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View Full Version : Nokia Q2 2011: 'clearly disappointing' results, challenges 'greater than expected'


FeralKitty
07-21-2011, 12:40 PM
From engadget (http://www.engadget.com/2011/07/21/nokia-q2-2011-operating-profit-down-44-percent-since-q1-challe/):

With Nokia still yet to fully dive in to the Windows Phone (http://www.engadget.com/tag/windowsphone) swimming hole, you had to know it was going to be another ugly quarter's worth of results. And it is. The company just posted its Q2 2011 numbers and there's a definite downward trend. Operating profits declined 44 percent since Q1 (http://www.engadget.com/2011/04/21/nokias-q1-2011-smartphone-share-down-to-26-percent-more-chal/), 391 million Euro compared to 704, and net sales of mobile devices are down 23 percent over the same period -- 20 percent compared to Q2 last year.

In the earnings call, Stephen Elop didn't rock the boat, more or less sticking to the company line by talking up the company's "immediate actions" to address the current state of the market, which he states has largely shifted from a "battle of devices to a war of ecosystems." The company's ecosystem of choice is now, of course, Windows Phone, and Elop says he has "increased confidence" that the first Nokia WP7 devices will ship this year. Yes, "increased confidence," meaning there's still room for a slip, and he reconfirmed (http://www.engadget.com/2011/04/21/nokia-and-microsoft-sign-definitive-agreement-bring-windows-pho/) that those phones won't ship in volume until 2012.
Read more... (http://www.engadget.com/2011/07/21/nokia-q2-2011-operating-profit-down-44-percent-since-q1-challe/)

FeralKitty
07-21-2011, 01:15 PM
At this year's Microsoft Worldwide Partner Conference, Steve Ballmer admitted that the Windows Phone 7 OS was not the success he had expected and that the OS still holds only a very small share of the handset market.

That very small market share is propped up by Microsoft giving away about 800,000 phones to its employees. (Even Rare employees got WP7 phones (http://twitter.com/BIGsheep/status/73002655638757376), according to BIGsheep.)

Meanwhile, consumers are choosing Apple and Android smartphones, and Windows Phone market share continues to fall.

Microsoft/Nokia will face even more competition by 2012, as both a new iPhone 5, and a low-cost pre-paid Apple phone are expected before Nokia can even ship its WP7 phones in volume.

FeralKitty
07-21-2011, 01:21 PM
From TNW (http://thenextweb.com/apple/2011/07/21/official-apple-sold-more-iphones-than-nokias-entire-range-of-smartphones-in-q2/):

With Nokia’s second-quarter financials less than an hour old, its rival Apple is now officially selling more iPhone’s per quarter than Nokia’s entire smartphone range.

Read more... (http://thenextweb.com/apple/2011/07/21/official-apple-sold-more-iphones-than-nokias-entire-range-of-smartphones-in-q2/)