Opinion

Nokia credit rating cut again, but could a turnaround happen?

A report from Forbes reveals that more than a month after Nokia and Microsoft first announced their collaboration there is still significant doubt over the firm's future.

Corporate financiers and credit arbiters Moody's have become the latest agency to downgrade the troubled Finnish mobile giant.

Analyst Wolfgang Draack said it had an "inflexible" OS, slow time-to-market and "more attractive" innovation by competitors.

However, Draack also noted that Nokia still had a good chance of turning its fortunes around.

This view was backed up last week by IDC, which reckons Windows Phone will capture the number two spot in the smartphone OS stakes by 2015.

Rival Gartner is taking took a similar view. After a recent bout of crystal-ball gazing it suggested that Windows Phone could take third place by 2014 purely on the strength of the Microsoft-Nokia alliance.

Both IDC and Gartner, by the way, reckon that Android will be number one (unsurprisingly).

So could Nokia pull off a turnaround?

Yes, actually it could. There are a lot of positives in this for both parties.

However, a lot needs to happen, and it needs to happen more quickly than it currently is.

Why so? Well, as things stand, both Nokia and Microsoft have a huge opportunity to capitalise on their cumulative strengths.

However, they won't be putting out any product for some time yet.

Now, I'm not suggesting that they should rush development of a Nokisoft handset as soon as possible; there's no doubt that the end product would be shoddy.

But the market appears to want to see strong evidence of their collaboration soon. At the minute Nokia is basically in limbo. Every week that it remains there creates more fear, uncertainty and doubt over its future.

This was first published in April 2011

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