Having reported a 70 per cent drop in profits in the fourth quarter of last year, and also presented a pessimistic forecast for Q1/09, signs are building Nokia might be ready for an upturn in Q2/09. According to Barclay's Capital Research analyst Jeff Kvaal, the cell phone industry is in the process of clearing enough handset to return inventory to a normal level of 4 to 5 weeks by the end of March, and he considers Nokia could be a leading beneficiary of the return to growth.
Kvaal believes this upturn will be driven by Nokia rejuvenating its portfolio of handsets, together with the addition of new services via its Ovi division and the rollout of a Nokia Apps Store to mimic Apple's offering.
Other sources support this view claiming Nokia is preparing to launch several new 3G and 3.5G devices in 2009, many of which will feature multi-touch and multi-media functionality. The Finnish company is reported to have placed chipset orders for the new devices with Qualcomm, TI and Synaptics, and is also thought to have increased its orders with other silicon suppliers for delivery in March.
More good news for Nokia comes with its first touch-screen phone, the 5800, with retailers claiming considerable interest from potential purchasers, supported by operators offering variable low-cost monthly contracts.
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