The world's largest mobile phone manufacturer, Nokia, issued its third profit decline in a row yesterday as it struggles in the booming smartphone sector.Net sales for the Finnish group was up 6% to € 12.7bn (£ 10.9bn) in the last fourth of 2010, while those of their mobile phones and services division, the largest part of the company, grew only 4% to € 8.5bn - which after adjusting for currency fluctuations, amounted to zero growth.Pre tax fell by 22% to € 833m, and underlying earnings per share fell to € 0.22, excluding a boost from lower than expected taxes.Nokia also warned that results in the next quarter would be weak, with operating profit margins are expected to fall to between 7% and 10%, down from 11.3% in the last quarter.That concerned analysts, who warned that the company was under attack on both ends of the phone market.At the lower end Nokia faces generic manufacturers to produce cheap phones, especially in Asia, the Middle East and Africa.
Nokia's global share of the valuable smart phone market continued to fall, down to 31% in the quarter, compared with 38% in the previous three months.Stephen Elop, the former Microsoft executive who took over as Nokia's CEO in September, praised the solid performance and encouraging growth in mobile devices.But he added that Nokia is facing some major challenges to our competitiveness and our execution.In short, changed the industry, and now it is time for Nokia to change faster.He has promised to unveil a new strategy for the company the 11 February, before the Mobile World Parliament event in Barcelona.Analysts, but warned that Nokia has big challenges.Geoff blab of CCS Insight said: Disappointing total volume, including smart phones, emphasizes that these are dark days for Nokia.In 12 months Nokia has gone from 38% to 33% market share [in smartphones] and is under sustained attack over all segments.
Even more dramatically than the percentage loss in smartphones is the slide in market share in the standard phones.They seem to be affected by a massive attack in lower price tiers.Nokia sold a total of 123.7m mobile phones in the quarter, to 95.4 m which was the standard handset and 28.3m was smartphones.It is still the largest smartphone manufacturer in the world, ahead of Samsung, LG, Apple (who sold 16.2mi same period) and RIM (sold 14.2m). But these figures were only up 7% from the previous quarter, despite the launch of the N8 and C7 phones that were meant to strengthen the company's reputation for high end.However, dropped the average selling price of Nokia's smart phones in annual comparisons to € 156 from € 186 , a 17% decrease; Nokia's smart phone business had a turnover of € 4.41bn in the quarter.
nu
There is a large installed base of Nokia users, but the company needs to win back the cool people who have gone on to other platforms.Once it's just a touch-screen, it's not about design - it's about software.And for Nokia to expand, it must attract my daughter, not my mum.A key part of Apple's success with the iPhone app has been in the ecosystem, which has led more than a billion dollars of revenues to the App Store and a stronger connection to users' phones. Nokia has struggled to have similar effects with its own Ovi Store.Nokia's shares fell by more than 6% when the results were published, but they recovered after Elop's call to close 0.8% lower.
Nokia's global share of the valuable smart phone market continued to fall, down to 31% in the quarter, compared with 38% in the previous three months.Stephen Elop, the former Microsoft executive who took over as Nokia's CEO in September, praised the solid performance and encouraging growth in mobile devices.But he added that Nokia is facing some major challenges to our competitiveness and our execution.In short, changed the industry, and now it is time for Nokia to change faster.He has promised to unveil a new strategy for the company the 11 February, before the Mobile World Parliament event in Barcelona.Analysts, but warned that Nokia has big challenges.Geoff blab of CCS Insight said: Disappointing total volume, including smart phones, emphasizes that these are dark days for Nokia.In 12 months Nokia has gone from 38% to 33% market share [in smartphones] and is under sustained attack over all segments.
Even more dramatically than the percentage loss in smartphones is the slide in market share in the standard phones.They seem to be affected by a massive attack in lower price tiers.Nokia sold a total of 123.7m mobile phones in the quarter, to 95.4 m which was the standard handset and 28.3m was smartphones.It is still the largest smartphone manufacturer in the world, ahead of Samsung, LG, Apple (who sold 16.2mi same period) and RIM (sold 14.2m). But these figures were only up 7% from the previous quarter, despite the launch of the N8 and C7 phones that were meant to strengthen the company's reputation for high end.However, dropped the average selling price of Nokia's smart phones in annual comparisons to € 156 from € 186 , a 17% decrease; Nokia's smart phone business had a turnover of € 4.41bn in the quarter.
nu
There is a large installed base of Nokia users, but the company needs to win back the cool people who have gone on to other platforms.Once it's just a touch-screen, it's not about design - it's about software.And for Nokia to expand, it must attract my daughter, not my mum.A key part of Apple's success with the iPhone app has been in the ecosystem, which has led more than a billion dollars of revenues to the App Store and a stronger connection to users' phones. Nokia has struggled to have similar effects with its own Ovi Store.Nokia's shares fell by more than 6% when the results were published, but they recovered after Elop's call to close 0.8% lower.
No comments:
Post a Comment