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Android and iPhone bite into Nokia Q2 results

The fightback starts...soon?

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Nokia has been having a worse year than expected, reminding the world that it's a tough market out there.

Not that the world's largest phone manufacturer is downgrading expectations for the industry as a whole, or even expecting its own market share to drop significantly. The company will simply be selling fewer high-end handsets during the next few months.

That shouldn't be any great surprise – the majority of Nokia devices are Symbian-based and Symbian has been slowly moving towards ^3. Even Nokia's alternative, Maemo, is in the process of becoming MeeGo. One shouldn't expect great sales when the top end is in such turmoil, especially when iOS and Android are catching so many headlines.

The fight-back should start with the N8, which is based on Symbian ^3 and is getting a cautiously optimistic response so far, though how much that turns into sales remains to be seen. Nokia still has a lot of work to do encouraging developers to migrate to ^3 and the Ovi store.

Until then the company reckons it will sell slightly fewer handsets, but for less revenue as the average price per sale drops, and that will push net sales to the lower end of expectations (€6.7-€7.2bn) or worse.

More details will come with the Q2 results on 22 July, but don't expect good news. ®

The smart choice: opportunity from uncertainty

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