nothing odd, neither in terms of profit in the third quarter, nor in terms of the guidance for the fourth quarter."
"I think Nokia will continue to have a rough ride (for cellphones). Networks is also a tough business, but they seem to do pretty well in the third and fourth quarters."
ANALYST MIKKO ERVASTI, EVLI BANK
"The outlook was a bit soft, but quite in the ballpark."
"Nokia Siemens Networks' result was amazing, it seems the cost savings start to push through. The cash-burn rate for the company is tolerable and totally understandable taking into account Nokia's situation."
NEIL MAWSTON, STRATEGY ANALYTICS
"It looks like feature phone numbers were above expectations slightly, but the smartphone numbers are quite a bit below. It's likely that other vendors like HTC or Sony or RIM may have overtaken Nokia in smartphones, though that is not confirmed yet."
"While their smartphone division is struggling their feature phone division is doing okay, but feature phones are a sunset technology and smartphones are sun rising, so they need to transfer growth to the sun rising technology."
CAROLINA MILANESI, GARTNER
"Mobile phones were good, but this was the only place to look for a good news. Nothing good could have come from smart devices as there were no new products."
"The fourth quarter will be tough for everybody in mature markets as you will not see the typical hype around smartphones. The hype this year will be about tablets."
PETE CUNNINGHAM, CANALYS
"We expected that Nokia's third quarter was going to be tough for its smartphone business due to the announcement of Windows Phone 8, however this is worse than expected."
"The fourth quarter will be a tough one as it will take a couple of quarters to ramp up Windows Phone 8 volumes due to the competitive landscape."
GREGER JOHANSSON, REDEYE
"Looking at the Q3 figures, Mobile Phones was as expected while Networks actually came in quite a bit better, both in terms of margin and sales, so that is positive."
"On the other hand, I saw that the guiding for the fourth quarter was pretty broad in terms of results, which could be interpreted quite negatively."
"Overall, in light of the fact that the stock has fallen so extremely much, and with all the known problems, nobody was expecting any great things. So, against that backdrop, the report was alright, and they still have quite a bit of cash left."
GEOFF BLABER, CCS INSIGHT
"Lofty market expectations for Q4 ignore the reality that new products will ship halfway through the quarter into an overwhelmingly competitive and congested market."
"Nokia has never been more reliant on its mobile phone business. Success with Windows Phone remains as dependent on the continued success of Series 40 as it is on Microsoft."
(Compiled by Helsinki and Stockholm newsrooms; Editing by Hans-Juergen Peters)
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