Nokia keeps its market share lead despite dwindling profits
The mobile phone market is facing massive losses during the economic crisis as consumers are not purchasing new devices they way they did in previous years. There are a few exceptions in the smartphone market with Apple and RIM doing well despite the economy.
Nokia is the world's largest producer of mobile phones. Despite the distinction of having the largest market share, Nokia's profits are down massively compared to the same period of 2008. CNET News reports that Nokia announced this week that its net profits for Q1 2009 fell a massive 90% compared to the same quarter in 2008.
Nokia's Q1 ended on March 31 and during the period net profits were 122 million euros compared to Q1 2008 net profits of 1.22 billion euros. Analysts had expected Nokia to report profits of 306 million euros, roughly twice what it reported.
Sales for the quarter dropped from 12.66 billion euros in 2008 to 9.27 billion euros for the quarter, also below analyst expectations of 9.80 billion euros. According to Nokia, it shipped 93.2 million handsets during Q1 2009, a number 19% below the amount of handsets shipped in 2008 and down 18% from Q4 2008.
Nokia had previously stated that it expected sales to be down 10% in 2009 compared to 2008, but much of the decline is expected in the first half of 2009. Nokia reports that Q2 sales volumes are expected to maintain current levels.
Nokia maintained its 37% market share over the quarter blaming the poor sales on the economic crisis. Nokia is also losing ground in one of the few remaining areas of growth in the mobile phone market -- high-end smartphones. Nokia is under heavy pressure from competing firms Apple and RIM in the high-end market.
Nokia maintains that it is seeing success with the 5800 XpressMusic smartphone and shipped 2.6 million units in Q1 2009. The 5800 XpressMusic was pulled from the U.S. market soon after its introduction after issues with 3G network compatibility were discovered.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
|
Most Popular ArticlesReport: Apple to Debut iPad 3 During First Week of March February 10, 2012, 9:36 AM Nikon Announces 36.3MP D800, D800E D-SLRs February 7, 2012, 10:11 AM Quick Note: Acura Unveils Production Version of ILX Hybrid Sedan February 8, 2012, 9:10 AM Google's Motorola Mobility Purchase Approval Expected Next Week February 9, 2012, 3:02 PM AMD Concedes Die-Shrink Race to Intel, Considers ARM Cores February 6, 2012, 11:45 AM
|