Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  NASDAQ OMX HELSINKI LTD.  >  Nokia Corp    NOKIA   FI0009000681

NOKIA CORP (NOKIA)

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Nokia CEO Aims To Drive Down Prices Of Its Flagship Phones

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/19/2012 | 03:21pm CEST

By Sven Grundberg

Of

Stephen Elop, the chief executive of struggling handset maker Nokia Corp. (NOK) said the company aims to drive down the prices of its new Lumia family of mobile phones so as to compete better against Asian rivals on emerging markets.

Speaking to reporters after revealing the company suffered losses approaching EUR1 billion in the first three months of the year, the CEO said Nokia will deepen its cost cutting, and sell off non-core assets as it strives to recover its lost profitability.

Nokia has been losing market share in Western markets since the introduction of Apple Inc.'s (AAPL) iPhone in 2007, swiftly followed by other high-end smartphones using Google Inc.'s (GOOG) mobile phone software Android produced by Asian manufacturers.

Now its bread-and-butter revenue from sales of basic phones in Asia-Pacific, the Middle East and Africa is under threat from the arrival of cheap Android-powered smartphones at the low-end of the market as well.

"The price point of Android devices from a variety of manufacturers is quickly being pushed down," Elop said, adding there are gaps in Nokia's line-up of phones that it needs to fill swiftly.

One of the main competitors on emerging markets is Samsung Electronics Co. Ltd. (005930.SE), a company that most observers say will surpass Nokia as the world's largest maker of phones by volume this year.

"Samsung plays a very strong role in this space and is one of our a principal competitors," Elop said.

Nokia will introduce new phones with enhanced technical capabilities for emerging markets in the coming weeks, Elop said. And it will focus on introducing cheaper handsets in its flagship range of Lumia smartphones, running Microsoft's Windows Phone operating system.

"A very clear part of our strategy is to drive the prices of our Lumia devices deeply down, so we can compete effectively," Elop said, but he declined to specify exactly when Nokia plans to unveil these new cheaper Lumia phones.

Nokia's net loss widened to EUR929 million from a EUR344 million net profit for the same quarter last year, against expectations for a EUR554 million loss. Revenue dropped 29% to EUR7.35 billion.

"Clearly we're disappointed with our performance in the first quarter," Elop said, adding however that results weren't all bad.

In the first quarter Nokia sold more than 2 million of its new Lumia devices at an average selling price of approximately EUR220.

"The actual sales results [for the Lumia devices] have been mixed," Elop said "We are exceeding expectations in the U.S., but in other markets like in the U.K. for example, its harder," he added.

Elop added that it plans to launch a second wave of Lumia advertising in the second quarter.

-By Sven Grundberg, Dow Jones Newswires; +46-8-5451-3098; sven.grundberg@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NOKIA CORP
03/28 Ericsson's provisions raise concern over health of business
03/28 Ericsson's provisions raise concern over health of business
03/27 NOKIA : malware report reveals new all-time high in mobile device infections and..
03/23 NOKIA : has filed its annual Form 20-F for 2016 with the U.S. Securities and Exc..
03/23 Nokia completes first pre-standard 600MHz LTE call using commercially-availab..
03/22 NOKIA : has received all necessary authority approvals for Solutions and Network..
03/22 NOKIA : 100G optical portfolio supports massive growth for Jio's pan-India 4G ne..
03/22 Nokia Announces Final Results for its Offer to Purchase Euro and Dollar Notes
03/22 NOKIA : Announces Final Results for its Offer to Purchase Euro and Dollar Notes
03/21 NOKIA : and Facebook break subsea spectral efficiency records in transatlantic f..
More news
Sector news : Phones & Smart Phones
07:52pDJSAMSUNG ELECTRONICS : Aims to Get BAck on Top With Galaxy S8 Launch--Update
07:16aDJGALAXY S8 FIRST LOOK : Samsung Goes to Greater Lengths to Impress
07:14aDJSAMSUNG ELECTRONICS : Launches Galaxy S8 Smartphone
03:16a SAMSUNG ELECTRONICS : With new phone due, Samsung dials down on safety message
03/28DJSAMSUNG ELECTRONICS : Latest Has Heavy Burden -- WSJ
More sector news : Phones & Smart Phones
News from SeekingAlpha
03/23 COVERAGE UPDATE : Is Snap A Buy, Alphabet A Hold?
03/20 Delta Air Lines Is Cheap - Cramer's Lightning Round (3/17/17)
03/17 WALL STREET BREAKFAST : G20 Finance Meeting Gets Underway
03/17 Nokia splits mobile networks group
03/15 Nokia, TIM extend cooperation in Brazil
Advertisement
Financials (€)
Sales 2017 23 293 M
EBIT 2017 1 488 M
Net income 2017 79,1 M
Finance 2017 3 424 M
Yield 2017 3,60%
P/E ratio 2017 193,46
P/E ratio 2018 27,24
EV / Sales 2017 1,10x
EV / Sales 2018 1,08x
Capitalization 29 017 M
More Financials
Chart NOKIA CORP
Duration : Period :
Nokia Corp Technical Analysis Chart | NOKIA | FI0009000681 | 4-Traders
Full-screen chart
Technical analysis trends NOKIA CORP
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 5,42 €
Spread / Average Target 9,0%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Rajeev Suri President & Chief Executive Officer
Risto Kalevi Siilasmaa Chairman
Marc Rouanne Chief Operating & Innovation Officer
Kristian Pullola Chief Financial Officer
Kari Henrik Stadigh Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NOKIA CORP9.31%31 376
COOLPAD GROUP LTD-8.75%473
DORO AB-1.89%135
NUMEREX CORP.-39.05%88
RAONSECURE CO LTD--.--%86
DIGIA OYJ-10.79%64
More Results