subject: Nokia May Have A Loss In The Third Quarter [print this page] Nokia will release third-quarter earnings today. Whether the smart phone business is able to recover will be widespread concern of the analysts and investors.
The analysts expected, due to the poor sales of smart phones, Nokia's third quarter revenue will have a rare loss. In the smart phone market, Nokia's glory is being overshadowed by Apple and Google. But this giant of course will not fold its hands for capture. It will launch a new mobile phone that first used Microsoft's Windows Phone mobile operating system next week in London.
In February Nokia signed a cooperation agreement with Microsoft. As the sales of the mobile phones that use its own Symbian operating platform models are not satisfactory, Nokia's smart phone sales dropped sharply. The analysts expect Nokia's smart phone sales in the third quarter to be 15.9 million units, a reduction of 40% over the previous year. Despite the significant reduction of price in early July, Nokia still failed to reverse this trend.
The analysts expected that dragged down by the weak sales of smart phones, Nokia's operating loss in the third quarter will reach 230 million euros, while the operating profit of the last quarter was 391 million euros.
Nokia wants to use Microsoft's operating systems to win the favor of software developers like Apple and Google. So far, Windows Phone's success is still very limited. The market share is only 2 to 3%. While Google's Android's market share is as high as 50 percent and Apple s market share is about 15%.
The sales of Apple's iPhone in the third quarter fell to 17.1 million units. The investors were disappointed. But the sales of this smart phone are still ahead of Nokia. Apple's new iPhone 4 is breaking the sales record of before. Nokia is not rushing to introduce new mobile phones, even though the company has established close cooperative relations with Microsoft. Fujitsu, HTC, Samsung and other competitors have introduced new phones equipped with the latest operating system Windows Phone "Mango".
In addition, in the Christmas holiday season, Nokia will face the impact of Samsung's new smart phone Galaxy Nexus. This is the first smart phone that uses the latest Android operating system. Although the outlook of the consumer spending in the past few weeks is even bleaker, analysts have fine-tuned the forecast of the mobile phone sales in the fourth quarter. The analysts expect the mobile phone sales fourth quarter will continue the trend of the past, a growth of 12%.
