Analysis says Nokia is too expensive to burn or faces bankruptcy

Analysis said that the Nokia burning money rate is too high or face bankruptcy analysis of the Nokia burning money rate is too high or face bankruptcy U.S. science and Technology blog BusinessInsider editor, well-known internet analyst Henry Bloggit (Henryblodget), wrote in Thursday, The decline in Nokia's first-quarter financial performance was not the worst, and, worse, the company's high burning rate, which could risk bankruptcy. The following is the full text of the article: Nokia's first-quarter results were poor, in part because the company's latest iphone killer, Lumia handsets, has been selling poorly. It's a bad thing, but worse is still behind. Nokia is burning money at an incredible rate and is about to plunge into a cash-depleted predicament. For now, Nokia's balance sheet still has 4.9 billion euros ($ 6.4 billion trillion) of net cash (ie, cash minus debt) and 9.8 billion euros (about $12.9 billion trillion) in total cash, a small number. But over the past year, Nokia has turned from making money to losing money. Nokia has spent a total of 1.5 billion euros (about 2 billion dollars) in the past year, and it was surprising that it burned 700 million euros (about $900 million trillion) in the last quarter alone. In the first quarter, Nokia's net cash will be depleted in 7 quarters, or less than two years, and the total cash will be depleted within 4 years. Nokia's cash position has become so dire that company CEO Elop Elop has started talking about the need to keep cash. The problem arises when the company starts talking about the need to keep cash when it comes to a company that needs to take a proactive attitude to any kind of salvation. When he took over Nokia two years ago, he issued a famous memo comparing Nokia's situation to a burning oil rig in the sea. He then pointed out that if no action was taken, then Nokia would face fall, and at the same time there could be chance from the crude drilling platform as it dived into the swirling ocean. So Elop really jumped and he staked his bets on Microsoft WindowsMobile, which was the effort of Microsoft to overtake other rivals in the mobile market. Jumping into the sea from a burning oil rig is a crazy idea because its survival rate is rather low. Now it looks like Nokia is drowning.