Nokia to lay off 3,500 employees and closing plants in Romania

Nokia makes a breakthrough. But this is not about the product. As quoted from Tribunnews.com, mobile phone giant Nokia is actually laying off 3,500 employees and closing factories in Romania as part of efforts to make healthy companies.

April, Nokia announced the dismissal of thousands of employees, among others, to save one billion euros.

In addition to closing a factory in Cluj, Romania, Nokia is also considering taking similar steps for their factory in Finland, Hungary, and Mexico.

Nokia last July after losing sales and revenue decreased in the two quarters. Net loss of 368 million euros in the period of three months to June.

What might say, now Nokia does not compete with Apple and the companies that use the Android operating system.

In fact in the last three years, the value of Nokia shares fell 67 percent. It certainly happened after Apple Inc. released its product, the iPhone.

Just for the record, the market capitalization value Nokia has been eroded by 60 billion euros or 77 billion dollars since the iPhone debuted in 2007. Over the past year, stock prices are leading mobile phone manufacturers dropped 25 percent. Nokia even has twice lowered profit forecast.

Nokia's time to taste the sweetness of the mobile phone business through the launch of the N95. This product is able to increase margins to 21 percent of company revenue. However, since Apple and Reseacrh in Motion Ltd. to enter the market, the margin of a product that is only N95 increasingly depressed by 12 percent in the first quarter.

The question then, can the excellence of Apple and Nokia rival companies smartphone (smart phones) that have been using the Android operating system.

Or at least Nokia can compete with mobile phones from China and South Korea, which in fact has been also eroded Nokia's market is large enough. Of course we do not want Nokia (which ever victorious) in name only. Is this the twilight of Nokia? time will tell.

http://lampung.tribunnews.com

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