Nokia cuts the performance expectations again

July 5, 2010 - PRLog -- Faced with Google Android and apple iPhone, cell phones are increasing the pressure of competition, and product portfolio tended to low profits of the cell phone and the dollar, euro low-end phones giant nokia global recently that in the second quarter, down with annual revenues and profits are expected. This is the second time this year nokia cut expectations. Company's chief financial officer, timothy, she says, MAO low-end market competition "painful" in the third quarter, "will continue to face challenges. But he did not give the quarter of specific expectations.

Product release is disappointing, while share dropped quickly

Nokia says, in the second quarter of the year and mobile department previously expected profit will be located in the scope of referral or slightly lower than previously expected, the second quarter profit in the department of cell phone 12%, 9-11-13 percent annual profit margins in, In the second quarter of cell phones and service revenue will be more than 67 billion euros, This year, according to the income of the market share will be slightly lower than in 2009-Cheap cell phone.

According to Gartner said, market research firm in the first quarter of nokia smartphone Symbian OS the market share in the same period last year, has dropped from 44.3% to estimate, But the iPhone market share from 10.5% growth, to take up to 1.6% system from 9.6%. Analysts say the latest touch screen, nokia smartphone N8 is expected to be launched in the third quarter, but the equipment listed too slow-Wholesale cell phones, and may still be disappointing.

Nokia, the lower performance looking again at Helsinki's shares fell nokia 9% to euro/shares for 7.22 2009 on March 9th, the lowest since. Stock prices dropped to about market that nokia 270 million euros ($333 billion), not far below the $2,400 apple, and below the RIM of $344. Ubs analysts gareth • Jenkins then nokia's rating from the "buy" from "neutral". "We think the profit warning of nokia's main problem is lack of competitive products appear to high-end market price pressure, we believe that investors will not be on the company's new product with confidence." Jenkins studied in a report.

Symbian unattractive, less competitive

Nokia program recently launched the latest version of the flagship smartphone, but Twitter Gravity application developers, Europe, SuHe said recently, the force of nokia smartphone market prospect in far behind, Google apple etc. Reason is lack of nokia mobile platform for developers. SuHe said, "because you're not sure nokia smartphone development prospect, and what is this for small business, for nokia cellular phone design application difficult."

For software developers can provide a good platform, in the face of apple iPhone nokia and Google Android products, the market competition of performance is not satisfied. Gartner analysts Nick Jones said, "Symbian OS need to provide a more competitive platform of attracting customers, because the early part of the most likely to download user should use cell phone software. We are now waiting for Symbian 4 version of the launch. We expect to 2011, the market competitiveness of nokia will probably a change."

Emerging market share, the application of preemptive is unlikely. Behind

Since the apple on July 11, 2008 launched since the application of nokia, apple store market shares plummeted 51%, value and shrunk dramatically. Nokia, the cell phone, although have not revealed any number of applications, but the company says every program for 1.7 million downloads. Gartner said, nokia, analysts Jones estimates for application number because "the secret is still a small number".

From the cases so far, nokia application number and take far behind an apple. According to statistics, apple store now has more than application software; the Android 225,000 has more than 70,000 applications. According to the apple users download, application is more than 50 million. Nokia smartphone to 68 million users Ovi applications store opened the iPhone, but habit of development tools software developers say nokia is comparatively backward. Many developers have to take the RIM and blackberry. According to Morgan Stanley analyst Katie leisure, at the end of 2011, the expected number of cell phone users’ worldwide iPhone is expected to reach 1 million. Apple is gradually moved with iPhone foundation of Nokia Empire.

Except in high-end phones on the market to give up to blackberries, and iphone, nokia in the low end market is also facing China and other parts of the manufacturers of competition. According to the first financial daily, China's ministry of commerce in Bangladesh, business and published recently in web information; China consistently popular Bangladesh, monthly sales market 80% recently. Foreign brands, samsung okefenokee, Siemens, LG danger facing delisting. Bangladesh consumers prefer to choose inexpensive Chinese local brands- http://www.goodscool.com/china-wholesale-electronics/Mobi... . Actually, the cell phone market structure similar to Bangladesh, are India, Pakistan, Indonesia and south and Southeast Asia etc emerging markets. Therefore, in the low end market, the challenges of nokia are becoming increasingly larger.

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