Representatives from Nokia changed its outlook to reduce the mobile phone market from 5% to 10%. Nokia has announced a fall in first quarter profit by 82% due to decline in demand for new phones caused the economic crisis.
What do you think? say
Demand for new vehicles fell around the world. Because of the financial crisis, consumers as in mature markets and developing countries, longer use the phone and buy a cheaper model. Average price of sold Nokia phones fell to 65 euros, compared with 71 euros in the fourth quarter of last year. The company expects that the new phones will help to correct this situation. Market share was 37% for the first quarter And in 2009 the current profit rate decreased by half and even up to 10, 4%, it is not However, still higher than 5 major competitors Nokia. Director General of Nokia Olli-Pekka Kallasvuo convinces investors that that the mobile phone market is healthy. He points out that distributors significantly reduced inventories in the first quarter. And it had a negative impact on sales performance of the company. At the same time, according to experts Nokia, is makes the picture of demand in the second quarter, more predictable. Net Finnish giant's earnings dropped from a 22 billion euro in the first quarter of last year to 122 million euros in the current. Sales fell by 27% to 9, 3 billion euros including due to the actual termination of consumer credit banks. In the first quarter, the company shipped 93, 2 million new vehicles, which is 19% lower than last year and 18% less than last quarter of 2008. Earlier it was reported that under a plan to reduce Nokia plans to cut costs 1, 7 thousand employees worldwide.
News by topic:
Previous and next news :