Nokia records poor sales and loss
After ten years of being a leader in the mobile phone industry, Nokia made a loss of over 900 million euros in the third quarter of 2009, a staggering blemish compared to its 1.1 billion euros for the same period in 2008.
A huge part of the loss is attributed to the diving value of its Nokia Siemens Network Division which had a reported write off of 908m euros.
On the other hand, industry analysts seemed to be in unison pointing out that Nokia’s having been lax at developing smartphones did the company most of the losses. While Apple, Samsung, LG, Palm, HTC and other companies have released smartphones rigorously since last year, Nokia settled for its mid-level units, releasing their N97 smartphone too late. Apart from the existing competitors, new introductions from Palm Pre, the Blackberry Storm 2 and Motorola Dext.
Where a 12.2bn euros sales was achieved by the Finnish company last year, the net sales this year nosedived to a mere 9.8m euros, marking the first ever loss by Nokia since 1996. The chief executive of Nokia, Olli-Pekka Kallasvuo was quick to reason their poor sales were due to constraints brought about by component shortages.
Even with the seemingly bleak and portentous losses, Nokia remains solid about its overall performance in the global market, saying they have marked an increase in the sales of mobile devices in most of Europe, Latin America, the Middle East and the African region. Kallasvuo did mention that the increase also had their low performance in most of China and Asia Pacific, and also in North America offset.
Nokia also pointed out that it’s not the only one marking losses and decreased sales as the global mobile phone industry did fall by over 7% since last year, a figure that should not be tagged alone on the Finnish company.
For more information regarding this post, click here: BBC News
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