Nokia Profit Down,Hints At New Platform Approach |
| Wall Street Journal - Jan 27, 2011 |
Nokia Corp. (NOK), the world's largest cellphone maker, Thursday reported a smaller-than-expected decline in net profit for the last three months of the year but said it faced significant challenges that are expected to weigh on sales and margins in the current quarter.
The poor outlook knocked the share early on, but it later rallied after comments from Chief Executive Stephen Elop that hinted at potential changes to its platform strategy, a key battleground with rivals.
Strong sales in the key end-year holiday period boosted earnings, but its estimated market share fell.
"Growth trends in the mobile devices market continue to be encouraging," said Elop, but he cautioned that "Nokia faces some significant challenges in our competitiveness and our execution."
Net profit for the three months to Dec. 31 was EUR745 million, down from EUR948 million a year earlier but ahead of analysts' expectations for EUR526 million. Analysts had expected a sharp fall in net profit as intense competition at both the premium end and low end of the handset market pressured margins at its mobile device business.
Sales in the fourth quarter increased, boosted by a higher average selling price, which was only partially offset by lower device volumes in most regions.
Read Full Article from Wall Street Journal
- Posted: 2011-01-27 09:49:41
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