NSN evaluating sale of India manufacturing plant
Nokia "may need a new partner or investor to make NSN work long term": analyst
Nokia Siemens Networks, which is being taken over fully by Nokia, is evaluating sale of some manufacturing plants - in Finland, China and India - to raise about Euro600m and outsource production, according to a report in Rethink Wireless website.
"Although NSN is further along with its massive reorganization program than rival Alcatel-Lucent, it still has work to do. For instance, internal sources say it is evaluating the sale of more manufacturing plants - in Finland, China and India - to raise about Euro600m and outsource production. Cost cutting activities so far led to a trebling of operating profit last year" (Rethink Wireless)
Nokia will pay about $2.2 billion to buy Siemens out of the joint venture. NSN has started to generate cash and to stabilize its finances by focusing on mobile broadband. It "could even provide a more viable future for Nokia than the smartphone business - the infrastructure business is tough, but there are still opportunities to lead and add value in emerging areas like software defined networking, while the Lumia Windows Phone strategy has limited opportunity to make a dent on the Android/iOS axis", writes Rethink Wireless.
Pierre Ferragu, an analyst at Sanford Bernstein, told Bloomberg: "With this transaction, Nokia buys itself a future, whatever happens in smartphones and featurephones"
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