So, there's good news and bad news here, and we're opting to go against tradition by dishing out the positive first.
Nokia just pushed out its Q1 2009 results, and while many firms have been struggling to stay afloat, at least it managed to turn a profit of €122 million ($160 million). That said, it's still looking at a staggering 90 percent drop in profits compared to its first quarter of 2008, where it raked in a mind-boggling €1.222 billion ($1.6 billion). Not surprisingly, sales were also down 27 percent to €9.28 billion ($12.2 billion) from €12.7 billion ($16.7 billion). Of course, Nokia's far from being alone in having to showcase less-than-beautiful Q1 numbers, but in reality, the damage could've been much worse; in fact, shares of the company's stock inched up by 8 percent following the reveal, as many had feared an even more significant decline. All in all, Nokia's still
holding strong to a 37 percent market share worldwide, and if CEO Olli-Pekka Kallasvuo has anything to do with it (hint: he does), things should be on the up and up here soon.
[Via
BBC]
posted April 16th 2009 9:24AM
For your infomation the Nokia 5800 has sold more than 3million units in 3 months, that is 1 million 5800 sold every month.
how do you lose 90% and still turn a profit, none of this business stuff makes sense!!!
Say you're left with 100 million in one quarter, the next you're only left with 10 million. Profits down 90%, but you still made money.
they lost 90% of PROFITS compared to Q1 2008 report. They didnt lose 90% of their overall value :P If that were they case Im sure we would be seeing them on the news asking for government bailouts ;)
@wako
Government bailouts are only an American thing...
What 90% ? It's over 90%!!!!!
Hi, the iPhone sold 1 million in a single weekend. Stupid, blind, dumb piece-of-shit Nokia fanboy.
Because they need to release the N97. They would have my 700 dollars immediately.
In the word's of Arnold, " DO IT KNOWWWWWWW ! "
One of these days, a brave apple user, in an attempt to find a faster route to LA, will take a flight East from New York rather than West, believing the world to be round. Much to his surprise, he will discover a brave new land known as THE REST OF THE FUCKING WORLD!!!! How are those apple sales doing europe, asia, africa? North America is only like 5% of the population, and Nokia kicks ass in almost every other market.
I want to know how a company loses 30% of it's sales and translates that into 90% of it's profits? Either they are just throwing money out the window, or they are doing some heavy re-investing.
Maybe 25% of the fallen sales was for stuff like the N95/6, the expensive, High profit margin phones. In a recession people stop spending on high value Items, such as N95/N96, and either buy nothing, or the lower value items which have less of a profit margin (1100 etc).
[wild speculation]
The profit margin on the top of the range phone probably exceeds the total amout an end user would pay for the bottom end phone.
I guess people have stopped buying the phones that have the largest profits. The cheap phones don't make a lot of money. So a 30% drop in the most expensive phones with the largest margins could easily translate to a 90% overall decrease in profits. I hope somebody understands what I mean and I hope I'm not entirely wrong with this theory.
On the other hand, "Chief Financial Officer Rick Simonson said the company's smart-phone market share increased to 38% in the first quarter from 32% in the fourth quarter of last year." I wonder where that 6% came from? Somebody must be in even bigger pains than Nokia. Sony-Ericsson perhaps?
I think Nokia is doing rather well. It could be worse. And the fact that they're really putting a lot of effort in revitalizing their product line is a really good sign. The three remaining quarters of this year are extremely important for Nokia and its future in the cellphone business.
The 90% drop from 30% drop in sales because theres expenses that depend on sold products and expences like buildings, product design that don't vary with the sold products.
It's like with a shop that pays rent. Let's say last year 50% of sales went to pay rent and 50% was profit. This year sales dropped 25% but profits 50% as the rent stays same.
The fact that after 30% drop in sales profits dropped only 90% means the people in Nokia have been pretty good to react to changing market.
I'm reading that they made 514 million € profit in this quarter. It says so in the source. http://www.nokia.com/A4136001?newsid=1305539
Operation profit: 514 million €
Anyways 5800 has already outsold iPhone. It took Nokia 3 months to outsell a TS phone Apple sold for what, like 2 years? :p
Mind showing some proof that the 5800 outsold the iPhone?
The 5800 hasn't outsold the iPhone. Though currently the 5800 is matching the rough estimates of iPhone shipment volumes. Nokia has sold something like 3 million units of 5800 since its launch in late November.
@whaaat: if you are reffering to the fictional number of 13 million 5800s sold, that news has been proven to be fake. that would mean they sold almost as many 5800s in a few months as they have N95s in 2 years.
in fact "only" 3 million 5800s have been sold so far.
Wow well 10% is 10% and at least it is a profit....
Well said!.
I'm not surprised, the half-assed attempt by Nokia to piggy back a touch layer on the 8 year old S60 crap is hopeless. Hardened Nokia fanboys will buy this crap but others couldn't care less.
Nokia phones have no style what so ever. Their just rectangle bricks like all of their models.
Yes, but is hard to find a cellphone with Carl Zeiss lens, real gps (not a-gps wannabe), online and OFFLINE maps (without to buy a external software) and many other features.
All I can say is Ahahahahahahaha! Suck it Nokia. Your lame phones were too expensive for too long. This century its all about iPhone and Blackberry.
And that's pretty damn sad I'd have to say.
Nokia share value increased 3,5 billion € after today’s news. Sales in China did grow 40%
to previous quarter and in US 31%.
I think it's time for Nokia to release something innovative and exciting. NONE of their phones excite me anymore. It's innovative devices like the iPhone, Pre, G1, and hell even the Storm - these are what keep these companies who create them relevant to everyone. Nokia has to be able to deliver something unique, simple, and fun to use. Their symbian OS just feels so dated to me. I think they should overhaul their OS (such a crappy OS) or make an Android phone (they can tweak the Android OS to do other amazing stuff). They have to do something fast or else, goodbye.
Here's a tip for Nokia - Publicise your PC Suite application. My aging cellphone recently died and I wanted a replacement that allowed me to sync my calendar, contacts and notes with outlook. I went to 4 different providers and every one told me I needed to buy a smartphone - blackberry, LG touch etc. As I didn't want to be paying an extra for monthly data plans of $20 or more, I decided to investigate myself. I found that Nokia, and only Nokia as far as I can tell, has a nice application PC Suite that runs on the PC and the phone allowing you to sync your data via a USB or Bluetooth connection. It's not as sexy as smartphone push technology, but works fine for my needs. I have a $15 a month basic plan, but can still sync my information. Why don't Nokia make a big deal of publicising this?
I love PC Suite. Beats Blackberry Desktop Manager any day.
YAY!
Hi Gabe,
I love it too. My old cellphone was a palm/cellphone combo from Kyocera which used palm synchronisation software. PC Suite is just as good and in fact I prefer the user interface. I think we're some of the few who know Nokia's best kept secret!
Regards
Andy