Nokia Q4 profit seen dropping, strategy in focus
Nokia is expected to post a third profit fall in a row on Thursday with investors seeking clues on how the handset maker can challenge smartphone powerhouses Apple and Samsung and also recover lost ground at the cheaper end of the market.
January 27, 2011 / 09:54 IST
Nokia is expected to post a third profit fall in a row on Thursday with investors seeking clues on how the handset maker can challenge smartphone powerhouses Apple and Samsung and also recover lost ground at the cheaper end of the market.
The phone market has recovered from a slump in 2009 when the global economic slowdown dampened demand for the latest gadgets. Demand this year has surged for new smartphones like Apple's iPhone 4 and Samsung's Galaxy S. But Stephen Elop, who took over as Nokia's chief executive last September, is expected to report a 24% drop in underlying earnings per share for the October-to-December quarter to 0.19 euros.The world's top handset maker by volume and sales has lacked a hit smartphone since the N95, which was launched in 2006, predating Apple's entry into the cellphone market.Chinese and other manufacturers are also eating into Nokia's dominance in low-price emerging markets.Elop is due to unveil his plan to revamp the strategy of the struggling phone maker by next month.Smartphone makers Apple, RIM and HTC Corp have reported strong results for their latest financial quarters, while LG Electronics and Sony Ericsson -- more direct rivals to Nokia -- sold less phones in the quarter than expected."LG and Sony Ericsson missed their fourth quarter handset volume consensus notably: in our view, Nokia's market share rebound in Europe is a contributing factor," said analyst Tero Kuittinen from MKM Partners. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
