Telecom & Wireless

Hopium Driving Nokia

Nokia Corp. (NYSE: NOK) is trading higher today on what is probably nothing more than additional bad news for the company, if you read between the lines. The troubled phone maker’s Nokia Siemens Networks mobile network equipment venture is reportedly in talks to sell off its business support systems unit.

There is also word that Nokia now may launch its new Windows-based smartphone before year-end, rather than at an unknown time.

The venture was formed by Nokia and Siemens (NYSE: SI) back in 2007 and profitability has been hampered by competition, according to Reuters. The same report from Reuters has the Nokia Siemens CEO saying that venture wants to unload and divest some more of its product lines so that it can focus on mobile broadband. Ericsson (NASDAQ: ERIC) is speculated to be the likely winner, but in reality there may be five or six potential buyers.

On the issue of getting the smartphone out before the end of 2012, this is highly important if Nokia wants any traction. If Nokia misses the holiday season then it can kiss the smartphone market share goodbye for 2013.

Investors are hoping that Nokia does something right here, as shares are up more than 4.5% at $2.75. But note that trading volume is only 12.5 million shares, versus an average daily volume of almost 54 million shares. The 52-week range is $1.63 to $7.38.

JON C. OGG

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.