Speculation grows that former Alaska governor will enter 2012 presidential race, as teasing tactics eclipse political rivals Sarah Palin has arrived in Philadelphia on day three of a mystery bus tour that is swamping US media coverage of the Republican race for the White House, leaving her rivals struggling to win attention. Palin, who began her road trip in Washington, is refusing to provide an itinerary for the media, in what is being interpreted as payback for the hostility she faced in the 2008 election. “It’s not really an intention to play cat and mouse,” she said. But the tactic has worked spectacularly to her advantage, with reporters gleefully turning her tour into a chase and guessing game about her next stop. Reporters are enjoying the novelty so much that there is even a Twitter hashtag, #wheressarah, logging sightings and speculating on her next venue. When reporters do catch her, the inevitable question is whether she intends to join other Republicans in seeking the nomination to take on Barack Obama in 2012. She insists she has not made up her mind. “I don’t know, I honestly don’t know,” she says. The 2008 Republican vice-presidential candidate may be engaged in an elaborate tease but, after a few months in which she largely dropped out of public view, the bus tour has renewed speculation that she is contemplating joining the contest. She even admitted to reporters she had been thinking about what kind of campaign she might run, saying it would be non-traditional and unconventional – a bit like her bus trip. She spent Tuesday at a hotel near the site of the battle of Gettysburg, in Maryland. Journalists gathered in the morning outside her bus but she had slipped out earlier to view the battlefield in peace. The media then followed her bus to Philadelphia, where she visited the sites associated with the 1776 declaration of independence. Her trip, accompanied by husband Todd and the rest of the family, has included the capital, George Washington’s home at Mount Vernon and Fort McHenry in Baltimore, where the British laid siege in 1814. She will almost certainly go to Boston, scene of the Tea Party. But there is speculation, too, that she will go to New Hampshire, where the second round of the Republican nomination contest will be held, a sign that political ambition rather than a historical lesson is at the forefront of her mind. She is also planning to visit Iowa, where the first round will be held and where she is to attend the premiere of a documentary about her time as Alaska’s governor. Replying to reporters’ questions about whether she will stand, she said: “It’s still a matter of looking at the field and considering much. There truly is a lot to consider before you throw yourself out there in the name of service to the public because it is so all-consuming.” She has given only one interview, to Fox’s Greta Van Susteren, the only reporter allowed on the bus. Asked why she was not providing reporters with an itinerary, Palin, who has an intense dislike of much of the media, said: “They want, kind of, the conventional idea of, ‘we want a schedule, we want to follow you, we want you to bring us along with you’. I want them to have to do a little bit of work on a tour like this, and that would include not necessarily telling them beforehand where every stop is going to be. The media can figure out where we’re going if they do their investigative work.” The game partly explains the renewed media interest in Palin. But the attention also reflects the lack of excitement about the present Republican field. Mitt Romney, the former governor of Massachusetts and Republican frontrunner, is due to announce his candidacy formally in New Hampshire on Thursday. A Gallup poll of Republicans and Republican-leaning independents published on Tuesday put Romney on 17%, with Palin in second place on 15%, followed by Ron Paul on 10%, Newt Gingrich on 9%, Herman Cain on 8%, Tim Pawlenty on 6%, Michele Bachmann on 5%, and Jon Huntsman, Rick Santorum and Gary Johnson all on 2%. These candidates have had a hard time getting on air and when they do they are almost inevitably asked about Palin. Bachmann, who is to declare within the month, was invited on to ABC and asked how she differed from Palin. Bachmann deflected the question, saying they were friends. Pawlenty was interviewed at the weekend and showed signs of irritation when asked about Palin. Palin described the field as quite strong but predicted “there will be more strong candidates jumping in” and wondered about the Texas governor, Rick Perry, and others coming in. She added: “The field isn’t set yet, not by a long shot.” Sarah Palin US elections 2012 Republicans United States US politics Barack Obama Ewen MacAskill guardian.co.uk
Continue reading …Click here to view this media The budget proposal put forth by Paul Ryan is a vicious and cruel all-out attack on everyone under the age of 55, but the cuts to Medicare and Medicaid that the Ryan plan propose would be felt in a particularly acute way by women, who make up more than half of the beneficiaries of both programs, and women retire closer to the poverty line than men do. Women who are alone, who either never married or who are divorced or widowed and never remarried are particularly vulnerable. The attack on Medicare is one that rallies everyone. Not everyone over 55 is a psychopath who couldn’t care less so long as they get theirs. I honestly think that Paul Ryan was counting on people over 55, the largest republican voting bloc out there, not giving a damn so long as they got to keep theirs. I think he is so steeped in Randianism that he was actually taken aback by the pushback he got from people who actually care about their kids and their younger siblings and everyone else who paid in all their adult lives and stand to get rogered roundly if Ryan’s scheme sees the light of day. The CBO, the non-partisan number-crunching office of Congress, estimates that the Ryan scheme would double the out-of-pocket healthcare expenses of seniors. The estimated annual cost of $12,000 for medical coverage would leave grandma eating catfood in the homeless shelter. On average, female seniors have an annual income of only $14,000. Of that annual income, about $12,000 comes from Social Security . (Could you live on $2000 per year?) Here is the bottom line: Ryan’s plan would amount to transferring the entire monthly Social Security benefit for female seniors to private health insurance companies. I can’t possibly sum it up any more succinctly than Senator Barbara Boxer did when she said “This is a sick proposal,” during a press conference with other Senate Democrats last week. As bad as that is, the assault on Medicaid is even worse. Women comprise about 70% of all Medicaid beneficiaries, and while Medicaid has been demonized and branded as welfare, as “free” healthcare for “those people.” The right-wing social conservatives have been very successful in projecting the face of Medicaid as an inner city “welfare mother” with several children, presumably with different fathers. That is the implication, anyway, when GOP politicians dismiss Medicaid as a progenitor of promiscuity . But in reality, most Medicaid recipients are elderly people in nursing homes, and idea of making Medicaid a block grant that states could use to deliver healthcare as they saw fit would only make matters worse. States have already mucked up their end of the joint federal-state program, and block grants would make matters far worse . The CBO estimates that Republicans’ proposed plan to block-grant Medicaid would reduce federal program expenditures by 35 percent by 2022 and by 49 percent in 2030 relative to current law. In return, states would have greater flexibility to restructure Medicaid benefits. How governors would actually use this flexibility is another matter. Medicaid is flexible right now. The Center on Budget and Policy Priorities reports that about 60 percent of state Medicaid spending consists of expenditures to cover people or to reimburse services that are not required under federal law. Given Medicaid’s low per-person cost and its relatively restrained projected cost growth, there’s little room to comfortably cut. Safety-net services are already shoestring operations. Under-funded and stressed, they have many shortcomings. There is no way to meet the above spending reduction targets without shifting costs and risks onto the states, covering markedly fewer people and services, or further underpaying Medicaid providers. No one can firmly say how states would respond to the reduced federal support. I fear that’s precisely the point. Block grants provide both states and the federal government with useful political cover to cut important benefits. If a particular state eliminates Medicaid home care services or by dropping the working poor from coverage, Congressional Republicans can say: “Don’t blame us. That’s what this state chose to do.” Meanwhile governors can say, with equal justification: “Don’t blame us. We’re doing the best we can, given limited federal resources.” I wonder who the care of those elderly and disabled people would fall to if Medicaid went away? I can tell you who it would fall to — it would fall to women, mostly in their forties and fifties, women would have to leave the workplace to care for their elderly parents or disabled siblings or children, high-need individuals whose nursing home care would no longer be paid for. This in turn would reduce the amount of benefit those women would be eligible for upon retirement, thereby assuring the transfer of every single penny of the retirement benefits women worked all their adult lives for, to private companies. And so it goes. Yes, there is a war on women, and it isn’t just being waged against those in their childbearing years. They really are out to get us all. And no, I’m not paranoid. It’s only paranoia when the threat is imaginary, and this one is not; it is quite real. This post originally appeared at Show Me Progress and is part of a series I am writing as a blogging fellow for the Strengthen Social Security Campaign , a coalition of more than 270 national and state organizations dedicated to preserving and strengthening Social Security.
Continue reading …Activists call for investigation into abuse after Egyptian general admits tests were conducted and defends practice Egyptian activists will hold an online protest on Wednesday to press the military leadership to investigate soldiers who abused pro-democracy demonstrators, including women who were detained and forced to take “virginity tests”. The interim authority, formed after Hosni Mubarak was ousted in February, has come in for increasing criticism from the youth movement for the slow pace of its reforms, and intolerance of dissent. The abuse of the women, which was confirmed by a senior army official, has caused particular anger, and prompted a storm of protest on the internet. The Supreme Council of the Armed Forces had previously denied claims by Amnesty International that 18 women detained in March were subjected to virginity checks and threatened with prostitution charges. But an Egyptian general told an American television network on Monday that tests were in fact conducted, and defended the practice. “The girls who were detained were not like your daughter or mine,” the general, who requested anonymity, told CNN . “These were girls who had camped out in tents with male protesters in Tahrir Square, and we found … molotov cocktails and [drugs].” He said the tests were conducted so that the women would not be able to claim that they had been sexually abused while in custody. “We didn’t want them to say we had sexually assaulted or raped them, so we wanted to prove that they weren’t virgins in the first place,” the general said. “None of them were [virgins].” Amnesty condemned the general’s comments and called for a full investigation. “This general’s implication that only virgins can be victims of rape is a long-discredited sexist attitude and legal absurdity,” a statement said. “When determining a case of rape, it is irrelevant whether or not the victim is a virgin. The army must immediately instruct security forces and soldiers that such ‘tests’ are banned.” The women were detained on 9 March, nearly a month after the revolution that forced Mubarak from power, when soldiers cleared Tahrir Square after men in civilian clothes attacked protesters. One of the female victims, Salwa Hosseini, 20, told Amnesty that she and the other women were forced to remove their clothes before being strip-searched by a female guard. Male soldiers looked into the room, and took pictures, she said. The women were also beaten and given electric shocks, Amnesty reported. The growing dissatisfaction with the interim government is increasingly clear. While the military council has pledged to organise elections this year and hand over to a civilian government, tens of thousands of people appeared in Tahrir Square last week to demand faster reforms. Youth activists have said that additional, online protests are necessary because Egypt’s mainstream media treads too softly around the military, a taboo carried over from Mubarak’s reign. The new rulers have shown themselves to be thin-skinned, with a military prosecutor summoning a prominent blogger and a television journalist after they criticised the army during a talkshow. Three other journalists were also called in for questioning on Tuesday. They were all released without charge. In a statement , the Arabic Network for Human Rights Information condemned the military council for “dispersing fear” among the media and the judiciary. The group said that three judges were also under investigation for appearing on talkshows where they criticised the use of military courts for civilian cases and called for judicial reform. Egypt Arab and Middle East unrest Middle East Africa Xan Rice guardian.co.uk
Continue reading …A review of published evidence suggests there may be some risk of cancer from using a mobile phone Radiation from mobile phones has been classified as a possible cancer risk by the World Health Organisation after a major review of the effects of electromagnetic waves on human health. The declaration was based on evidence in published studies that intensive use of mobile phones might lead to an increased risk of glioma, a malignant form of brain cancer. The conclusion by the WHO’s International Agency for Research on Cancer (IARC) applies to radio-frequency electromagnetic radiation in general, though most research in the area has centred on wireless phones. The findings are the culmination of an IARC meeting during which 31 scientists from 14 countries assessed hundreds of published studies into the potential cancer risks posed by electromagnetic fields. The UK was represented by Simon Mann from the Health Protection Agency’s Centre for Radiation, Chemicals and Environmental Hazards in Oxfordshire . Jonathan Samet, a scientist at the University of Southern California , who chaired the group, said: “The conclusion means that there could be some risk, and therefore we need to keep a close watch for a link between cellphones and cancer.” In designating radio-frequency fields as “possibly carcinogenic”, the WHO has put them on a par with around 240 other agents for which evidence of harm is uncertain, including low-level magnetic fields, talcum powder and working in a dry cleaners. The report found no clear mechanism for the waves to cause brain tumours. Radiation from mobile phones is too weak to cause cancer by breaking DNA, leading scientists to suspect other, more indirect routes. “We found some threads of evidence telling us how cancers might occur but there are acknowledged gaps and uncertainties,” Samet said. Christopher Wild, director of the IARC , said that in view of the potential implications for public health, there should be more research on long-term, heavy use of mobile phones. “Pending the availability of such information, it is important to take pragmatic measures to reduce exposure such as hands-free devices or texting,” he said. There are around 5bn mobile phone subscriptions globally, according to the International Telecommunication Union , a UN agency for information and communication technologies. The IARC group reviewed research investigating potential health risks from electromagnetic fields associated with technologies such as radio, television, wireless communications and mobile phones. The committee decided the fields were possibly carcinogenic to humans, a finding that will feed through to national health agencies in support of their efforts to minimise exposure to cancer-causing factors. The IARC has evaluated nearly 950 chemicals, physical and biological agents, occupational exposures and lifestyle factors where there is either evidence or suspicion that they may cause cancer. The report on radio-frequency electromagnetic radiation comes a year after the WHO published its much-delayed Interphone study , which found no solid evidence that mobile phones increase the risk of brain tumours, but pointed to a slightly higher risk among those who used mobile phones the most . The report was held up for several years because scientists failed to agree on its findings and whether to issue a warning about excessive use. Exposure from a mobile phone base station is typically much lower than from a handset held to the ear, but concerns over the possible health effects of electromagnetic waves have extended to base stations and wireless computer networks, particularly in relation to schools. According to the British Educational Communications and Technology Agency , half of all primary schools and 82% of secondary schools make use of wireless computer networks. Wi-fi equipment is restricted to a maximum output of 100 milliwatts in Europe at the most popular frequency of 2.4 gigahertz. At that level, exposure to radiowaves should not exceed guideline levels drawn up by the International Commission on Non-Ionising Radiation and adopted in the UK. A Health Protection Agency study led by Mann in 2009 found that exposure to radiowaves from wi-fi equipment was well within these guideline levels. Cancer Medical research Physics Mobile phones Telecoms Cancer Health Ian Sample guardian.co.uk
Continue reading …• Uefa president Platini says he has ‘only one tongue’ • Scotland only nation backing FA’s request to delay election Michel Platini has ruled out standing for the Fifa presidency until 2015 because he has “only one tongue”. If in the unlikely event that the Football Association’s initiative to gain the support of 153 other federations succeeds in delaying the Fifa presidential election – so far it has the public backing only of Scotland – succeeds, a rival candidate would be sought. However, when the Guardian asked the Uefa president if he intends to rescue Fifa from its ongoing scandals Platini responded by saying: “Scandals? I only know what I see in the newspapers and you work for the newspapers. You know more than me. “I have been elected Uefa president. I have four more years. Can I do two jobs? I have only one tongue.” Platini is clearly not prepared to mount a coup, and stands in line for what is likely to be an orderly transition into the role in 2015, when his Uefa mandate expires. The three-time European footballer of the year has expressed his ambitions to that effect, saying: “Fifa is like the International Olympic Committee was some years ago. I think we are at the end of a system based on politics. I think it will finish in the next few years and we will have people from the sport. I think Fifa has to come back to football.” The Guardian understands that the 21 surviving executive-committee members of Fifa were unanimous in expressing their support for the incumbent president, Sepp Blatter, at its meeting at Fifa House yesterday. Fifa Michel Platini Sepp Blatter Football politics Matt Scott guardian.co.uk
Continue reading …Shahzad’s body was discovered less than two days after he was allegedly abducted by ISI, Pakistan’s intelligence service A prominent Pakistani journalist has been found dead on the roadside outside Islamabad, less than two days after he was allegedly abducted by the country’s powerful military intelligence service. Saleem Shahzad disappeared on his way to a television interview on Sunday evening. Human Rights Watch said it learned he been abducted by the Inter-Services Intelligence directorate (ISI). Shahzad’s body was found six miles from his car in a small hamlet on the edge of Islamabad. Local media reported that he had torture marks on his face and a gunshot wound to the stomach. “This killing bears all the hallmarks of previous killings perpetrated by Pakistani intelligence agencies,” said Ali Dayan Hasan of Human Rights Watch, noting that Shahzad had previously warned that his life was in danger from the ISI. Hasan called for a “transparent investigation and court proceedings”. Other journalists reacted angrily, directly accusing the ISI of responsibility. “Any journalist here who doesn’t believe that it’s our intelligence agencies?” tweeted Mohammed Hanif, a bestselling author and BBC correspondent. Shahzad, the Pakistan correspondent for the Hong Kong-based news service Asia Times Online, vanished two days after publishing a story alleging negotiations between Pakistan military officials and al-Qaida . The story claimed that al-Qaida attacked the Mehran naval base in Karachi on 22 May in retaliation for the arrest of two naval officials with militant links. Al-Qaida had been secretly pressing the military to release the men, Shahzad said. Pakistani security forces battled for 17 hours to contain the assault, during which at least four heavily armed men slipped into the base, blew up two American-built surveillance planes and killed 10 soldiers. On Tuesday Pakistani media reported that military intelligence had picked up a retired navy commando and his brother in Lahore in connection with the raid. The detained men, who allegedly have militant links, were previously questioned in connection to an earlier militant assault. Shahzad was abducted from central Islamabad on Sunday evening as he travelled to the studios of Dunya television to discuss his report on the naval base attack. The following day, after being alerted by Shahzad’s wife, Hasan said he had been informed through “reliable interlocutors” that Shahzad was being held by the ISI. Last October Shahzad sent Human Rights Watch an email saying he was afraid he would be killed by the ISI, Hasan claimed. In the email, intended to be released in the event of his death, Shahzad said he had been summoned to ISI headquarters in Islamabad to discuss an article about Mullah Brader, a Taliban commander captured in Pakistan with American help months earlier. The two ISI officials Shahzad said were present at the meeting, Rear Admiral Adnan Nawaz and Commodore Khalid Pervaiz, were both naval officers. Last week Pervaiz was made commander of the Karachi naval base that was attacked. “We believed [Shahzad's] claim that he was being threatened by the ISI is credible, and any investigation into his murder has to factor this in,” Hasan said. Cricketer-turned-politician Imran Khan called for a government inquiry into the “heinous crime”, but avoided mention of the ISI, focusing blame on the “servile policies [of] a corrupt and inept government”. As a reporter, Shahzad was known for delving deep into the murky underworld of Islamist militancy. He had interviewed some of the most notorious leaders including Sirajuddin Haqqani, a major player in the Taliban insurgency in Afghanistan, and Ilyas Kashmiri, a Pakistani militant who works for al-Qaida. His new book, Inside Al-Qaeda and the Taliban: Beyond Bin Laden and 9/11, had just been published. Pakistan is the world’s most dangerous country for journalists, according to Reporters without Borders, which says that 16 journalists have been killed in the past 14 months. Last September Umar Cheema, another investigative reporter, was abducted from Islamabad for six hours and tortured before being released. He said he suspected that his kidnappers belonged to the ISI. Pakistan Inter-Services Intelligence (ISI) Press freedom Declan Walsh guardian.co.uk
Continue reading …Ex-SAS soldiers and private security firm employees passing information to Nato attack helicopters, sources tell Guardian Former SAS soldiers and other western employees of private security companies are helping Nato identify targets in the Libyan port city of Misrata, the scene of heavy fighting between Gaddafi’s forces and rebels, well-placed sources have told the Guardian. Special forces veterans are passing details of the locations and movements of Muammar Gaddafi’s forces to the Naples headquarters of Lieutenant-General Charles Bouchard, Canadian commander of Nato forces involved in the military operations, sources said. The targets are then verified by spy planes and US Predator drones. “One piece of human intelligence is not enough”, a source said. The former soldiers are there with the blessing of Britain, France and other Nato countries, which have supplied them with communications equipment. They are likely to be providing information for the pilots of British and French attack helicopters who are expected to start firing at targets in and around Misrata later this week. Four Apache helicopters are on board HMS Ocean, which is now approaching Libyan waters. Twelve French Tiger helicopters are on board the amphibious assault ship Tonnere, which is understood to be already within striking distance of the Libyan coast. The revelations about the role of the rebels’ advisers follow the filming of armed westerners on the Misrata frontline with rebel fighters. A group of six westerners were visible in a report by al-Jazeera from Dafniya, described as the westernmost point of the rebel lines in the city. Five of the men were armed, wearing sand-coloured clothes, baseball caps and cotton Arab scarves. The sixth, who seemed to be in charge, carried no visible weapon and wore a pink short-sleeved shirt. The group was seen talking to rebels and quickly leaving after they realised they were being filmed. The Ministry of Defence insisted it had no combat forces on the ground in Libya. The only MoD personnel were in Benghazi, it added, referring to the team of about 10 military advisers and mentors the UK has sent there. William Hague, the foreign secretary, described the advisers as “experienced military officers”, and said they would advise the rebels on intelligence-gathering, logistics and communications. Senior British defence sources revealed in April that they were urging Arab countries to train the Libyan rebels in order to strengthen their position on the battlefield. The sources said they were looking at hiring private security companies, many of which employ former SAS soldiers, to help the rebels. These private soldiers are reported to be paid by Arab countries, notably Qatar. British officials said they were not being paid by the UK government. Those countries in favour of the initial decision to impose a no-fly-zone over Libya and hostile to Gaddafi would be strongly opposed to any direct – or official – link between western advisers and Nato commanders. They are being kept at arm’s length while their role is privately welcomed. A Reuters photographer in Misrata said there was heavy fighting in the suburb of Dafniyah, in the west of the city, where the front line is now located. Speaking from a field hospital near the front line, she said 14 rebel fighters had been injured on Tuesday, one of them seriously. “Gaddafi’s forces are firing Grad rockets,” she said. “The rebels tried to advance, but Gaddafi’s forces pushed them back.” Rebel fighters, out of their familiar urban battleground and now in open ground, were being outgunned, one of their spokesmen said. “The situation is getting more difficult for the revolutionaries because fighting is going on in open places. They do not have the same heavy weapons as the [pro-Gaddafi] brigades,” their spokesman, Abdelsalam, said from Misrata. Major-General John Lorimer, the MoD’s chief military spokesman, said RAF Tornado and Typhoon aircraft over the past few days destroyed a main battle tank near Jadu and attacked a multiple rocket launcher and support vehicles south of Zlitan. On Monday, further RAF patrols near Zlitan located five heavy transporters carrying main battle tanks; all were destroyed or severely damaged, he said. Libya Military Defence policy Middle East Africa Richard Norton-Taylor guardian.co.uk
Continue reading …Finnish firm scraps full-year forecasts and says it may make no profit on phone sales in quarter to end of June Shares in the Finnish phone maker Nokia plunged by 15% on Tuesday as the company warned that it may make no profit on phone sales in the quarter to the end of June, and that overall phone sales will be “substantially below” its earlier forecast of €6.1bn to €6.6bn. The company said that for the period from April to June, operating margins will be “substantially below its previously expected range of 6% to 9% … primarily due to lower than previously expected net sales”. It also scrapped full-year forecasts, saying it was no longer “appropriate to provide annual targets for 2011″. Though it is still the biggest maker by volume of both handsets and smartphones, selling about 100m and 24m respectively per quarter, Nokia has been buffeted at the high end by Apple’s iPhone and smartphones using Google’s Android operating system, while at the low end it faces challenges from “white box” manufacturers from China that can undercut it on price for standard mobile handsets. That forced the company to admit that its operating margins for handsets this quarter “could be around breakeven”. In the second quarter of 2010 Nokia’s mobile phone business made €643m profit on revenues of €6.8bn, and in the first quarter of 2011 recorded €690m profit on €7.1bn of revenue. The collapse in the share price took it down to May 1998 levels. The announcement adds to the deepening sense of crisis around the company, once the undisputed leader in the mobile phone business. It was overtaken for total revenue in the first quarter by Apple, which sold 18.7m iPhones – at nearly five times the average price of a Nokia smartphone, and 10 times the average price of a Nokia handset. Nokia said that its products are coming under intense price pressure, especially in China and Europe, where the combination of cheap phones from other manufacturers running Google’s Android mobile operating system and Apple’s high-end iPhone have squeezed its position. The company reiterated its plan to dump its current Symbian operating system for Microsoft’s Windows Phone OS on its high-end smartphones from “the fourth quarter of 2011″ as part of a longer-term plan to restore the company’s fortunes. Carolina Milanesi, mobile phones analyst for the research company Gartner, said Tuesday’s warnings could mark the low point for Nokia, which has not made a loss in its handset division for more than a decade. “It’s going to get worse before it gets better,” Milanesi said. “The second quarter should be the worst – if it isn’t then they have worse problems than we thought they did. In the third and fourth quarter this year there will be new products. If they can’t get traction with those then it will be a big issue.” The Finnish company is undergoing a tumultuous upheaval under its new chief executive Stephen Elop, who took over the job in September. He decided that the long-running Symbian software that had powered previous Nokia phones was outdated and that in smartphones, which makes up about a quarter of the 100m handsets the company sells each year, would be replaced over the next two years by Microsoft’s Windows Phone software. Part of the change has involved cutting thousands of staff, including outsourcing many involved with Symbian to the consultancy Accenture. “Strategy transitions are difficult. We recognise the need to deliver great mobile products, and therefore we must accelerate the pace of our transition,” Elop said. “Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011.” Analysts said that they found the abrupt change worrying. Lee Simpson of Jefferies & Co said: “You clearly have a Symbian platform that [mobile] operators are avoiding … But it shouldn’t be too surprising that we get another profit warning from Nokia for the Q2 and Q3 periods. What does strike us as quite surprising is the level to which the markets have dropped, we’re talking about breakeven now which is quite a slide. I think this level of shareholder destruction is now starting to look dangerous: what can these guys do to reverse this? Our stance is that it’s very difficult to value this business right now, because it has to be a different animal if and when it gets into recovery.” Jari Honko of Swedbank said: “The truth about Nokia’s competitiveness has come out now. We know that the company is loss-making at a group level. Consensus estimates will react strongly, and so will the shares. We will see more and more reflection on Nokia’s market share, and that is the worst thing to happen to this company, when the scale is shrinking fast.” He added: “It remains to be seen how low [market share] could go, but for smartphones we are talking about going under 20% this year.” Only two years ago Nokia had a 40% share of the smartphone market, but it was passed in the first quarter of this year by Android, with 32%. Nokia had 24% and Apple 18%. Nokia Smartphones Mobile phones Telecommunications industry Charles Arthur guardian.co.uk
Continue reading …