Feeds

Nokia smartphones dumb down profits

Cheaper phones mean lower profits

Best practices for enterprise data

Nokia had braced investors for bad news today, and duly announced higher revenues but lower profits in its Q2 earnings statement.

Net sales after adjustments topped €10bn, one per cent higher than the same quarter last year, and up five per cent sequentially. The mobile handset market grew five per cent in the period, but as a result of failing to match the growth, Nokia's share has fallen to 33 per cent.

But a higher proportion of cheaper phones meant that profits fell 31 per cent year-on-year to €295bn. That includes around €365m of charges.

Nokia actually sold more smartphones (it calls them "converged mobile devices" to include handhelds and laptops) in Q2 - volumes grew 12 per cent on Q1, and more than a year ago. But with only the niche N900 as a high-margin premium product, many of these were low cost 'numbered' Symbian devices, with a low ASP (Average Selling Price). The overall ASP has fallen from €64 to €61 in a year.

The charge into China has stalled, with sales down six per cent from Q1. Navteq and the Nokia Siemens Networks division continue to lose money, after charges and other accounting changes. But in both cases, the trend is in the right direction.

Among the product highlights, the official earning release highlights: "Nokia launched the Nokia Bicycle Charger Kit, an alternative charging solution built especially for people with limited access to electricity."

Eco-friendly: Nokia Bicycle Charger

The company says it employs 129,746 people, roughly half of whom work for Networks. ®

Recommendations for simplifying OS migration

More from The Register

next story
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Speak your brains on SIGNAL-FREE mobile comms
Readers chat to the pair who flog the tech
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?