10-15-2004, 09:30 AM
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Editor Emeritus
Join Date: Aug 2006
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Earnings Drop 20% For Nokia
"Nokia, the world's largest mobile- phone maker, said profit may drop for a second straight quarter. Earnings fell 20 percent in the three months ended in September because the company cut prices to regain market share. Earnings per share may fall to between 16 euro cents (18 U.S. cents) and 18 cents in the fourth quarter from 25 cents a year earlier, Jorma Ollila, chief executive officer of Espoo, Finland-based Nokia, said in a conference call. Nokia's profitability is declining as the company fights to win back customers. Samsung Electronics Co., Motorola Inc. and Sony Ericsson Mobile Communications Ltd. took market share by incorporating cameras in handsets earlier than Nokia. Nokia's operating profit fell to 13.4 percent of sales in the quarter just ended, the lowest since the second quarter of 2003."
According to this article, Nokia's market share dropped by 6% to 29.7%. Combined that with a 20% drop in earnings, and I would say you have a company that is in serious trouble. It's no wonder they are slashing prices, and racing to add new features to their devices, like cameras and clam-shell design.
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