Bad quarter for Nokia.
Nokia reported earnings for the first quarter of 2010 on Thursday, and wow: it’s pretty cringe-worthy.
Wall Street is all about the numbers, and Nokia missed *nearly* all of ‘em:
- Profits were 349 million euros on sales of 9.52 billion – analysts projected 370 million euros on sales of 9.81 billion. Oops.
- 107.8 million devices were shipped, short of estimates of 110 million
- Nokia full-year profit forecast for Devices and Services division down to 11-13%, from 12-14%
- Average selling price fell to 155 euros, due to price cuts (down 18% from last year)
- Market share dropped to 33%, from 35% last year
- Symbian^3 will start rolling out third quarter of 2010, instead of Q2
I can’t say I’m too surprised by the findings, especially the price cuts. Nokia’s smartphones were dirt cheap this past quarter, with lots of deals at Dell and Amazon.
It’s worth mentioning that the problem isn’t a weak smartphone market: Apple broke its own records in the first quarter, selling double the amount of iPhones from the previous year. Nokia still has two problems: first, a lack of compelling smartphones in the first quarter, and second, a lack of *decent* phones on an actual (US) carrier. That latter one, unfortunately, is something that Nokia has never managed to get right.
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