Nokia reported a 21% year-over-year decrease in net profit, dropping from €948 million ($1.3 billion) a year ago to €745 million ($1.02 billion) in the last quarter, and a mere 31% share of the smartphone market — a significant decrease compared to Q4 2009′s 40%.
It’s not all bad, though: Nokia’s overall sales rose 6%, from €12 billion ($16.6 billion) to €12.7 billion ($17.4 billion), and even smartphone sales saw a bump from 20.8 million sold in Q4 2009 to 28.3 million in Q4 2010. However, the smartphone market has been growing a lot faster than that, and Nokia’s growth in that department simply isn’t fast enough to keep up.
Nokia’s struggle with its smartphone business is well documented; torn between Symbian, which hasn’t been evolving fast enough so far, and MeeGo, whose head Ari Jaaksi resigned in October 2010, Nokia had to change both its head of mobile solutions and CEO while trying to find a new direction for the company.
Nokia’s new CEO, Stephen Elop, didn’t shy away from admitting the company’s struggle with the smartphone business. “In Q4 we delivered solid performance across all three of our businesses and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster,” he said.
It’s not all bad, though: Nokia’s overall sales rose 6%, from €12 billion ($16.6 billion) to €12.7 billion ($17.4 billion), and even smartphone sales saw a bump from 20.8 million sold in Q4 2009 to 28.3 million in Q4 2010. However, the smartphone market has been growing a lot faster than that, and Nokia’s growth in that department simply isn’t fast enough to keep up.
Nokia’s struggle with its smartphone business is well documented; torn between Symbian, which hasn’t been evolving fast enough so far, and MeeGo, whose head Ari Jaaksi resigned in October 2010, Nokia had to change both its head of mobile solutions and CEO while trying to find a new direction for the company.
Nokia’s new CEO, Stephen Elop, didn’t shy away from admitting the company’s struggle with the smartphone business. “In Q4 we delivered solid performance across all three of our businesses and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster,” he said.
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