Nokia's smartphone problem

FAQs

1. Why is Nokia’s smartphone market share declining?

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2. What challenges is Nokia facing in the smartphone market?

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   • Component shortages, low sales of the N-97 device, and a lack of strong competition in the US market.

3. What was Nokia’s net loss in the third quarter of 2009?

   • $832 million, primarily due to losses in its telecommunications equipment unit.

4. Did Nokia meet analysts’ expectations for handset shipments in the third quarter?

   • Yes, they shipped 3 million more handsets than anticipated.

5. What will happen to Nokia’s overall global market share in 2009?

   • It is expected to remain unchanged at around 38%.

6. See more : T-Mobile to drop prices on smartphone plans

   Why is Nokia’s average selling price for mobile phones decreasing?

   • Increased competition in the low-end market, especially in developing countries.

7. What are Nokia’s strategies to regain market share in the smartphone segment?

   • Developing new competitive products and expanding into adjacent market segments.

8. What is Nokia’s Ovi platform?

   • A services business aimed at complementing its handset offering.

9. Is Nokia venturing into the PC market?

   • Yes, they have announced the release of a Netbook product.

10. Are Nokia’s efforts in adjacent market segments expected to offset losses in its handset business soon?

    • No, it’s unlikely at this point.

11. What caused Nokia’s gross profit margin to narrow in the third quarter?

    • Declining average selling prices and increased competition.

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    What was Nokia’s operating margin for cell phones in the third quarter?

    • 11.4%, a decrease from the previous quarter and last year’s same period.

Summary

Nokia’s third-quarter earnings report highlights mixed results, with a net loss in its telecommunications equipment business offset by better-than-expected handset shipments. However, the company’s market share in the growing smartphone segment continues to decline, raising concerns about its long-term competitiveness.

Nokia attributes its smartphone losses to factors such as component shortages and intense competition from Apple and Research In Motion. Despite releasing the N-97 device, Nokia’s sales have been low compared to its rivals. Additionally, Nokia’s presence in the lucrative US smartphone market remains weak.

To address these challenges, Nokia plans to introduce new products and expand into adjacent markets. However, it remains unclear whether these strategies will be sufficient to regain market share in the fiercely competitive smartphone landscape.

As the global economy improves, overall mobile phone sales are expected to rebound. However, Nokia faces the daunting task of maintaining its dominance while navigating the rapidly evolving smartphone market. The company’s ability to develop compelling smartphone products and penetrate new markets will be crucial to its future success.

For the latest updates on Nokia’s performance and upcoming products, please visit their official website.

Source: https://anytimesoftcare.com
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