Feeds

Nokia smartphones dumb down profits

Cheaper phones mean lower profits

The essential guide to IT transformation

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
prev story

Whitepapers

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.
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.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
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?