Nokia shares slammed in wake of miss; Nokia CEO calls Apple iPhone ‘niche product’

“Shares of Nokia Corp. fell as much as 10% Thursday after the world’s largest maker of mobile phones reported a smaller-than-expected 25% increase in first-quarter profit and forecast the mobile-phone market to shrink in euro terms this year,” Aude Lagorce reports for Dow Jones.

“Nokia’s net profit in the three months ended March 31 improved to 1.22 billion euros, or 0.32 euro a share, from 979 million euros, or 0.25 euro a share, earned in the year-ago first quarter. The profit missed consensus forecasts calling for earnings of 1.38 billion euros, according to a survey of 29 analysts conducted by FactSet,” Lagorce reports.

“Excluding one-time costs for pensions and the closure of a plant, the latest quarter’s earnings came in at 0.38 euro a share. Sales rose 28% to 12.7 billion euros, in line with expectations,” Lagorce reports. “Nokia’s shares were last down 10% in early afternoon trading in Helsinki.”

“Analysts at Citigroup recently expressed concern about a lack of major products in the second quarter. The company has said it won’t launch a touch-screen riposte to Apple Inc. and its high-end iPhone until the second half of the year, and it’s yet to give a firm date,” Lagorce reports. “Nokia Chief Executive Olli-Pekka Kallasvuo on Thursday brushed off suggestions that Nokia needs to do more to fight back the foray of iPhone onto its home turf, calling it a ‘niche product.'”

Full article here.

MacDailyNews Take: Kallasvuo is either incapable of applying the lessons of iPod to iPhone and understanding what’s coming his way or, much more likely, he understands perfectly and, since he has no answer, is saying just what many now-defunct (if they aren’t making iPod accessories) MP3-makers said a few years ago. How many “niche” products have $100 million venture capital funds ready and waiting, exactly? Candybars and way-too-late, fake 1st generation iPhones with craptastic UI’s aren’t going to cut it from here on out, Nokia boy. This June, the bloodbath really begins, and Kallasvuo sounds like he knows it.

78 Comments

  1. Nokia CEO is damned right… as long as iPhone is not sold cheaper and in more than 75 countries of the world, including China and India.

    Locking iPhone is the surest way for Apple to miss the boat with this revolutionary product, repeating the mistake they’ve done with the Mac.

  2. I have a Nokia 6255, ok, it’s not a smartphone, but it has tons of “features” almost none of which are actually useable.

    But have to stay with it since I don’t have AT&T;where I live.

    Also have a company supplied Motorola basic cell. Has great looking keys that appear to be easy to use. Yeah, right! Far easier to type accurately on an iPod Touch.

  3. to them, iPhone is a niche. remember they sell over 100 million phones a quarter. they are getting a lot of growth in the low end cheap ass phones with tiny margins. not where i want to be in the market, but someone has to serve the low end. and what is funny is the continued belief that june is some seminal moment and the bloodbath will start. you’re delusional MDN. the new iPhone will sell really well and continue to be extremely successful, but we don’t need a bloodbath to have success. and as good as YOU think the iPhone is, there are many folks who, for whatever reason, don’t like it and never will. that’s just called consumer choice, which is a very good thing. i guess all these years of having a superior computer platform but garnishing such low mkt share has made MDN bitter. hopefully as the mkt share for the mac finally explodes, the bitterness will recede…

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