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Old 18-02-2010, 12:56 PM
Posts: n/a
Money often goes a long way in explaining things, such as the negativity against Nokia in the US media.

For example, Nokia is a competitor to US companies, and unlike several Asian manufacturers, it did not decide to use the Google controlled Android operating system, maybe later on it will be strong competitor against Google in terms of advertising etc. Also, historically we usually see protectionism during financial downturns (such as we have now, consider the sky high unemployment rate in the US for example), and more free trade during the boom periods. But protectionism now is not like in the 1930´s, now it is more about propaganda than trade blockades. The best thing Nokia can do in such a scenario is to cooperate more with US companies and make them more "dependent" on Nokia, i.e. that if Nokia fails these companies will also to some extent "fail"; the cooperation with Qualcomm, Intel, Microsoft etc is benign in this sense, also R&D institutions in US. I think Nokia execs are aware of this. What more they may do is put much more money into advertising in the US, maybe cut prices further there etc (initially), cooperate better with the US carriers. (I am observing that on - mostly US customers - , Nokia is actually quite popular, one main reason is the affordability of the phones.)

One may also observe that a lot of the US stock investments abroad has been withdrawn and invested again back home (examplified by the US stock markets like S&P & Nasdaq down only half or less since the 2007 peak than European and Asian stock markets). Finally there´s probably a lot of manipulation and speculation going on, especially in some tech stocks. One could only observe the volatility of companies like Apple and RIM: in 2007 Apple was going from $80 to $2000, in 2008: from $200 down to $120 and up again to $190, in 2009: going from $80 to $200. During the downturn period, one would see a lot of negativity in US media even against Apple.

I think the situation is about to change now. First, Nokia is trading at an "unsustainable" low level, and should only go up from here. This coupled with more good news and less negative news over the next year or two may lead to speculations in Nokia and then we may see it going up quite a lot. This could be accompanied by more positive sentiments in US media. But the macroeconomic situation is still rather shaky, so who knows what will happen going forward.

I am not suggesting these are the only reason for the negativity against Nokia. One should also consider Nokia´s failures, its inferiority in many ways compared to Apple´s iPhone, the bug-ridden recent phones, problems with the Ovi-store, the lack of good apps etc. But this cannot explain why the N900 or the Booklet 3G has gotten so much negative reviews (if at all), or why there´s not similar bad sentiments against other companies, like Motorola which is clearly going downhill.