Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

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


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
04/19/2012 | 03:21pm CEST

By Sven Grundberg


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; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NOKIA OYJ
06/28 COMPTEL CORPORATION : Arbitral tribunal has confirmed nokia's redemption right r..
06/28 VODAFONE PARTNERS HMD GLOBAL; ROLLS : Vodafone customers purchasing the newly l..
06/28 NOKIA OYJ : and China Mobile show power of 5G to transform emergency patient car..
06/28 NOKIA OYJ : shows how 4.9G technology will reduce network latency on the path to..
06/27 NOKIA OYJ : Announces Final Results for its Tender Offers and Consent Solicitati..
06/22 NOKIA OYJ : and Infracapital to bring high-speed fiber broadband service to unde..
06/20 NOKIA OYJ : launches portfolio of digital health products designed to inspire pe..
06/20 NOKIA OYJ : Bell Labs first to show use of ultra-low latency 10G PON for mobile ..
06/19 NOKIA OYJ : demonstrates the future of VR advertising and e-commerce with its ow..
06/15 HMD bets on emotional connect for Nokia`s success in India
More news
Sector news : Phones & Smart Phones
12:17a Apple's iPhone turns 10, bumpy start forgotten
06/28DJSAMSUNG ELECTRONICS : to Invest Millions in South Carolina Factory -- Update
06/28DJSAMSUNG ELECTRONICS : to Invest $380 Million in South Carolina Factory for Home ..
06/27 U.S. antitrust lawsuit against Qualcomm to proceed, judge rules
06/27DJSAMSUNG ELECTRONICS : Revives Galaxy Note 7 With New 'Fandom Edition'
More sector news : Phones & Smart Phones
News from SeekingAlpha
06/28 FRONTIER : Getting Ready For A Turnaround?
06/15 WALL STREET BREAKFAST : Central Bank Fun Day
06/14 Nokia's fast routers pursue Web-scale customer base
06/14 Spark New Zealand, Nokia team on network upgrade partnership
06/13 Nokia, Technicolor partnering on VR content creation
Financials (€)
Sales 2017 23 355 M
EBIT 2017 1 686 M
Net income 2017 2,99 M
Finance 2017 3 332 M
Yield 2017 3,24%
P/E ratio 2017 -
P/E ratio 2018 32,18
EV / Sales 2017 1,25x
EV / Sales 2018 1,23x
Capitalization 32 624 M
More Financials
Duration : Period :
Nokia Oyj Technical Analysis Chart | NOKIA | FI0009000681 | 4-Traders
Full-screen chart
Technical analysis trends NOKIA OYJ
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 5,99 €
Spread / Average Target 7,1%
Consensus details
EPS Revisions
More Estimates Revisions
Rajeev Suri President & Chief Executive Officer
Risto Kalevi Siilasmaa Chairman
Monika Maurer Chief Operating Officer
Kristian Pullola Chief Financial Officer
Marcus Weldon Chief Technology Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NOKIA OYJ24.24%37 030
MEITU INC--.--%4 581
INTOPS CO LTD--.--%185
DORO AB5.66%155
NUMEREX CORP.-28.51%103
More Results