Nokia feels the negative PR effect
August 15th, 2007 by Wendy McAuliffe
The impact PR can have upon a company’s share price is dramatic, and this morning Nokia felt the effects when over half a billion pounds was wiped off its stock market value after admitting that 46m of its mobile phones were at risk of overheating.
Shares in the mobile phone manufacturer dropped by nearly 1% following the announcement, losing €0.21 to €22.42. This knocked €821m (£557m) off its market capitalisation.
According to reports, Nokia waited until 100 reports of phones short-circuiting had been received, before issuing a statement. One only has to do a quick Technorati search to see that the blogosphere is rife with negative commentary about the admission, which arguably didn’t come soon enough…
