Mobile phone business saw an increase of 3 per cent compared to the last quarter on account of better sales of low cost phones. However, smartphone success still remains elusive for Nokia.
The world's top mobile phone maker Nokia reported a 40 per cent plunge in second quarter net profit on Thursday to 227 million Euros, but maintained its earnings forecast for key devices and services unit.
From April to June, Nokia posted a net profit of 227 million Euros ($290 million), down 40 per cent from 380 million Euros (about Rs 2,300 crore) for the same quarter a year earlier.
Nokia said its net sales were up 1 per cent on a year to year basis to 10 billion Euros (about Rs 60,000 crore), and that sales of its devices and services unit were up 3 per cent on a year to year basis, but down 2 per cent, calculated year to year in constant currency.
"Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our mobile phones business, helped by an improving line-up of affordable models."
The only silver lining in Nokia's portfolio was Navteq, Nokia's geo-location information subsidiary, which registered a 71 per cent increase in net sales.
The company's devices (mobile phones) business also saw an increase of 3 per cent compared to the previous quarter on account of better sales of low cost phones.
However, smartphone success still remains elusive for Nokia. The company's mobile phone market share dipped to 33 per cent compared to 35 per cent last year. Nokia's device business registered negative growth in developed markets of Europe, the Middle East and China, but saw bullish growth in Asia Pacific and in Latin America. NSN (Nokia Siemens Network) registered a 5 per cent decline in net sales despite some recent orders.
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