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Nokia boosts earnings but plans to lose share, cuts jobs

updated 07:45 am EDT, Thu October 21, 2010

Nokia Q3 2010 devices up, share down

Nokia today raised concerns of growing problems in its summer quarter's results despite improving its fiscal stance. The company's revenues were up five percent to the equivalent of $14.4 billion and returned back to a $565.3 million profit after a loss a year ago, but it now expected to lose market share for all of 2010 where it had insisted it would hold its position for most of the year. The warning came in spite of smartphone sales spiking year-over-year by 61 percent, to 26.5 million, and its total phone numbers climbing a small two percent to 110.4 million.

The company's new CEO Stephen Elop didn't directly explain the new caution but admitted it was a "remarkably disruptive time" and that a change of strategy was due. Nokia would have to "reassess [its] role" and how it handles the industry, he said.

As part of the strategy, the company planned to reduce the number of tools it used for Symbian smartphones, focusing its attention around Qt and HTML5, and also "consolidating operations." The move will have the company cut 1,800 extra jobs worldwide beyond those that it had already slashed worldwide.

Most of Nokia's attempts to turn around its smartphone share this year with Symbian^3 have yet to bear fruit, since the N8 only began shipping at the very end of the summer while phones like the C6 and C7 as well as the E7 are only arriving within the next few weeks.

The company's results nonetheless will likely have cost it market share, as its now second-place rival Apple sold 91 percent more iPhones in the summer than a year ago, indicating that it would have taken share from its Finnish opponent. Google's Android platform has yet to be quantified for the period but has been rapidly rising and would also have been likely to have drained Nokia's market share.



By Electronista Staff
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Comments

  1. Parky

    Mac Elite

    Joined: Oct 1999

    0

    110m

    110 Million phones and only $565 million profit, not great!

  1. starwarrior

    Fresh-Faced Recruit

    Joined: Mar 2006

    0

    Book Pumper

    Looks like they hired one.

  1. Fast iBook

    Fresh-Faced Recruit

    Joined: Mar 2003

    0

    Nokia's role...

    I think nokia's role in the current handset market is providing a notch or 2 above the bare bones stuff, with LG and pantech filling in the lower tiers. I think their real competitor is motorola, motorola has a much more diverse offering of products, and often on carrier sites i end up comparing moto & nokia vs the other fonemakers at similar price points. I think since palm is struggling, nokia could try to tap into their market share and grow or sustain from there.

    - A

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