Apple stocks fall in wake of Nokia deal in China.

It is a conflicting tale of two major companies, one was once the biggest manufacturer of mobile phones in the world whilst one was on the verge of bankruptcy. Fast forward in time and the roles, whilst not completely reversed are almost exactly the polar opposite.

Apple, who more than once have been close to going bust are now so successful they could stop trading for a number of years and still be solvent whilst Nokia are on a slump so deep it makes the UK economy look good.

For Nokia pre November, sales had hit rock bottom and their share price had been downgraded to junk status whilst Apple had just released the iPhone 5 and the new iPads were on the way.

Things could be about to change however.

Yesterday a deal was agreed betwee Nokia and China Mobile, the largest carrier in China for the sale of the Lumia 920T, a variant of the Windows Phone powered flagship handset. Whilst Apple is carried by China Telecom and China Unicom they were hoping to strike a deal with China Mobile too. This deal could now be delayed until after February.

This has caused ripples in the stock market as Apple shares dropped some 6.4% in New York, their biggest drop since 2008 which wiped $34.9bn from the company value – the biggest drop since 1988.

Nokia shares meanwhile rose 9.7% on the Helsinki stock exchange.

Whilst the news is good for Nokia, lets be under no illusions that there is still a massive hill to climb for them on the road to recovery whilst Apple has a very long way to go before they could be considered to be anywhere close to trouble.

source: Bloomberg