Nokia: it's bad, but not that bad

Nokia: it's bad, but not that badThe quarterly financial results cycle is a very different prospect depending on who you are. For a company like Apple, it's a chance to see how many more billions you've added to the pile, while for the likes of Nokia right now, it's the latest painful reminder of what's gone wrong.

But it's an odd business, all the same. Take this week: Apple dutifully announces another set of positive numbers, and its share price drops. Nokia's profits plummet again, and yep... its share price has gone up.

It's all about expectations, y'see, and basically everyone's expectations of Apple right now are sky-high, while Nokia has turned into such a whipping boy in the corridors of public opinion that selling even one phone seems to come as a surprise to some.

In the end, Nokia actually shifted 106.6 million phones from July to September, which was quite a bit more than the 93.6m figure analysts were expecting. However, the real bag of hurt continues to be smartphones, with Nokia selling just 16.8 million over the three months – a huge 38% down on the same three months last year.

Total revenues were £7.9m, a drop of 13% on last year, while the overall profit/loss was £132m in the negative, a far gloomier picture than the £280m profit posted in Q3 last year.

Still, loss or no loss, the fact that Nokia sold more handsets than expected saw the company's share price jump 8%. That after Apple's share price dropped by as much as 5% in some areas despite it posting $6.1 billion in profits.

And they wonder why the stock market makes no sense to most of us.

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JanSt / MOD  Oct. 21, 2011 at 09:43

and the effort... build a brilliant Nokia N9, and then do everything humanly possible to not sell it. You gotta admire the genius behind that strategy, and forgive Nokia for slightly losing sight of the ball! It takes focus to f*ck up intentionally, but Elop's on it, so fear not.

Stelph  Oct. 21, 2011 at 11:58


bettsy  Oct. 21, 2011 at 20:51

The N9 will come to market, just with a windows OS and branded as the 800.

iampav  Oct. 21, 2011 at 21:28

As you say bettsy, clearly it would be suicidal to have a major strategy centred on WinMo 7, but release a device based on Meego with arguably better specs (resolution?) in the same markets.
The N9 rightly got credit for being a tight, finely-tuned device. As a Windows badges 800 or Sea Ray, etc, it could be there new marquee handset. It needs to be THE one to have, not a straightforward choice.

iampav  Oct. 21, 2011 at 21:30

Some predictive spelling probs. Sorry!


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