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Prentice Capital Management was up 6.6% for the first four months of the year, compared to the S&P 500's 9.3% decline and the Russell 2000's 21.1% decline. The HFRX Equity Hedge Index was down 9.4% for the quarter. Q1 2020 hedge fund letters, conferences and more Gross and net exposures In his first-quarter letter to […]
Steven Elop isn’t quite ready to give up on his company. The chief executive officer for Nokia Corporation (NYSE:NOK) shared his predictions for the company during Thursday’s earnings call event.
Elop said that he thinks smart phone carriers will eventually tire of selling Androids and iPhones, and want to start selling Windows Phone 8 devices. He was quoted, ““There’s a dynamic that we’re seeing and hearing about … and that is increasing concern amongst operators about the concentration of power that is landing with two particular ecosystems that are obviously quite strong out there today. I think you’re going to see a trend, where operators, starting in the west begin to say, ‘We need a third ecosystem to really begin to happen. We really need to double down on it. We need to cause it to happen.”
Could this be another lofty ambition or is he actually onto something? Only time will tell but for now, things aren’t looking so good for Nokia Corporation (NYSE:NOK). Just this last quarter, the company lost $1.3 billion. It was their sixth quarterly loss in a row.
Elop thinks that will all change as he predicts companies will reach out to Microsoft Corporation (NASDAQ:MSFT), in hopes of selling the new phones during the fourth quarter.
It’s interesting that Steven Elop has such big predictions for Windows 8 Phone. Unfortunately, he didn’t go into a lot of details as to why the carriers would want the phone. The Nokia Corporation (NYSE:NOK)’s Lumia brand is a hard sell, despite it’s impressive design and somewhat advanced features. The main reason it’s not selling well? It’s not an iPhone. If people are going to spend a lot of money on a smartphone, they want to know it’s going to be a quality phone. Apple Inc. (NASDAQ:AAPL) invented the smartphone, and they’ve been in the game for a while. Nokia’s Lumia phones are still relatively new in comparison, and people just aren’t that interested in their phones. If Elop’s prediction is right, it will be surprising.