Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Android
    • Android
    • Applications
    • Mobile

    Nokia, Facing Android, iPhone Competition, Cuts Sales Forecast

    Written by

    Michelle Maisto
    Published June 16, 2010
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Nokia, the world’s top-selling handset manufacturer, has cut back sales estimates for its mobile devices and services business for the second-quarter of 2010, as well as the rest of the year.
      Second-quarter sales, it said in a June 16 statement, are more likely to be toward the lower end of, if not below, its previously expected range of 6.7 billion Euro ($8.25 billion U.S.) to 7. 2 billion Euro ($8.86 billion U.S.).
      Nokia blamed the decrease on “the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products.” Also factoring in, said the statement, was “the recent depreciation of the Euro [which] affects Nokia’s cost of goods sold, operating expenses and global pricing tactics.”
      The phone-maker’s competitors at the high end of the market include, most notably, Apple and both its iPhone 3G S and soon-to-arrive iPhone 4, as well as Research In Motion’s BlackBerry smartphones and the growing variety of devices running Google’s Android OS.
      Nokia’s plans to retain its crown have included the introduction of the Symbian 3 OS, which will run on its newest flagship phone, the N8. With Intel, it also announced a new mobile OS called MeeGo. These introductions, however, may prove to have arrived too late.

      To view images of the Nokia N8, click here.

      “The interesting point here is that Nokia is lowering its outlook for the full year as well, meaning they recognize that Symbian 3 likely will not be enough to lift sales and that a turnaround probably won’t happen until Symbian 4 products hit the street in 2011,” noted Ken Hyers, a senior analyst with Technology Business Research (TBR).
      “Nokia sees 2010 industry volumes increasing by 10 percent, but its own volumes are expected to be flat [year-to-year], and its ASP will be lower [year-to-year] as its own device sales shift away from high-end smartphones,” Hyers added. “This is not the direction Nokia wants to see itself going, obviously, and it is likely to face intensified competition in both the mid-tier from Samsung’s Bada platform, LG and lower-cost Android devices, while the low-end competition will intensify as ZTE ups shipment volumes in 2010 and Samsung remains strong in the high end of the low-cost market.”
      Struggling through recent quarters, Nokia – which also creates a wealth of feature phones and lower-end devices for developing markets – recognized the need to step up its smartphone offerings. During the fourth quarter of 2009, research firm iSuppli reported that Nokia, shipping 126.9 million handsets, saw its best performance since the first half of 2008. And in the first quarter of 2010, analysts at Canalys noted that for the first time, touch screens were included in 50 percent of the smartphones Nokia shipped – a smart move, but still not enough to stop the recent sales forecast cut.
      For the full year, Nokia said it continues to expect mobile device volumes to be up approximately 10 percent, compared to 2009, and “continues to target its mobile device volume market share to be flat in 2010, compared to 2009.”
      TBR’s Hyers added, “I suspect that a leadership change may be in the offing if Nokia cannot soon show signs of progress and accelerate the revamp of its portfolio.”
      Nokia will report its second-quarter results, and full guidance for 2010, on July 22.

      Michelle Maisto
      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.