Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Nokia's Q2 Sales Plummet 24%, Hurt by Feature Phones

Nokia's Q2 Sales Plummet 24%, Hurt by Feature Phones
By Seth Fitzgerald

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Sales in China -- the world's largest smartphone market -- were down 57 percent, even though the Lumia 520 had a "strong start" in that country, Nokia said. As bad as Nokia is doing in the Western markets of Europe and the U.S., its biggest losses are coming from the increasingly important markets of India and China.
 


Finnish cell phone maker Nokia is spiraling downward even faster than before, with its second-quarter sales report showing a 24 percent decline. Sales for Q2 fell to $7.49 billion, down from $9.8 billion in the same period last year.

Analysts had expected to see Nokia's sales reach at least $8 billion for the quarter, but the company was unable to sell anywhere near the number of units required for that type of revenue. As domination by Apple and Android devices has grown, Nokia has found it difficult to successfully transition into the smartphone era.

What Is It Doing Wrong?

The biggest hurdle Nokia faces is the rough transition from feature phones to smartphones. Sales for feature phones have fallen 20 percent year-on-year and even Nokia's collection of Lumia Windows Phones has received minimal attention compared with iPhones and Android devices.

Nokia's 2010 partnership with Microsoft has only produced a limited number of Lumia smartphones, which were equal to less than 20 percent of Nokia's sales in 2012. Without getting rid of almost all of its basic handsets, Nokia is not going to be able to compete in the current smartphone market which is the primary reason for its plummeting market share and revenue.

Refreshing the Brand

Completely rethinking the Nokia brand is practically required at this point in order for the company's revenue to begin increasing again, along with its overall control of the market.

Analyst Jeff Kagan said a refresh of Nokia's brand is necessary for the company to be successful moving forward.

"[Today's] growth in wireless is not about regular handsets, it's about smartphones," Kagan told us. "What Nokia needs to do is focus on rebranding itself. Refreshing their brand. Make their brand important and connected with the marketplace. It's as simple as that, but they don't seem to understand that simple premise."

Without aiming its attention at smartphones, Nokia will be a relatively weak company within a few years, Kagan said. Even as Nokia is reporting that sales of its Lumia smartphones have doubled, feature phones still make up 88 percent of the company's sales.

Emerging Markets

As bad as Nokia is doing in the Western markets of Europe and the U.S., its biggest losses are coming from the increasingly important markets of India and China. Nokia said sales in China -- the world's largest smartphone market -- are down 57 percent even though the Lumia 520 had a "strong start" in the country.

Since Apple has continued to shy away from most Asian countries and it has been weak in China, Nokia has a prime opportunity as the third-largest cell phone manufacturer to dominate overseas. However, Nokia has no choice but to shift its focus off feature phones in order to do so.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Glass Adds Voice Access to Contacts
2.   Samsung, B&N Partner on Nook Tablet
3.   Acer Desktop Box Rides Chrome Wave
4.   Apple Stock Soars Ahead of iPhone 6
5.   HTC One M8 Windows Phone Unveiled


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.