Report: Nokia Basic Phones Generate Greater Profits Than Smartphones
July 19, 2011 3:44 PM
comment(s) - last by
But Q1 results for both Nokia basic phones and smartphones fell from last year
A few years back, it was common to mainly see basic phones in everyone's hands with a few smartphones here and there. Today, all that has changed as new versions of iPhones, Blackberry's and Android-based smartphones are released. In fact, new studies have shown that
35 percent of U.S. adults own smartphones.
not everyone is up-to-date
in the smartphone world. Nokia recently announced that its basic phones generate greater operating profits than its smartphones.
According to Nokia business results, its smartphone operating profit margin dropped to 6.2 percent in the first quarter. First quarter results from last year were at 10.4 percent. While Nokia's basic phones generate better operating profits, the margin on these phones experienced a drop as well from 19.4 percent last year to 16.5 percent this year.
"These numbers show
how behind Nokia smartphone margins are
compared with its rivals," said IDC analyst Francisco Jeronimo. "Nokia has been tackling the decline of its smartphone market share by focusing on the mid-tier price points and price cuts, which has had a straight impact on margins and profits."
With the basic phones market share falling to Asian rivals and the smartphone market share eaten up by Apple, HTC and Samsung, Nokia has fallen way behind in the races. Nokia Chief Executive Stephen Elop hopes to change this by introducing
new smartphones with Microsoft's Windows software
, but these efforts might be too little too late, since they're not expected to release until later this year.
Analysts predict that Nokia will experience a sharp fall in second-quarter results. These earnings are expected to be reported on July 21.
This article is over a month old, voting and posting comments is disabled
RE: is this rea*@@ a surprise?
7/19/2011 7:30:10 PM
I doubt a dumbphone is worth $100. I have a palm Pixi Plus that I bought for $50 brand-new no-contract from Newegg. Before that, I was using a $25 dumbphone. (Really, really dumb. No camera, no internet, no volume control) I'm loving this phone. For $50 without contract, I don't think it can be beat.
RE: is this rea*@@ a surprise?
7/20/2011 1:43:28 AM
The only advantage a carrier has selling you a dumbphone is the lack of a subsidy they might dish out if you bought a smartphone.
It's not that they
more from you buying a dumbphone, they just lose less.
They make it all back during the contract, especially in the circumstance you break the contract. T-mob is up to $200 now for smartphone contracts.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
Report: Nokia Plans $130M USD Windows Phone Advertising Bonanza
July 14, 2011, 10:50 AM
Survey: 35 Percent of U.S. Adults Own Smartphones
July 12, 2011, 9:45 AM
Nokia Slashes European Smartphone Prices
July 5, 2011, 12:03 PM
Now Verizon Wireless is Jumping on the "Double Data" Bandwagon
October 1, 2014, 2:50 PM
Sprint Counters AT&T’s Double Data Promotion, Offers Even Larger Data Pools
October 1, 2014, 1:38 PM
Report: Microsoft’s Lumia 530 to Hit T-Mobile This Month for $69 Off-contract
October 1, 2014, 9:10 AM
Quick Note: Pebble, Pebble Steel Smartwatches Reduced to $99, $199 Respectively
September 30, 2014, 3:59 PM
Report: Microsoft Lumia 830 Headed to AT&T on November 7
September 30, 2014, 12:51 PM
Update: Samsung Responds to Reports of Screen Gaps on Galaxy Note 4
September 30, 2014, 11:02 AM
Most Popular Articles
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
TiVo Mega Features 24TB of Storage, Can Record Three Years* Worth of TV Content
September 8, 2014, 8:45 AM
FBI Outraged That Apple, Google are Adopting Digital "Locks" to Protect Users
September 26, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information