Nokia bleeds $1.38 billion in Q4; sales drop 21 percent
1/26/2012 9:22 PM EST
A good target for acquisition?
Gold, meanwhile, pointed out that Nokia may not even survive if it continued to hemorrhage funds, citing the firm as a possible candidate for acquisition.
“Unlike RIM, who everyone beats up on, Nokia is actually losing money. RIM is still making a profit, Nokia is making a loss and I worry about them,” Gold said. Indeed, RIM sold 14 times as many BlackBerry devices as Nokia sold phones this quarter.
Gold said he saw Nokia as a possible acquisition target, potentially for an Asian company like Huawei, ZTE or Lenovo.
“They’re not hurting for cash and by buying Nokia they’d be getting themselves an install base and distribution channels in Europe and South America,” he said.
Despite Microsoft having invested significantly in Nokia, Gold doesn’t believe the software giant would buy the phone firm if it came down to it.
“It’s never good to compete with your own channel,” he said, pointing out that Microsoft would make itself no friends with its other partner OEMs like Samsung and HTC. “That would be like Intel buying a PC manufacturer,” he added.
Ultimately, however, whether Nokia gets acquired or goes it alone, the firm is rapidly running out of time to figure things out.