In recent days, according to domestic media reports, Nokia issued a financial report, due to weak demand for mobile phones, which is released by Nokia more than a decade to a minimum profit results. Results, showing a net profit of the first quarter of 2009 from a year earlier to 1.22 billion euros fell 122 million euros (about 160 million U.S. dollars), fell as much as 90%; earnings per share fell from 32 euro cents to 3 cents . Nokia’s first quarter revenue from the same period last year to 12.66 billion euros down 9.27 billion euros, lower than analyst expectations of 9.8 billion euros.
Nokia mobile phones on sale terminal year, the global portable phone sales is accounted for virtually 40 per 100, but in the field of high-end educated phones beat the Apple iPhone (mobile Internet) and the RIM BlackBerry competition. Inhibit the fiscal downturn in consumer spending and diminish the diagram of consumers to depose the portable phone influenced the sales of Nokia mobile phones. Nokia reiterated the industry’s portable phone sales this year will fall 10% of the envisage, and is in all prospect to diminish in first half of this year is greater than the rate in the second half. Nokia said the first quarter of the company’s portable phone sales 93.2 million for the same time span terminal year plunged by 19% through the fourth quarter of terminal year, down 18%. Nokia CEO Olli-Pekka Kallasvuo said, “operators and distributors as a result of actions to diminish inventory, the first quarter of channel inventory has been significantly reduced. This is the first quarter we have had a negative impact on sales, but it also shows that the second quarter of portable phone sales would have higher predictability. ”
Behind the decline in the performance of Nokia’s job cuts are carried out in an orderly manner, according to foreign media reports, Nokia 1000 in order to obtain compensation for employees to leave. Earlier this year Nokia announced a global plan to apply for any voluntary resignation by a staff compensation. The scheme from March 1 to start accepting applications for the total number of 1,000 people, was originally scheduled to end May 30. Today the number has been achieved, Nokia has also brought forward the end of the adjustment of the staff. As we all know, this year the financial crisis sweeping the globe on a number of industries have a significant impact, especially in the consumer goods industry, as the decline in people’s spending power, consumer enthusiasm for an even greater than the past, after all, when the work can not be guaranteed, the spending power significantly to decline is inevitable. Mobile phone industry has also suffered the impact of nature can not be avoided, which is why Nokia profits sharply down one of the reasons why. However, in addition, Nokia is also fast declining profits and growing competition has a lot to press.
At present, the mobile telephone market has been basic to the high value-added localities of the intelligent telephone full transition, particularly with the extending attractiveness of 3G, this tendency of more fast evolution, and in the intelligent telephone market, Nokia is not thriving. Although the Nokia telephones in the international market share of numerous, but in high value-added benefit of Nokia’s market is not much. We could glimpse that both have an apple crop or blackberry constitute a mighty risk to Nokia, encompassing the launch of Google Android, it will furthermore launch its own G1, G2, after wireless telephone, go in the wireless telephone market is very resolute to become more powerful and more powerful, connected with escalating Microsoft Windows Mobile schemes and proposes to launch its own wireless phone. Although the Nokia acquisition of Symbian, and Nokia for free to encourage the dignity and respect which the wireless telephone scheme, but because of expanding affray, Nokia in the market’s leverage is falling, albeit slowly. This is furthermore a critical down turn in earnings margins Nokia one of the causes why, after all, in the intelligent telephone market, a higher value-added, earnings in general the market is somewhat better, but the market affray is most strong, Nokia will become the second Motorola do?
This is probably a lot of people do not want to see. Of course, after all, not Motorola, Nokia, Motorola is one of the reasons for the failure of the product change is too slow, gradual loss of the market. Nokia products that keep pace with the change of speed or rhythm of the market, the introduction of new products basically in line with the market changes, the only regret is that when the popular touch technologies, the Nokia is not the first time in a follow-up, to a certain extent to Apple, Samsung, etc. involved in the first touch screen mobile phone manufacturers to market opportunities. Now, we can see that Nokia have begun to develop its own touch-screen technology cell phones, N97 is the introduction of the beginning of attempts, I believe more then touch technology, Nokia mobile phone will be available. In fact, the impact of the global financial crisis by the downturn in the state of the market, Nokia have a lot of work to be done.
How in the educated phone market and Apple, BlackBerry is a essential competition in the portable phone operating system, and how Google, Microsoft’s competition is a lifeline. In market expansion, Nokia’s task to be done and there are many, particularly in the expansion of emerging markets, Nokia is also continuing to be forceful, will determine its global portable phone market’s dominant placement is not rudimentally strong. Although the impact of the economic calamity has far-reaching expansion in emerging markets, however, the impact is relatively worse, so the market is how to seize the essential, if the laissez-faire, afterward Motorola, Nokia rung is not probable to follow. Of course, is that it can be more time to grasp the pulse of the market repeatedly launch novel goods to rouse the eagerness of people’s consumption, which is the basis of a forceful resumption of Nokia.
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