“Nokia Oyj, the world’s biggest maker of mobile phones, had its first net loss since the company began reporting quarterly in 1996, hurt by costs related to a joint venture with Siemens AG and on weaker demand,” Diana ben-Aaron reports for Bloomberg.
“The company reported a net loss of 559 million euros ($834 million), from a profit of 1.09 billion euros in the year- earlier period. Sales declined to 9.8 billion euros. Analysts in Bloomberg surveys had expected on average a profit of 367 million euros and sales of 10.03 billion euros,” ben-Aaron reports.
“The Espoo, Finland-based company took a goodwill writedown of 908 million euros on its Nokia Siemens Networks venture. Nokia said its handset market share was unchanged at 38 percent and will stay at that level in the fourth quarter, while smart- phone sales fell. Nokia’s N97 smart phones are being stacked up against Apple’s iPhone, which has access to the biggest collection of downloadable software and media,” ben-Aaron reports. “‘It’s not a great report,’ said Ben Rogoff, who helps manage about $2 billion including Nokia shares at Polar Capital Technology Trust Plc in London. ‘With Apple set to increase its presence in Europe and the N97 going into the channels, it was a good chance for them to really show what they could do, and the bottom line is they didn’t, and there was a revenue miss.'”
“The company sold 16.4 million smart phones, it said. Last quarter’s smart-phone sales were 16.9 million,” ben-Aaron reports.
Full article here.
MacDailyNews Take: And so, pushed over the edge by Apple’s iPhone, Nokia’s inexorable slide continues.
[Thanks to MacDailyNews Reader “Graeme” for the heads up.]