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But trouble phonemaker does manage to be the street's pessimistic predictions

Generally it's a sign that things are looking fairly dire when a company goes to sell its headquarters.  And for embattled Finnish phonemaker Nokia Oyj. (HEX:NOK1V), another quarter has come and gone with news of a fresh round of financials [PDF] which, on the surface, look very ugly.

Nokia made €7.24B (~$9.49B USD) in revenue over the quarter, down 4 percent from last quarter and 19 percent from last year.  But there was a bit of good news.  Of 23 analysts surveyed by The Financial Times (UK), the average expectation was revenue of €6.93B (~$9.08B USD).  In other words things look very bad, but not quite as bad as the gloomy estimates lofted by the street.

Also in the good news category, Nokia managed to move 2.9 million Lumia (Windows Phones) in the quarter, despite an impending update to Windows Phone 8 on the horizon (which will not support current handsets).  That's down approximately a quarter from the 4 million moved in Q2, but, again, even the most successful smartphone companies like Apple, Inc. (AAPL) see similar dips at the end of their product cycle.

In the losses category, Nokia reduced its €826M ($1.08B USD) loss (Q2) to €576M ($755M USD) (Q3).  Losing three-quarters of a billion dollars in a quarter is bad by any measure, but the trimmed loss does offer some signs of hope for Nokia.


Nokia rebuts the argument that Windows Phone 8 and the Lumia 810/820/822/920s are its "last chance" at remaining relevant in the smartphone argument.  However, the sustained quarters of large losses would certainly seem to suggest that time is running out for Nokia -- once the world's largest smartphone maker -- to win customers back.

Sources: Nokia, FT [analyst estimates]



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RE: So They Come Up With a Winning Strategy...
By Tony Swash on 10/18/2012 3:32:15 PM , Rating: -1
It's a real stutter. Will it become a trend?

I haven't been able to find the most important number in Google's results which is revenue-per-click as this is the key indicator of the health of Google's core business. In the previous most recent quarter revenue-per-click was down a significant 16% year on the year. The previous quarter it was down 12% year on year. The one before that down 8%. Dollars-per-click is essentially the price of an ad. Google has managed to keep it's ad revenues up over the last year or so by packing search results pages with many more money making ads. The volume of clicks have increased but the earned revenue from each click is deteriorating.

What was reported in today's results leak was that Google's GAAP operating income in the third quarter of 2012 was $2.74 billion, or 19% of revenues. This compares to GAAP operating income of $3.06 billion, or 31% of revenues, in the third quarter of 2011. Non-GAAP operating income in the third quarter of 2012 was $3.80 billion, or 27% of revenues. This compares to non-GAAP operating income of $3.63 billion, or 37% of revenues, in the third quarter of 2011.

Android is a net drain on Google's finances, especially if you factor in the wholly Android related Motorola costs, and it is still not delivering mobile returns that compensate for the slow erosion of it's desktop business.

Plus of course Google just lost 100 million plus map users in less than a month.


By Cheesew1z69 on 10/18/2012 3:35:30 PM , Rating: 2
Cool story bro...


By retrospooty on 10/18/2012 3:40:26 PM , Rating: 2
Long haul Tony, you dont operate a multi billion dollar company 1 quarter at a time. Remember, even the holy all mighty Apple almost went out of business once upon a time.

But, then again, you already know that. You are just here trying to spread your piddly agenda.


RE: So They Come Up With a Winning Strategy...
By Tony Swash on 10/18/2012 6:23:14 PM , Rating: 1
I found the figure I was looking for and the news is again not good for Google. Paid clicks increased 33% year-over-year, while cost per click fell 15%. So again what you have is Google scaling up it's ad business, by inserting more ads in more of it's services, but the cost of those ads declining. Google is selling more but making less profit. I wonder what will happen when the routes to greater ad density and click though becomes saturated?

http://www.forbes.com/sites/afontevecchia/2012/10/...


By retrospooty on 10/18/2012 7:40:56 PM , Rating: 2
Keep searching for more spin fodder Tony. Just curious, what are you using to search? Google? ;)


RE: So They Come Up With a Winning Strategy...
By JKflipflop98 on 10/19/2012 12:53:18 AM , Rating: 2
Apple nearly went bankrupt and died without Steve Jobs. The only thing that saved them from complete implosion was bringing Steve back. That isn't an option this time around.

Now we have the iPad mini LOLOL


By Tony Swash on 10/19/2012 9:08:13 AM , Rating: 1
quote:
Apple nearly went bankrupt and died without Steve Jobs. The only thing that saved them from complete implosion was bringing Steve back. That isn't an option this time around.


Apple are doooooomed!!! Again


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














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