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: No wonder
7/20/2011 2:33:35 AM
The current Nokia smartphones are indeed using processors from two or three generations ago - if the current generation is considered dual-core A9 processors, the previous generation single-core but 1+ GHz.
By what I know, Nokia uses 600+ MHz processors in their smartphones, so they're indeed two generations back in terms of hardware. On the other side, the camera integrated in the N8 is the best smartphone camera on the market (not that this means anything)
RE: No wonder
7/20/2011 10:15:20 AM
I can use my C5 without charging for a week.
Howabout your iphone, droid? 1day?
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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
Samsung Hopes to Launch Budget Tizen Device in India by November
September 19, 2014, 5:25 PM
Verizon Wireless Wi-Fi Calling Coming Next Year, Company Sees No Rush to Offer Feature
September 19, 2014, 11:45 AM
Quick Note: Toshiba to Restructure PC Business, Cut 900 Jobs Worldwide
September 18, 2014, 1:40 PM
Samsung Galaxy Note 4 U.S. Pre-orders Start Sept 19, Launches Oct 14
September 18, 2014, 10:15 AM
Amazon Releases New and Refreshed Kindle Fire Tablets, Announces Fire OS 4
September 17, 2014, 10:23 PM
Apple Launches iOS 8 for iPads, iPhones
September 17, 2014, 1:54 PM
Most Popular Articles
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Apple iPhone 6, iPhone 6 Plus Reviews Roll In
September 16, 2014, 9:13 PM
Samsung Calls Out “Copycat” Apple for 5.5” iPhone 6 Plus in New Ads
September 14, 2014, 11:06 PM
Confirmed: Next Generation of Windows to Be Announced on September 30
September 15, 2014, 4:43 PM
Latest Blog Posts
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
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information