Nokia releases its Q1 financials, beats the analysts' modest margin expectations
Still, Nokia managed to eke out 9.8% margin in devices and services, higher than the consensus of 8.5% from the polled analysts. Revenue for the quarter was $15.2 billion, $642 million of which came out as profit (Apple, for instance, made almost ten times that in Q1).
The bad part is that Nokia sold 21.5 million "converged devices", which are predominantly Symbian-powered smartphones in Q1, 14% less than what it sold in Q4. Its smartphone market share diminished 5% since last quarter of 2010, and the rather bad 15% year-on-year, to 26% of the global market.
Nokia's worldwide cell phone market share by volume fell to 29%, a 2% decrease since Q4 2010, so it's still the world's top cell phone maker by number of units sold, just not earning much from these units on average. Espoo lowered its margin guidance for the second and third quarter of this year, expecting to hit 6-9% in this period, which it attributed to the transformations going on with the switch to the Nokia Windows Phone platform.
1. enthusiast (unregistered)
The decline in the market's confidence could have been avoided if Nokia managed its marketing PR well:
1. Release important announcements only when the time is right. (Since the Nokia-Windows deal was signed just today, they could have just announced the switch to WP platform today)
2. Tempering announcement of Nokia's abandonment of Symbian: Since WP remains to be an unproven platform for Nokia, they could have just repositioned Symbian to occupy the low-end and middle-tier segment in place of S40.
2. thatdude1 (unregistered)
Agreed @enthusiast. While they beat analyst predictions, they could have posted much better numbers had they(Elop)not said they were abandoning Symbian.
3. jthiagesan (Posts: 104; Member since: 20 Apr 2011)
Phonearena, give more news about this event please