Olli-Pekka Kallasvuo was already
a man in a hot seat and these latest numbers will do little to lower the temperature. Nokia's net profit for Q2 2010 was €221 million, which most companies would be happy with were it not for the fact that
this company pulled in €380 million in the same quarter last year -- and that's with 2009, as Nokia's own report indicates, representing an economically tougher environment. Average selling prices for Nokia handsets used to be €64 back then, which dipped to €62 in the first quarter of this year, and is now at €61. Nokia says this has been caused by price pressures, "particularly in certain high-end smartphones," and though the change may appear small, a Euro's difference tends to be amplified when you're shifting upwards of 111 million units each trimester. For his part, OPK has said that the speculation about him being replaced isn't doing Nokia any good and he's determined that it "must be brought to an end one way or another." Guess we better keep an eye on this one then.
posted July 22nd 2010 7:21AM
I WAS EXPECTING more than 50% drop, reasons :
1)Nokia phones contains worst OS symbian
2)Nokia phones are most hideous and thick among all phone out there
3)Nokia phones are built with cheap plastic
4)Nokia phones are thickest phones among all phone out there
5) They copy others innovations and implement them very late using
sysmbian crap and results are in tolerable
6)NOKIA phones are practically unusable.
7)Dust formation under screen e.g 6800
I am also victim of Nokia crimes.
@TalentSupporter
Yet over a 100 million of those phones are used instead of the GodPhone by users paying full price (not some subsidized carrots dangled by carriers) every year.
Big part of Nokia's game is to spread their hardware far and wide since that inherently acts like a platform to spread their services. In the end they want to be the big boy in the mobile services game and that is also the reason why they wont go with Android or any other OS they don't own head-to-toe coz otherwise they cannot dominate the services aspect and will be left being a hardware pusher in the long-term like Moto or Samsung. It just tells you that in the long run the outlook is that hardware is going to be commoditized and it is services that count. And Nokia knows this and is gearing up for it. And ofcourse so does Google but if they dont handle their partner relations well, they may end off pissing their hw vendors. So I would not be too worried and 2011 looks like an interesting year ahead.
Problem is it is taking longer than expected but I think they have finally taken a stand and are fixing their errors. Case in point, how the N8 was delayed becoz its UI didn't meet the design expectations. Earlier Nokia would have never taken such a step and just released it half-baked. But now the fact they did means that that philosophy has changed and user-centric products are appearing in their portfolio. They just need to be *as good* as the others and they will win the battle - Nokia's branding, sales, manufacturing and distribution channels are 2nd to none.
Wall Street and investors are like 2 year olds - fickle and low attention span. What is important for Nokia is not to lose focus - they are very very close to beginning a new chapter of their high end devices in 2011 (well, Q4 2010 onwards). Without a single proper high end smartphone (N900 was produced in too low a volume despite excellent sales response) they have managed to stay profitable, hence things can only go up from next year. Moto on the other hand cannot turn profits even with best selling Droid phones. So they are doing OK at a time when other cos are at their peak but this is a cycle as has been seen in the past. So lets not assume AAPL will just keep going up or GOOG will keep having the luxury to throw shit at the wall to see if it sticks. Times change hard and fast esp. in the CE business. And also Nokia management is paying for its arrogance of 2006 when it though S60 3.2 was the greatest UI in the world - sometimes such knocks are necessary to get a few light bulbs flashing and innovation to re-occur. Interestingly, MSFT, AAPL and NOK all have faced such knocks and recovered which shows their inherent strength as mature companies. Google has not till now and still enjoying its honeymoon (albeit deteriorating), hence when they get knocked down, only then it will be known whether they are truly a strong company or not.
@naashak
what are you achieving by writing such long reply .
Nokia is such a copy that once upon time they did not spare motorola and made exact replica of RAZR.
Now they Nokia is literally attempting day light theft by copying coverflow. It think Nokia's end is near.
@TalentSupporter
The long reply is there to provide a broader perspective on where Nokia and the industry is going.coz some folks can't see beyond Coverflow and flashy transitions. :-)
So in your opinion just because Nokia used Coverflow in S^3, they are doomed. Fascinating logic.
@TalentSupporter
Just like certain other company have made copy&paste recently available in their OS? Just how certain other company have barely made their OS to multitask? And several other features that weren't quite there in the beginning.
Gee, that company must be doome- oh wait.
i don't get why people on here are exclaiming that nokia needs android to move forward.
meego is promising. besides, if nokia jumps on the (already overcrowded) android bandwagon, what's going to differentiate nokia's offerings from the rest of them?
we haven't seen it yet, but soon enough it's going to be the same old android os on different hardware and, quite frankly, that's boring.
we need winphone 7, meego etc. to keep it interesting!
We're in 2010 and Engadget still can't get it right with its comments section. -facepalm-
People are forgetting one thing - C3 and E5 - those two phones will change everything for Nokia. The biggest market for cellphones is Asia where texting is everything and those two phones are built for that and they are cheap as in REALLY cheap phones with WIFI, camera, social networking, QWERTY keyboard etc.
N8 and the phones following it will change the market also as it will be by far the best camera phone on the market also from the people I've met here in Asia that have more money than the average consumer they are all waiting for the N8.
When I ride the minibus here in Asia there is 10-12 people, I rarely see 1 phone that isn't Nokia and most have 2 phones. This is how big a brand Nokia is here.
US market is miniature because of bad conditions for the customers using the networks and Nokia knows this. They also know that the hype about superduper smartphones are just that - Hype. In the grand scheme of things Iphones, Droids, Evos etc. is a tiny tiny procentage of the total worldwide cellphone profits and on a world wide scale Nokia is king only Samsung (and in parts LG) can compete although they combined are still smaller than Nokia.
I enjoy all this unintelligent talk about Apple being bigger than Nokia - if you studied Nokia and how big the company really is, then I will put it in laymans terms - Nokia is so big (not just Nokia the cellphone company but the entire enterprise) that they could buy Apple AND Google without blinking. People tend to forget that Nokia has been so big for so long that they had to invest money and did so by buying companies in any thinkable enterprises - a common saying in Finland is that Nokia owns Finland and that is not entirely untrue - last figures I say is that Nokia owns more than 65% of _ANYTHING_ in Finland.
Nokia is so big that if they went bankrupt tomorrow and all the companies they invested in also closed - the world economy would crash completely and totally.
If Apple, Microsoft and Google went bankrupt tomorrow including everything they own, the financial markets would go into panic but it would not crash.
Apple is valued at around $200bn - Nokia has over $400bn in their current investment portfolio, this is money outside the company - I will let that number sink in.
@Spasser
Nokia is size of insect before Apple and Google.
@Spasser
That's all good and nice, and I have no clue if it is true.
However, Nokia should release a sexy new phone NOW. As in today or this week. I am tired of waiting for their next new thing until, ahem, the end of this quarter.
@TalentSupporter
Actually you are wrong again.
@JFH
Well, seeing the guy likes to think all of us Finns are staunch Nokioids or something...
Someone should "Photoshop" an exec diving off the building behind him to really get the point across.
And by Photoshop I mean edit a digital or scanned photo. I usually refrain from using names or nouns as verbs but to be understood on the internet these days, apparently you must.
I made a decision about myself and Nokia. I have supported Nokia with buying it's handsets for many years, but they are not inoovative anymore and they will lose as Palm did 10 years ago (remember that palm was saying that media and fun stuff doesn't belong to bussines handsets and lost game with windows mobile in almost a year).
They must make Ovi services available to other OS and devices right now and improve all services. Maps are OK, but everything else is not.
I am using Nokia N97 mini and I am satisifed with everything now, but if Symbian v3 will not be available for this device this year, I will go to Android and recommend everyone not to buy Nokia devices anymore. I hope I will change my mind, because Nokia is the last strong EU it-company.
@nikman
Move to the N8 when it comes out - you wont be disappointed.
@nikman
No its not. I would say SAP is.
@nikman
Why make OVI store available to other OSes? That makes no sense. Why try to build up a huge (possible) userbase only to then give it away?
Also, do note that others should then program in QT as well.
Good.
They need to do what everyone else is doing to save their asses. Dump Symbian and start going with Android.
@Aaron Neyer
Now you just have to give us good reasoning for your suggested action.
http://communities-dominate.blogs.com/brands/2010/07/midyear-point-for-nokia-next-in-bloodbath-update-and-they-did-grow-smartphone-market-share-again.html
Timo begs to disagree. Like many others.