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 10:15:20 AM
I can use my C5 without charging for a week.
Howabout your iphone, droid? 1day?
"DailyTech is the best kept secret on the Internet." -- Larry Barber
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
Google's Proposals for Search Antitrust Settlement Shot Down by European Commission
December 20, 2013, 8:52 PM
E-Cigarettes Included in NYC's Smoking Ban
December 20, 2013, 4:00 PM
BlackBerry Partners with Foxconn for BB10 Devices
December 20, 2013, 10:43 AM
3D Systems Acquires Xerox’s Solid Ink Teams in Oregon
December 18, 2013, 7:54 PM
While FCC Debates Allowing In-flight Voice Calls, Delta is Already Saying “Nope”
December 18, 2013, 12:11 PM
New Mac Pro Launches Tomorrow, Starts at $2,999
December 18, 2013, 10:56 AM
Most Popular Articles
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Top Microsoft Graphics Genius Defects to Google
December 17, 2013, 4:27 PM
Report: Fusion Fail? Softbank Wants to Merge Sprint and T-Mobile
December 15, 2013, 6:12 PM
NSA Debates Granting Snowden Amnesty if He Keeps His Mouth Shut
December 16, 2013, 1:17 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information