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...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Microsoft/Windows
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Nokia
Nokia's Q2 Sales Plummet 24%, Hurt by Feature Phones

By Seth Fitzgerald
July 18, 2013 10:33AM

    Bookmark and Share
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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Microsoft/Windows
1.   Microsoft Buys Recovery Service InMage
2.   'Reinvent Productivity,' Nadella Urges
3.   Microsoft Revamps Office 365 Plans
4.   Windows 7 Ends Mainstream Support
5.   Another IE-Focused Patch Tuesday


advertisement
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:
Another IE-Focused Patch Tuesday
One critical for Internet Explorer.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

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 | Small Business | 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 | XML/RSS Feed

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.