Q2 2010, Nokia Profit Down 40%
In the second quarter of this year, Nokia reported profits declined sharply, reaching 40 per cent to USD291 million, compared to the same period last year which reached USD487 million. Quoted by Cellular News, Friday (07/23/2010), Nokia quarter revenue is expected to rise only one percent over last year to USD12, 8 billion. But it predicted revenue would be down to four per cent in case of currency fluctuations.
“Despite the ongoing competitive challenges, we ended the second quarter with a number of reasons to stay optimistic about the future. First, the global handset market continued to grow in a healthy, headed by some of the less mature markets where Nokia is still the strongest. We were also encouraged by Our second quarter performance was still solid in the cell, assisted by some phone models are affordable, “said Nokia CEO Olli-Pekka Kallasvuo.
Sales for Devices & Services division in this quarter increased approximately three percents. But if the currency is fairly constant, the division actually even has declined by two percent. On this second quarter, total units sold phones reached 111.1 million units, indicating increased approximately eight percent year on year. Overall, the total number of mobile phones spread as many as 338 million units, representing an increase of 14 percent over last year.
Initial estimates, market share Motorola cell phone has become 33 percent in 2010 in the second quarter, down from the second quarter in 2009 which reached 35 percent, yet did not change at all if compared to market share in the first quarter of 2010.
According to analysts, this decline is one reason why Nokia looking for a new CEO. It said the analyst, this drastic decline was in line with a strong enough market pressure, and particularly from competitors like Apple, RIM and Google with Android operating system are also targeting high-end market.