Is The Worst Over For Nokia?

Nokia (NOK) shares have dropped around 50% in the last year as the mobile phone industry took a beating from the economy — shipments and margins both squeezed. But is the worst over?

In a note today, RBC analyst Mark Sue says operating margins “may have bottomed” at Nokia’s mobile phone division. He now thinks Nokia will report 90 million unit shipments this quarter, up from his previous estimate of 87 million. “We’re not calling for a full recovery and if anything global units may decline by -15% this year, yet the rate of decline appears to be slowing,” he said.

That’s good news. But there’s still concerns about Nokia Siemens Networks, its wireless gear business. And we still haven’t seen any consumer smartphones from Nokia (NOK) that will be able to credibly compete with Apple’s (AAPL) iPhone — which is only getting better.

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