Feeds

Dollar decline stunts Symbian growth

Performance 'in line with expectations'

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

The strength of the pound against the dollar left Symbian's Q1 results looking less impressive than would be justified. However, the company is still losing money and may need to raise more capital. This could prove a crucial point in the company's relationship with leading shareholder Nokia.

Symbian said on 6 May that deliveries of its mobile phone operating systems more than doubled to 2.4m in the first quarter of the year. This was however 13 per cent down on the figure during the seasonally buoyant fourth quarter and the company was not helped by the slide in market share of its principal licensee Nokia.

CEO David Levin said the company had performed in line with expectations. He was encouraged by Symbian's strengthening position in Japan and said that, at the end of the quarter, 30 phones and variants based on Symbian OS were being readied for market by nine licensees.

Symbian is still leaking money and while revenue was 40.2 per cent higher at £8.7m, the operating loss was £5.4m, down from £8.5m. With £16.2m cash left in the bank, the company may need to raise more funds, which helps to explain why Psion sold its 31 per cent stake in Symbian earlier this year to Nokia for £136m.

The figures understate the company's progress as its license fees are quoted in dollars and the currency's fall in value hits a company whose accounts are in pounds sterling. Though it currently only has a tiny market share for high-end phones, Symbian is pinning hopes on version 8.0 of its OS, which enables a phone to operate on just one processor.

Symbian estimates this will reduce the cost of each handset by $25 to $35, enabling makers to penetrate the mid-market.

The big question now is how far other Symbian shareholders are concerned about the prospect of Nokia dominating the company. Once the Psion share sale gets regulatory approval, the other shareholders have the right to buy a pro rata allocation of the shares. If they all do so, Nokia will end up with less than 50 per cent of the company.

Source: ComputerWire/Datamonitor

Related research: Datamonitor: "MarketWatch: Telecoms - April 2004" (BFTC0981)

Related stories

Symbian doubles sales
Former Symbian, Psion boss answers all your questions
Symbian falters in battle with Microsoft
Sony, Ericsson plan move to block Nokia majority at Symbian
UI Wars: Sony loves Symbian, grits teeth
Psion gets green light for Symbian sale to Nokia
MS, Linux, board battles: Psion boss lists the threats to Symbian

Choosing a cloud hosting partner with confidence

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.