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Thursday, 27 January 2011 - Nokia warns of weak start to 2011 as profit slips
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    Read more with google mobile : Nokia warns of weak start to 2011 as profit slips

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Nokia warns of weak start to 2011 as profit slips Reuters - Friday, January 28 Send IM Story Print By Tarmo Virki, European Technology Correspondent HELSINKI - Nokia, the world's top cellphone maker by volume, reported its third profit fall in a row and warned of a weak start to 2011 as it lost yet more ground in the all-important smartphone market. Nokia shares dropped 6 percent on Thursday after it said first quarter operating profit margin at its phone unit would drop to 7-10 percent in the period January to March from 11.3 percent last quarter, missing analyst forecasts of 10.2 percent. The phone market has recovered from a slump in 2009 when the global economic slowdown dampened demand for the latest gadgets, with demand for new smartphones like Apple's iPhone 4 and Samsung's Galaxy S surging. However, Nokia, the world's top handset maker by volume and sales, has lacked a hit smartphone since the N95, which it launched in 2006 before Apple stormed onto the market. Nokia's share of the smartphone market fell to 31 percent in the fourth quarter from 38 percent in the previous quarter. "What scares the market is the rapid share loss that Nokia seems to have experienced in the fourth quarter," analyst Nicolas von Stackelberg from Macquarie Research said. "Even more dramatic than the share loss in smartphones is the slide in market share in standard phones. They seem to be affected by a massive attack in the lower price tiers, in the non-smartphone business," he added. Chinese manufacturers are eating into Nokia's once dominant position in low-price emerging markets. Nokia's sales of non-smartphones fell 10 percent from a year ago, dropping for a second quarter in a row, at a time when the overall market grew. DARK DAYS Nokia's underlying earnings per share fell to 0.22 euros, roughly in line with an average analyst forecast of 0.19 euros in a Reuters poll, when excluding a 2.5 euro cent boost from lower-than-usual taxes. Stephen Elop, who took over as Nokia's chief executive last year, warned the company faces some significant challenges in its competitiveness and execution. Nokia said Elop would unveil his plan to revamp the strategy of the struggling phone maker on February 11. "These results point to the daunting task ahead of Elop in 2011," Geoff Blaber from CCS Insight said. "Disappointing total volume, including smartphones, emphasizes that these are dark days for Nokia." Recommend Send IM Story Print Related Articles US-TECH Summary Reuters - 38 minutes ago Facebook denies to launch branded phones with HTC Reuters - 2 hours 1 minute ago Nokia warns of weak start to 2011 as profit slips Reuters - 2 hours 26 minutes ago Sony takes on DS and smartphones with new handheld Reuters - 2 hours 44 minutes ago Lenovo, NEC in Japanese joint venture to sell PCs Reuters - Friday, January 28 News Search Top Stories Baghdad car bomb kills 37 mourners Rosneft, Exxon ink Black Sea exploration deal Rare Sumatran tiger gives birth to three cubs US Fed stands firm on stimulus deal Cruz, Bardem baby boy 'doing great': spokeswoman More Top Stories » Related Full Coverage Personal TechnologyMobile phones & personal gadgets All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Bad eating can give you depression: study T. rex still king, says dino study Cruz, Bardem baby boy 'doing great': spokeswoman Marooned Miami bay piano strikes odd note BBC World Service axes five language services More Most Viewed » More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2011 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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