Bloomberg has reported this weekend that Nokia has lost so much value over the past few years that its stock is now worth 50 percent less than if the company was sold and broken up.
At its peak, Nokia was worth $300 billion before Apple and Google introduced their smartphone operating systems but is now worth just over $25 billion.
If you were to separate its mobile, infrastructure equipment, mapping software and accounting businesses, Bloomberg says the company would be worth $39 billion, based on current comparable valuations of patents.
There has been speculation that Microsoft is willing to buy Nokia’s mobile phone business, but Nokia has denied the rumors.
Nokia’s stock currently trades at $6.65 per share, the lowest it has since 1998.
Result for: mobile phone business
According to a WSJ report, Dell may be preparing to move into the mobile phone business; as soon as next month.
The report says a group of engineers have been working on a phone based on the Android operating system for over a year now, and on a phone based on Windows Mobile for over six months.
Dell will be focusing on the increasingly crowded smartphone market, currently led by Apple, RIM and Palm and their two devices will likely be a touchscreen phone and one with a slide out QWERTY keyboard.
A Dell spokesperson added “We haven’t committed to anything,” and can still drop all plans for the phone.
Michael Dell, CEO of the company, has been rumored to be interested in creating smartphones since at least last year but so far nothing has come of the efforts.
Result for: mobile phone business
Research firm Strategy Analytics reported on Friday that Samsung has become the largest mobile phone vendor in the United States based on third quarter results. Despite global economic woes, the mobile phone market in the United States actually grew 6.2% from the same quarter of 2007, adding up to 47.4 million handsets in the quarter. South Korean consumer electronics vendor Samsung nabbed the largest share of the market at 22.4%.
Following Samsung (but still behind Motorola) was its rival also from South Korea, LG Electronics, which commanded an impressive 20.5% share of the U.S. market during the third quarter. In the previous year, Motorola had the top spot in the market with a 32.7% share, which fell dramatically to 21.1% in the same period of this year.
Motorola has warned that its fourth quarter results will also miss expectations, and that its mobile phone business will continue to weaken during the first half of 2009. Nokia took 8.4% of the U.S. market during the quarter which was up from levels seen earlier this year. Regardless, Nokia sells more handsets than Samsung, Motorola and LG Electronics combined globally, with a staggering 38% global market share.
