Nokia’s Profit Falls 66%, Giant’s Not So Big Anymore?
Nokia has just announced some stunning figures, that show a 66% collapse of its net quarterly profit, caused by lower phone sales and decreased prices. This incredible news made the Nokia shares fall 8.65%, which is not something any company would want during depression.
Meanwhile, the phone manufacturer’s market share fell to 38%, from 40% one year before and the future is not bright at all for the Finns. We could call this the “iPhone complex”, since the decline started with the iPhone’s launch. While Motorola is always on the edge of complete decay, Sony Ericsson is losing big bucks and now Nokia fails to perform as expected.
In the mean time Samsung and LG are doing quite well, specially thanks to their innovative interfaces and many successful handsets they’ve launched over the past year. Nokia has been extremely uninspired lately, launching a poor cameraphone, the N86, the underperfoming N97 touchscreen smartphone with a mere 434 MHz CPU and a bunch of other unimportant mid end devices.
The 5800 XpressMusic was probably the only reason at all to make profit in the last year, probably due to its relatively low price. If you ask me, I think that Nokia’s decline will continue and if they don’t launch an iPhone killer faster, they’ll go the Motorola way.