...Goldman said Nokia's risk-reward profile remained uncompelling (relative to the broker's bullish view on the wider European technology sector) due to its continued loss of market share in the smart-phone segment, combined with a lack of convincing new high-end models scheduled for the next 12 months. In a damming note to investors, a Goldman analyst wrote that, having experienced the Nokia N97, the company needed to start almost from scratch to create an attractive user experience, rather than following the complex menu structure of Series 60. "But this revamp is unlikely to be achieved rapidly...
Goldman also believed that Nokia's 55 per cent market share in the mid-end smart-phone segment looked "unsustainably high" given that Nokia's brand image will ultimately suffer from its loss of leadership at the high end...
Piling on the gloom, Goldman maintained that the key swing factor for Nokia's earnings in the mid term was the company's ability to execute its software/solutions strategy... Unfortunately Nokia's track record in that area over the past eight years has been poor...
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