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Analyst downgrades Nokia after iPhone 3G

updated 10:05 am EDT, Tue June 10, 2008

Nokia Down After iPhone 3G

Nokia shares are no longer recommended after the launch of the iPhone 3G, analysts at American Technology Research said late yesterday. Experts at the financial group dropped their valuation for Nokia from Buy to Neutral in the belief that a raft of "third-generation smart-phone introductions" due for the second half of 2008 and early 2009 are liable to hurt Nokia without clear signs that it can match the same pace. The smartphone industry is increasingly competitive and puts added pressure on the Finnish company, which leads the world smartphone market.

"While [its] valuation is attractive and sentiment low, we do not recommend new money until we get a competitive response from Nokia," AmTech says.

In addition to the impending release of the Apple handset, RIM will improve its own standing in the market with the BlackBerry Bold and potentially the Thunder. HTC in turn is overhauling its touchscreen line with the Touch Diamond and Touch Pro.

Nokia has already said it plans to bolster its line with the N96 media phone as well as two Eseries phones that all compete in similar categories, but has raised concerns over its unusually high pricing for the confirmed N96. The phone will cost about $800 before taxes or carrier discounts and may sit outside the reach of more customers; no US plans have been announced, though the N95 is sold strictly as a full-price unlocked model. The iPhone, Bold, and Touch phones will be priced at or below $300 for a subsidized version.

by MacNN Staff



  1. csimon2

    Joined: Dec 1969


    4th Gen

    Technically, we are heading into the fourth gen of smartphones now, at least Nokia is. Nokia, Sony, and Palm have been shipping smartphones in bulk since 2001.

  1. Arkham_c

    Joined: Dec 1969



    Nokia sells 95 million phones a month. A tiny, tiny, TINY fraction of those is in the smartphone market.

    Apple's not a huge worry for Nokia. Honestly, Nokia's more interested in destroying RIM right now than Apple.

  1. countach

    Joined: Dec 1969


    Not Stupid

    Yeah, but Nokia makes no money on cheap entry level phones. And as time goes on, entry level phone shipments will go down, smart phones will become mainstream. This is not a formula that makes you want to invest in a company.

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