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Nokia Cancels $5 Billion Worth of Manufacturing Contracts

Article Comments  56  

Mar 28, 2009, 12:04 PM   by Eric M. Zeman   @phonescooper

Nokia recently announced that it has slashed its outsourcing operations to the tune of $5 billion. Nokia uses several outside companies to manufacture some of its phones. In 2008, for example, about 17% of all Nokia handsets were not actually made by Nokia. Nokia said it has completely halted all outside manufacturing, and will make all its own phones for an undefined period of time. Nokia cited the slackening demand for handsets worldwide for the scale-back.

more info at Reuters »

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Comments

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This forum is closed.

murmermer

Mar 28, 2009, 2:09 PM

GOOD!!!

I hope Apple takes the #1 spot when 3.0 comes out!!! The only thing I love more than my country is watching businesses in my country KICK EVERYONES ASS with a better product!!!!

USA! USA!! USA!!!

we are the champions, WE ARE THE CHAMPIONS! OF THE WORLD!!
screw apple, they make crappy OS and even worse desktops, the Iphone is crap you can;t even multi task on it. and Apple outsources almost all their production so your U.S.A all the way crap is just that, crap. check your facts before you start spouti...
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I hope you know Apple outsources production of almost everything. The only think I know that Apple actually makes itself are some mobile chips it makes from a recent acquisition.

Asus makes a many, if not all, Apple branded products.

Apple is...
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murmermer said:
I hope Apple takes the #1 spot when 3.0 comes out!!! The only thing I love more than my country is watching businesses in my country KICK EVERYONES ASS with a better product!!!!

USA! USA!! USA!!!

we are the c
...
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According to the data I've seen, Blackberry is the #1 selling pda phone. Business people don't usually buy the iphone from us because of the limits on email attachments and the fact that it is an entertainment device more than a pda. The other problem...
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well put murmermer very well put i could not agree more.
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Slammer

Mar 28, 2009, 2:23 PM

Nokia's problems.

This is my take and only represents my opinion:

Nokia is the #1 phone maker in the world with 40 percent sales of phones. Only 10 percent of sales in the States. America is a tough territory for Nokia. While they make a great device, America has been given a huge handout of software choices. Nokia has been rather weak in this area. Google and Apple have now joined Windows Mobile for dominance in America and have their eyes set on worldwide use. This is now going to make it even tougher for Nokia.

I think Samsung and LG have done a great job of conforming to America's needs and wants. This also helps these two in getting world attention as well. Time, the Economy and Nokia's strategy approach is going to be key to recovery or they may...
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it's possible, and most likely. though i really hope your wrong.




NokiaGoth Twisted Evil
You forgot Blackberry. BTW choice is a good thing. Many of the companies make fine products. Competition is also good, it pushes all makers to push the envelop.
Nokia's problem in the U.S. is that they are developing their own revenue portal, namely the Ovi site. U.S. carriers don't want this, they have their own revenue services to sell to their network users, they don't want any competition. For that reason...
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netboy

Mar 28, 2009, 1:02 PM

no1 buying Nokia because

of their craps!
where is the Nokia with 800x480 and USA 3G?
No one buys Nokia? Are you serious? Nokia is the number 1 handset manufacturer in the world by a large margin. Do you think that happens by accident? You need to learn to keep your yapper shut on issues you have no idea about.
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you want some cheese with your whine?
algorithmplus

Mar 28, 2009, 5:46 PM

Weren't all CDMA devices outsourced? And isn't CDMA going to migrate to LTE? Good Choice for Nokia!

I thought I remember hearing that Nokia outsourced all its CDMA operations. With Verizon Wireless and most U.S. CDMA operators choosing LTE for 4G, it seems like CDMA is a dying breed (maybe not immediately, but in the long term.)

With Sprint seeming to be the only CDMA operator not choosing to deploy LTE, and Nokia and Sprint do not have the closest relationship anyway, I think it is a great move for Nokia.

While $5 billion is a lot of money, it seems like a good portion will be CDMA, and unless Nokia has resumed CDMA manufacturing, it is seeming to migrate away from it before the technology actually dies.

I wonder how much of the $5 billion are Nokia's GSM/HSPA phones? If Nokia is going to put all its resources into HSPA/LTE to...
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I think all the us carriers are switching to LTE atleast all the ones who will still be around once this depression goes away(If it ever does)
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The 3589i/3585 Nokia phones were like toys anyway and then those Pantechs that were passed off as Nokias. Whew! Good riddance.
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netboy

Mar 28, 2009, 3:15 PM

there a boy talks, and there are

there a boy talks, and there a man talks!
if Nokia is so great, i wonder y the stock price this year is trading from 34buk all the way down to under 12buk today!
now do a google on HTC and see how much profits they make quarters after quarters!
This news story was entitled "Nokia is the best company ever"?
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