Lenovo executive: Buy Nokia? LOL

Lenovo executive: Buy Nokia? LOL

Summary: An Lenovo executive genuinely thought the idea of his company buying Nokia was a "joke." Nokia left the room with its arms flailing and tears streaming down its face.

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Chinese PC maker Lenovo said "there's nothing ongoing" between the company and struggling phone maker Nokia, and quickly stomped on rumors that it would buy the Finnish company out.

Without pulling any punches, Gianfranco Lanci, who runs Lenovo's operations in Europe, Middle East and Africa, said: "This must be a joke," and quickly poured cold water on the speculation.

I'm not sure what's worse: another thought-to-be potential savior for the ailing phone maker, or the fact that Lenovo, a leader in its field, thought such an acquisition -- or Nokia -- was a joke. Zing.

It was never going to happen, let's be honest.

Lenovo, if you hadn't noticed, will likely become the world's top PC maker in this quarter, as its sales continue to soar through the roof at current market leader HP's expense. Dell's, which currently stands in third place, will likely remain there for the coming quarters.

The PC giant grew by 12 percent in the second-quarter, placing it it a hair's breadth away from the top-spot currently occupied by market leader, HP. Both HP and Dell continue to plummet in marketshare rankings. (At this rate, Lenovo could probably post a loss and report a small dip in market share and still grab the crown from HP as it crashes to the ground.)

Meanwhile, Nokia continues to shed jobs and push out lackluster devices and products as it burns through its cash reserves, currently pegging at around €4.2 billion ($5.17bn) as per last month's second-quarter earnings report, by around $700 million per quarter on keeping the company alive (and warm jackets for the cold Helsinki nights.) 

Nokia's shares rose by 11 percent by market close on Tuesday, as the company continues to look for a potential mass organ donor to the company's failing body.

Still, on the plus side, its shares rose to the highest point since mid-June, but continues to trade badly after dropping more than 70 percent over the past year.

Topics: Nokia, Lenovo, Tech Industry

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16 comments
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  • You do realize ...

    ... that Nokia's Lumia smartphone initial sales over the past several quarters, are better than the iPhone's?
    P. Douglas
    • RE: You do realize ... You do realize ...

      Don't bother. Zack is in a personal crusade of bashing RIM and Nokia who knows why. Those are struggling companies that are trying to get out of the ditch, but which are not assured of doing so. Thus, Zack may think it's a safe bet to constantly going after them so that if they fail, he can pat himself on the back as the visionary analyst. How pathetic.
      markbn
    • RE: You do realize ... You do realize ...

      Don't bother. Zack is in a personal crusade of bashing RIM and Nokia who knows why. Those are struggling companies that are trying to get out of the ditch, but which are not assured of doing so. Thus, Zack may think it's a safe bet to constantly going after them so that if they fail, he can pat himself on the back as the visionary analyst. How pathetic.
      markbn
    • And that means what, exactly?

      That's a cute talking point; I hope no one at Nokia strained anything thinking it up! But consider...

      When the iPhone was first announced, it had no apps, no ecosystem, no subsidies, no name recognition in the mobile phone space, and little carrier support; of course its sales didn't rocket upon first release.

      Why not compare to the iPhone 3G instead? of course that comparison might not be so favorable.
      Atlant
    • Yeah right

      Last quarter, Apple sold 28 million iPhones.

      During the same time, all the models of WP7 combined were only 2.1M.

      So explain how 2.1M (ignorantly assuming they were all Lumia) is better than 28M ??
      wackoae
  • This had never been a rumour. It is simply made up by big traders.

    This has never been a rumor. It is just made up today, by various media controlled by big trading banks, in order manipulate the stock downwards. As unreliabel media are these days. Wait until Nokia reveals it new WP8 phones. No rumour can ever dodge that ;)
    babbeloo
  • SEC said we knew there was no buyout

    Elop and the board personally buy over a million shares days before a buyout is announced? The SEC would've had em in their office in a split second. Rumors of any type of buyout is absurd.

    Thank you for the unbiased and informative article about Nokia, I really enjoyed it. Maybe your next article can include a healthy dose of sarcasm - you can use this as an example.
    RTRR
    • Not here

      Before you do this again, someone should probably warn you that Nokia is not a U.S. company. The SEC will be doing nothing about Elop and all his works and pomps.
      Robert Hahn
      • Illegal trading is a concern for Wall Street, and the U.S., and all

        international governments.

        If Nokia didn't have to respond to U.S. regulations, then it wouldn't be allowed to trade on Wall Street.
        adornoe
  • You should change your name to Zack the Hack,

    or find a job someplace else where your blogs ara a btter fit, as you're writting has taken a turn, and not for the better.


    First, he was laughing at the idea that Lenovo would buy something that, in his own words -

    "It would have been spending so much money buying something that is not really Lenovo's core line of business. I would think a more likely possibility would be some form of collaboration or cooperation between the two"

    Alot different then what you said happened.

    Nokia was never there, nor where there any discussions, yet you claim they were -'Nokia left the room with its arms flailing and tears running down it's eyes'

    You're becoming one of the dime-a-dozen hacks, Zack.

    Is this what you want to be remembered as?
    William Farrel
  • Lenovo executive: Buy Nokia? LOL

    You wrote an entire article based on a false rumor. This is the first time I heard anything about Lenovo buying Nokia. Nokia doesn't need Lenovo, they have a plan in place. Then when Microsoft Windows 8 comes onto the scene they will be just fine.
    Loverock Davidson-
    • You said that same thing . . .

      . . . when Windows Phone 7 was released. How did that workout?
      Wakemewhentrollsgone
      • Don't forget that, this is WP8, part of the whole new Windows 8 ecosystem,

        and, which already has millions of release candidate users worldwide. Those people are excited, and, since Windows is a worldwide franchise, WP8 will be a lot easier to sell than WP7, which wasn't designed to integrate into the whole Windows ecosystem, as nicely as WP8 is.
        adornoe
        • One point

          You're about as delusional as a Scot who thinks Whiskey is a good substitute for shampoo.

          If you think RC's are a reliable indicator of product success, then I guess Linux has taken over the world (given 8 million downloads of just ubuntu) and the around 90,000 per day Open Office downloads per Apache indicate happen.

          Mind you, the more mobile kit companies crash and burn the happier I am.
          ego.sum.stig
  • I don't know... but

    My NOK stock is up over 36% now.
    CriticalSection
    • But it's still in the toilet

      Having dropped by around 70% from last year. However, if for some reason you had bought some a few days ago you might be somewhat happy about now. But, for how long?
      ego.sum.stig