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October 6, 2011

Beginning of The End of The Nokia Story

There seems to be no end to Nokia 's  Job Cuts. The company will also close its Location and Commerce operations in Bonn, Germany, and Malvern, Penn., in the U.S. It will “review the long-term role” of its manufacturing operations in Salo, Finland, Komarom, Hungary, and Reynosa, Mexico, which will affect personnel in 2012.

The final tally is brutal: 3,500 will lose their job by the end of 2012, in addition to the 7,000 job cuts (3,000 of which are outsourced) announced in April. Additionally, Nokia will announce the possible effect of the consolidation of its L&C operations on personnel in the first quarter of 2012.

Earlier  this year, the company laid off 7,000 workers in the wake of its decision to adopt Windows Phone 7 for its smartphones instead of its own Symbian OS, saw its market share drop precipitously.

Until 200, Nokia, was the world's largest handset-maker—and raked in much of the profits. But everything changed when Apple introduced the iPhone in 2007, the first smartphone that deserved the name. Today Nokia still ships a third of all handsets, but Apple pulls in more than half of the profits—despite having a market share of barely 4%. Analysts doubt that this gap is sustainable: competitors will continue to go after Apple and squeeze its margin. What is more, fast-growing Chinese handset-makers, notably Huawei and ZTE, will make it into these charts soon. As for Nokia, all bets are off. Some say it will regain some of its old strength. Others predict that its market share will plunge as much as its profits