Nokia reports drop in sales

Nokia, renowned finish company, has recorded a significant loss during the first quarter of the year as the sales of Smartphones plunged to 51% and other mobile phone as low as 16 percent.

It has already been announced but the facts and figures been worse than expected. Nokia admitted that the facts and are discouraging and disappointing. The Finnish company, who led the mobile phone market for years, got itself
in trouble after the arrival of smart phones in the market.

Nokia has lost 1,572 million Euros in the first quarter, compared with 231 million profit earned in the same period in 2011, according to various sources.

Nokia’s net sales decreased by 29% over the first quarter of last year, to 7.354 million Euros, due to increasing competition in the mobile telephony market, which has forced the company to lower their profit margins.

Between January and March, Nokia sold 82.7 million mobile phones worldwide, 24% less than the same quarter of 2011, which has caused the sales of its devices and services division fell by 40% up to 4.246 million Euros.

Sales of Smartphones have plummeted to 11.9 million, comparing to the 24.2 million units they placed last year, due to strong competition from rivals like Apple and Samsung, who have conquered much of the world market.

Stephen Elop, CEO of Nokia, has justified the results in a statement alleging that the company is heavily relying upon the Smartphones carrying Windows operating system from Microsoft.

"In the past year we have moved into our new strategy, but we have faced competitive challenges greater than expected." He said

Elop said that the launch of new Smartphones in the range Lumia has been successful in America, but had collected lesser sales figures in UK, although it was worse than expected in other markets.

Reports now suggest that they are they are studying more cutbacks to reduce operating costs, which will add to the measures implemented in 2011, which aims to save an annual amount of one billion Euros.

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Posted by Farasat Ali on Apr 19 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry