Nokia is too early to launch a tablet computer

[Guide] Nokia has no reason to dabble in the tablet market when smartphones are not yet stable. Tencent Science and Technology Tan S August 19 compiled recent news that mobile phone giant Nokia will launch its own tablet computer this September, the famous Investment information website Seekingalpha today published an investor Jacob Bu Steinberg (Jacob Steinberg) commentary on the matter. Steinberg believes it makes no sense for Nokia to dabble in the tablet market without a steady profit in the smartphone business. The following is the main content of the article. In the past few years, market watchers have thought that Nokia will launch its own tablet computer several times. Every time I say, "No, Nokia won't launch a tablet anytime soon because it doesn't make any sense." "However, Nokia seems to have finally conceded to Microsoft, and may soon launch a windows-based tablet." I don't think that's a good idea. I know I've been arguing about this for a year, but it really doesn't make sense for Nokia to launch a tablet computer before it makes a profit. Nokia should first make sure its handset business is fully profitable before considering launching a tablet, so that once the tablet business fails, it can still operate on its mobile business profits. Now that Nokia phones are not profitable, it makes no sense to launch new products. Microsoft's attempt to build its own tablet computer is far from successful. Now Microsoft seems to want to push the task to Nokia to minimise risk. Nokia should not bear the burden of Microsoft, unless Microsoft becomes a direct client of Nokia, just as Apple is a direct client of Foxconn, which has limited risk. Obviously, Microsoft will not sign such a contract with Nokia. In the mobile phone market, Nokia has a strong brand awareness, many consumers will give it a chance. However, Nokia has little visibility in the tablet market. A few years ago, Nokia tried to launch its own tablet computer, but it soon dismissed the idea because of weak market demand. I know that if Nokia were to develop a tablet now, its products would be much better than before. But even then, they are likely to be less profitable. Nowadays, the tablet market is getting more and more crowded, and most of the manufacturers are trying to gain balance. While Apple has lost some of its market share because of the introduction of cheap Android tablets, it has made most of the profits in the tablet market. The smartphone market is similar to the tablet market, but Nokia has a strong brand appeal in the smartphone market, which has no advantage in the tablet market. In addition, Nokia will launch the Tablet PC may run the Windows RT system, the system is not the world's most popular operating system. On smartphones, Nokia can add a powerful camera to distract consumers from their unpopular operating systems. But withThis is a difficult thing for a tablet computer. Will Nokia add a super powerful camera to its tablet? Even if it does, does it appeal to consumers enough? Developing a new product from scratch takes a lot of initial investment, and Nokia's financial position is not loose and it needs to tighten its belts. Nokia now has no capital to take risks. At the same time, Nokia cannot expect its NSN company (formerly Nokia Siemens NX, now called Nokia FX NX) to balance its balance sheet or make up for its failure in the smartphone market. Please note that I don't even talk about the specifics of the future Nokia tablet, because I don't think it's important at the moment. Launching a tablet in a crowded market is an adventure, and even if it goes well, it can only get a slim profit. Adding to the weaknesses of the Windows RT system may be a disaster for Nokia. If Nokia's mobile phone division is highly profitable and it has extra cash to develop projects that might lose money, I might agree with Nokia's idea of producing a tablet, but that's far from it. Nokia's equipment and services division had a profit margin of 1.2% in the previous quarter, while its operating margin was 1.5% per cent in the first quarter. In addition, Nokia's Equipment and services Division's operating margin for non-IAS operations in the first quarter of this year was 0.1%, and the second quarter was 1.2%. Keep in mind that these figures include royalties from more than 40 manufacturers around the world paying Nokia. By contrast, Apple's operating profit margins of two quarters were as high as 26% and 28%. I'm not saying that Nokia should get a high profit like Apple. But I think Nokia should be involved in other risky projects at more than 10% per cent of operating margins. At present, Nokia should focus on the existing mobile phone business and mobile map business, rather than jumping to new areas. I still own Nokia shares, but if the company announces its own tablet, I might throw it away.