Is the lowest operating margin forcing Nokia Siemens to axe 17,000 jobs?

[ltecity]

Nokia Siemens Networks has the lowest operating margin among the leading telecom equipment providers.
The operating margin of Nokia, the handset major and the 50 percent owner of Nokia Siemens Networks, in Q3 2011 was 2.4 percent against 11.3 percent in Q3 2010 and -4.5 percent in Q2 2011.

The operating margin of Nokia Siemens Networks was a drain on the profitability of Nokia that reports revenues from network business, handset and NAVTEQ.

The operating margin of E*******, the main rival of Nokia Siemens Networks, stood at a healthy 11.3 percent in Q3 2011 compared with 13 percent in Q3 2010 and 9.2 percent in Q2 2011. Operating margin of E*******'s network business was 13 percent in Q3 2011 against 17 percent in Q3 2010. (please see the chart below).

OPERATING MARGIN OF MAJOR TELECOM EQUIPMENT VENDORS

Q3 2011 Q3 2010


Nokia Siemens Networks -3.3 -9.6

E******* 11 13

E*******'s network business 13 17

Alcatel-Lucent 4.6

[rcon]

http://www.networkworld.com/news/201...00-253436.html

[D33T0X]

And the cash injection in NSN has come to an end: written in cellular news today. It's sad seeing them going down (especially the ex Siemens bit).

[punto]

@ friend kalpeshsantoki ,
what would be operating margin figures for ZTE and Huawei - interesting data , as well

[byja]

It's negative, of course, cause that's their business plan - dumping prices. I believe one year ago Huawei's debt standed at 2 bil USD, but that's debt to chinese bank(s), so no pressure on that side.

[rcon]

At least they can now concentrate on making more galoshes and tyres.