Nokia's revenue misses analysts' hopes
Source: Bloomberg News |
April 19, 2013, Friday
|
Print Edition
Print Edition
NOKIA Oyj, the Finnish mobile-phone maker seeking a comeback, reported its smallest quarterly revenue in 13 years as handset demand waned, missing analysts' estimates.
First-quarter sales fell 20 percent to 5.85 billion euros (US$7.6 billion), Espoo, Finland-based Nokia said yesterday. Analysts projected 6.52 billion euros, the average of estimates compiled by Bloomberg News. Mobile-phone volumes fell 25 percent.
Competition from Asian manufacturers building phones that run Google Inc's Android software is hurting demand for Nokia's basic handsets. The sales miss puts Chief Executive Officer Stephen Elop's recovery effort in doubt, as nascent demand for the company's Lumia smartphones isn't enough to offset plummeting demand for its older models.
"The lower-end mobile phone business is not doing well," Mikko Ervasti, an analyst at Evli Bank Oyj in Helsinki, said in a phone interview. "They need to start pushing their Microsoft-based Lumias into cheaper prices to gain traction in emerging markets."
The revenue was the smallest since the third quarter of 1999, when Nokia was still a more diverse company with business lines including computer monitors.
Sales of the flagship Lumias running Microsoft Corp's Windows software rose to 5.6 million units from 4.4 million in the fourth quarter as Nokia added versions. Apple Inc and Samsung Electronics Co's quarterly smartphone sales exceed 100 million units combined.
Nokia sold a total of 61.9 million mobile devices during the three months.
First-quarter sales fell 20 percent to 5.85 billion euros (US$7.6 billion), Espoo, Finland-based Nokia said yesterday. Analysts projected 6.52 billion euros, the average of estimates compiled by Bloomberg News. Mobile-phone volumes fell 25 percent.
Competition from Asian manufacturers building phones that run Google Inc's Android software is hurting demand for Nokia's basic handsets. The sales miss puts Chief Executive Officer Stephen Elop's recovery effort in doubt, as nascent demand for the company's Lumia smartphones isn't enough to offset plummeting demand for its older models.
"The lower-end mobile phone business is not doing well," Mikko Ervasti, an analyst at Evli Bank Oyj in Helsinki, said in a phone interview. "They need to start pushing their Microsoft-based Lumias into cheaper prices to gain traction in emerging markets."
The revenue was the smallest since the third quarter of 1999, when Nokia was still a more diverse company with business lines including computer monitors.
Sales of the flagship Lumias running Microsoft Corp's Windows software rose to 5.6 million units from 4.4 million in the fourth quarter as Nokia added versions. Apple Inc and Samsung Electronics Co's quarterly smartphone sales exceed 100 million units combined.
Nokia sold a total of 61.9 million mobile devices during the three months.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
