Nokia profits and market share still on the slide

Nokia profits and market share still on the slide

First the good news, now the bad – and that's if you consider Nokia's partnership with Microsoft a good thing to begin with.

Finland's finest has just published its financial figures for the three months ending in March, and with all the key numbers stagnant or on the slide, it shows just how big a job lies ahead.

To its credit, Nokia's overall phone sales were up on the same period last year, albeit by only a single percent, though they were down 18% on Q4's totals last year – no doubt something to do with Christmas, we reckon.

However, the number that really matters to any serious Nokia-watcher is the all important smartphone market share, and even the most blinkered of supporters must surely now recognise that Symbian's number is up.

Nokia shifted 24.2 million smartphones in the first quarter, and while that's actually 13% more than last year, the smartphone market overall has grown at a far faster rate.

The upshot is that Nokia's global smartphone market share for the quarter now sits at just 26%, and when you consider that the figure was 31% in January, the real picture right now is probably in the low 20s to balance that figure out. To think that just a year ago Nokia held as much as a 41% market share in the smartphone game.

Profits, meanwhile, have dropped 14% from the previous quarter and 35% year-to-year – probably the most alarming figure of all.

Yet Nokia boss Stephen Elop warns that the worst may be yet to come: “Following a solid first quarter, we expect a more challenging second quarter,” Elop said in a statement.

“However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance.”

Those Symbian smartphones Elop is referring to are the newly launched E6 and X7, which now look to have an awful lot of Nokia's short-term fortunes resting on their mobile shoulders.

Via Nokia (PDF)

Add a comment
 1 comment

JanSt / MOD  Apr. 21, 2011 at 20:26

For clarification:
"share" in this context means share of all units shipped. It does NOT reflect the share of the so-called "installed" base - i.e. all phones around and in use with the OS in question. In those terms Nokia rules completely. The problem is, of course, that they will have to keep existing users happy to attract new ones.
As far as predictions are concerned: no one knows exactly at what point a tipping point will occur (companies and 'analysts' such as Gartner etc spend millions of client bucks on that question - they are NOT doing it for us, the end-users -, but for investors ;) )
When will, e.g., the Android growth begin to slow/plateau? Simple maths says the current growth rates are not sustainable - the competition does not rest. And there are only so many users. Meanwhile alternatives are developed (such as Android, which, only 3 years ago was a nobody. hp are not letting webOS die etc etc
Then there is the issue that iOS is basically 1 phone, while Android is dozens and dozens. Android itself does NOT guarantee success - Android phones have flopped massively in the OS's short history.
No one knows how WP7 (and up from there) will develop. If Nokia's involvement proves successful, other members of Microsoft's alliance may well jump another bandwagon... and so on and so on...
It will be interesting to see how this goes on...and on...
Nokia will hardly 'disappear'. Or maybe they will.


You don't need an account to comment. Just enter your email address. We'll keep it private.