Nokia who has seen their smartphone marketshare collapse to 24% in the first quarter of 2011 down from 38.8% a year earlier is set to announce another “poor” result on Friday with analysts tipping a possible move into losses.
Nokia, who has seen their smartphone marketshare collapse to 24% in the first quarter of 2011 down from 38.8% a year earlier, is set to announce another “poor” result on Friday with analysts tipping a possible move into losses.
According to Telstra and Vodafone executives Nokia branded hansets are now “difficult to sell” as the lack “consumer appeal”.
Struggling to compete with rival Apple and manufacturers of Android based phones the Company who is now banking on a relationship with Microsoft to save the Company from total extinction in the Smartphone market.
In February Nokia dumped its Symbian operating system in the hope that the new Windows OS will lift their fortunes.
In May, Nokia warned that results for its key devices-and-services division could be around “break-even,” at best.
Even in emerging markets Nokia is fast losing ground to Chinese handsets
The Wall Street Journal said that analysts don’t expect a good result from the Company.
“I don’t think any one of these is going to stop Nokia’s decline,” says industry analyst Neil Mawston with Strategy Analytics.
It’s expected that Nokia will try and save their business along with the phone operations of Microsoft who have less than 4% share of the phone market by launching sub $200 Windows based phones later this year.
Nomura expects the company to post a negative operating margin of 3.5%, a measure of profitability, in the third quarter, down from a reported 3.9% margin in 2010.
