Tech Business Roundup: Nokia’s HUGE News, Apple MAKES UP with Time
Nokia (NYSE:NOK) news goes viral on Thursday, and little of it is particularly encouraging for the firm. The second quarter outlook is decreased; the company reports plans to eliminate an additional 10,000 positions, which will come to just under a total of 40,000 under CEO Stephen Elop; and several facilities will be shut down, all of which are supposed to restore profitable growth. As for the reduced outlook, starting in the current second quarter, Nokia forecasts restructuring related cash outflows of ~€650 million this year, and €600 million in 2013, noting that “competitive industry dynamics are negatively affecting the Smart Devices business unit to a somewhat greater extent than previously expected.” Comments taken from a conference call reveal that the firm would concentrate its resources on major markets, and that it’s collaborating with Microsoft (NASDAQ:MSFT) in the development cheaper Windows Phone devices. Meanwhile, the company divests Vertu luxury phone unit to Swedish private equity firm EQT Partners for an undisclosed sum, rumored to be around $250 million. In reaction to all this, Nokia shares took a major fall, dragging those of Research In Motion (NASDAQ:RIMM) and power amplifier supplier RF Micro Devices (NASDAQ:RFMD) along for the downwards ride.
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Apple’s (NASDAQ:AAPL) dispute with Time Inc. (NYSE:TWX) regarding the sale of iPad subscriptions for the latter’s magazines, has been resolved. Users of iPad may soon subscribe to 20 titles, including Sports Illustrated and People. The sticking point was that Apple insisted on taking 30 percent of the subscription fees, and Time responded by selling only individual issues with the iPad. Some publishers had thought that a credible default might be Amazon (NASDAQ:AMZN), but sales of Kindle Fire are lackluster, at best.
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