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
One Change I would like to see
7/20/2011 11:29:04 AM
I would love to see cell phones that can work on any network regardless of technology. Then end this subsidized phone crap. I hate that the actual cost of the phone is hidden behind these carriers plans. I know my smart phone doesnt cost 600 dollars to make.
Like my Car I pay for it and can drive anywhere I choose. I rather have it easy to pick up my phone and be able to use the phone on any carrier I so choose. Its already possible the issue is the carriers love locking down their networks and their phones.
Its a modern day Cartel of sorts.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Apple, Microsoft, and Major U.S. Wireless Carriers Embrace Smartphone "Kill Switch"
April 16, 2014, 10:08 AM
Lenovo Outs New Flex Notebooks, Desktop PCs
April 16, 2014, 9:39 AM
Samsung Launching Android Wear Smartwatch, High-end Tizen Smartphone This Year
April 16, 2014, 8:45 AM
Microsoft Announces the First Steps in Its "Universal Apps" Program
April 15, 2014, 7:59 PM
Amazon Fire Phone Prototype Leaks, Will Feature 3D Camera Interface
April 15, 2014, 1:33 PM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
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
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information