Nokia reports weaker than expected first quarter results

Nokia reports weaker than expected first quarter results
Nokia reported lower than expected first quarter earnings today, but the part of the report that sent the stock down sharply was the news that the cellphone manufacturer had to cut margin estimates in upcoming periods because of rough competition in the smartphone industry. While the Finish based firm tallied a profit of 349 million EUR ($467.6 million USD) in the three month period ending in March, up from 122 million EUR in the previous year, the results fell short of the 370 million EUR that analysts had estimated for Nokia in the quarter.The key part of the report was the cut in expectations of full year operating margin to a range of 11%-13%, down from the previously projected 12%-14%. Competition in the global smartphone industry from Apple, Research In Motion, Samsung and Android powered devices are putting downward pressure on prices.

During Q1, Nokia sold 108 million handsets at an average price of  62 EUR. To show the effect of competition, last year the company sold 93 million units in the same period, but at a higher average selling price of 65 EUR. The company did manage to pick up a little market share according to estimates that show Nokia with a 33% piece of the mobile device market vs. 32% last year. The company has been trying to beat back the competition by offering items like free navigation on some models. There are also battles going on in the software area where Nokia has announced that its first handset to use the new Symbian 3 OS will be shipped later than expected in the third quarter. For the industry as a whole, Nokia forecasts 10% growth in handset shipments during 2010. Nokia's shares have declined by nearly 15% following the release of the report.

source: WSJ



1. zerglisk

Posts: 544; Member since: Feb 09, 2010

I dont find it surprising that Nokia isn't doing great for Q1... because there is nothing that is very eye-catching happening for Nokia. However, this may change at Q2 and Q3 when newer and cooler phones come out!

4. JackFace

Posts: 190; Member since: Nov 03, 2009

For Northern America!! (Hopefully)

2. ilia1986 unregistered

NOKIA BURN IN HELL!!!!!! Yes! Admit defeat!! And instead try to produce something that you might actually be good at.. like frying pans. Yeah! Nokia Frying Pans: Connecting between people and their food.

3. thatdude1 unregistered

You're an idiot, ilia1986. If Nokia wasn't good at what they do, how come there market share still rose? How come they still outsell everyone not only in handsets but OS as well? If you were any dumber, you'd make jelly look like it has brains.

5. ilia1986 unregistered

History. This will all change - and it began in 2007. Its just a matter of time.. And for the record - I am fully ready to wish nothing but death to a corporation whose phone (nokia 5800) was responsible for every lasting moment of IMMENSE SUFFERING I had in these 14 months I own it..

6. BillLau82

Posts: 1; Member since: Apr 22, 2010

Phone Arena, this article's title is misleading. If you go to all the other techblogs, Nokia's profits have actually RISEN for Q1 since last fall you idiots. What a bunch of propoganda Americanised lot you guys are. What's up with the panick reporting and misleading information, totally goes against what you are supposed to do and that is, report things factually. As for the morons hating on Nokia, i'm guessing you are from the US. I understand not all you Yanks are Nokia haters, but most of you do come from the US where here in Europe, Android is less respected and still not that loved.

11. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

I speak as a US "Yank"...I've seen some of the best phones in the int'l market. Some of which I wished would make it stateside...but some phones are terrible as well. Same thing with US market. I personally am not impressed with Nokia or their Symbian OS. I don't consider myself a hater of all things Europe...tho.

12. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

P.S. - its just an opinion. Don't take it as a US/Euro battle. There's shitty phones in all corners of the world i.e. Samsung Instinct :)

7. DontHateOnS60

Posts: 872; Member since: Apr 20, 2009

Maybe this delay in Symbian^3 is for the better, one would hope. They still might announce something before the third quarter though. Last time I checked, no company was perfect. Even Apple falls victim to tough times every now and then.

8. nghtwng68

Posts: 108; Member since: Nov 26, 2009

Nokia will survive and endure. They are making and supplying the entire world with mobile phones and although they can't tap into the U.S. market, give me a Nokia device any day. The iPhone is just catching up(2.0mp camera, picture messaging etc.) on what the NSeries devices have been doing for years and better. The iPhone is a great device, don't get me wrong, but the superb versatility of Nokia high- end, unlocked, strong battery, computer phones are just top notch.

9. ilia1986 unregistered

You mentioned "Versatility" on the nokia devices... yet the app store has 200,000 apps to download (and alot of them are at much cheaper prices) whereas the ovi store has maybe 5,000 and all of its prices are in euros which amke em expen$ive. Compare a 99c or 1.99 app in the appstore vs 3 euros for some wallpaper in the ovi store. Hows that for versatility? And in terms of Hardware - the iphone already caught up in the next one - with 5MP camera, video calls etc, while nokia hasnt even implemented freaking multi-touch in any of their devices!

13. Frankie Fish

Posts: 5; Member since: Apr 24, 2010

Implementation of 5MP camera and making video calls are feats that have been done by Nokia years ago, yet you boast of the Apple. Nokia is on a testing ground right now. Nokia doesn't fail its old users just like Apple does. Only thing good of Apple is the app store and the fast processor+OS.Btw does ur apple do multi-task? LOL. Let Nokia bring a faster processor and good hardware specs and we will see who will be successful.

14. ilia1986 unregistered

We wont have too - because there is no freaking way in the world that nokia is going to catch up to 200,000 apps anytime soon. Of course hell could freeze over and Nokia could someday release a device which both supports multi-touch, and has access to an online store with a DECENT (read at least current-android sized) amound of apps (oh and they would also have to be in US$ for them to be actually worthy their price (10 euros for a pdf reader lol). So yeah - Nokia had some very good hardware when iPhone 1.0 came.. but the iphone cought up. Oh and I think that "fast processor + OS + 200k apps" kinda means WIN for me.. and so for anyone else I think... not to mention that the iPhone is the most comfortable device to use to date (with iTunes, and many many other brilliant interface and hardware features).

10. James Dang

Posts: 16; Member since: Oct 24, 2009

If Nokia want to go back in the competition they have to change their mind set. Try to produce more phone that are better than competitors. I think Nokia have to leave the Symbian operation system and go for Android. This be better. Now days I see Nokia are so afraid to make a challenge with other competitor especially I Phone, Samsung, Rim Blackberry and even their traditional competitor Sony Ericsson. I really respect Sony Ericsson because they can survive in the competition because the follow what the Market needs. They are really matured. Nokia supposed can challenge with I Phone. I Phone??? I see their camera (2 megapixel) is not near to my old Nokia N70, the screen??? Still lack behind the Nokia N86/N85 I mean the quality not the size. System still cannot support Youtube like my Nokia N82. Nokia suppose to be brave to enter the challenge. Nokia connecting people!!!!

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