Nokia announces a bleak first and second quarter earnings
Nokia announced that its first and second quarter earnings for the year could be lower that first forecasted due to issues regarding the transition from Symbian to Windows Phone platforms and also steep competition that it faced from Apple’s iPhones and the Android-powered devices.
Nokia Lumia 900 (Image credit: Nokia)
On its initial prediction, Nokia has announced flat revenue but warned that it could drop to about 3 per cent for both the first quarter and the second quarter of 2012.
The firm attributed the drop of revenue to lower income per device sale and competition that it encounters in emerging markets such as India, China and the Middle East where it previously has a strong presence.
The decline in revenue has been a very disappointing news for Nokia but it also reflects its determination to reinvent itself for both its new devices and services.
Though with this setback, Nokia still has some good news to be proud of – that it sold over two million Lumia smartphones in the first quarter of 2012, and the recent launch of its flagship phone, the Lumia 900 in the US is an evidence that it is beginning to take the share of the smartphone market.
Nokia’s early success in the Lumia range of smartphones further strengthened its determination and investment in the device and hereto improves its presence in the smartphone market, which is stringently held by Apple and Samsung. Moreover, Nokia’s partner and distributors has been supporting Nokia all the way, notably support for the Windows Phone platform as third ecosystem and one proof of this is the recent launch of Nokia’s flagship phone, the Nokia Lumia 900 by AT&T in the US.
The launch of the Lumia 900 is however is far from being smooth – it has a software glitch that poses problem with connectivity but Nokia is quick to announce a $100 credit to pacify customers.
The problem of the falling revenue is perhaps due to the hitch regarding the transitional period and the competition from rival vendors but the amazing two million units sold in the first quarter of 2012 is to indicate that Nokia is moving into the right direction and signals a brighter future for the company.
Via: V3
Nokia announces a bleak first and second quarter earnings
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