Nokia seen struggling in early days for Windows Phone

Nokia seen struggling in early days for Windows Phone

* Q4 report due around 1100 GMT time

* Underlying profits seen diving

* Windows Phone takeup eyed

* Siilasmaa seen taking over as chairman

Nokia which holds the mark of the world’s largest cellphone maker by volume, is expected to remain scarcely in the black during the fourth quarter of this year, with its new Windows Phone models yet to compensate for headfirst sales of its legacy smartphones.

Nokia, as reported by Reuters, is expected to report a fourth quarter earnings per share declining 82 percent from last year to 0.04 euros and to estimate a weak start to 2012, when the company releases its results at around 1100 GMT.

Nokia last February unveiled a high-status strategy shift to Microsoft’s Windows software on its smart phones in a bid to rival to Apple and Google’s Android OS.

However, the company’s fourth-quarter smart phone sales are seen down by 33 percent from a year ago to 18.7 million handsets, reports by the Reuters poll.

Analysts said that Nokia was expected to sell only 1 to 2 million off of the two Windows Phone models in the quarter, with exact figures giving little indication on whether Microsoft software could battle against Apple and Google.

NEW CHAIRMAN

A research firm, Kantar Worldpanel ComTech has said on Wednesday that the Windows Phone share in all of nine key markets it measures remained at less than 2% in the fourth quarter, despite the high-status launch from Nokia.

In addition to the quarterly numbers, Nokia’s board of trustees is expected to propose a cut in the dividend of the company and to name Risto Siilasmaa as the next chairman of the company to replace long-time leader, Jorma Ollila, who is due to step down in May.

Siilasmaa is a 45-year old entrepreneur, who has been a Nokia board member since 2008. He is known as the founder of the software security company, F-Secure in Finland but has a lower profile outside Finland.

In the meantime, the majority of the phone makers in the world that have reported their record so far have disappointed the market–losing the large market share to the Cupertino based company,Apple, whose shares of 37 million phones beat expectation.

An analyst by name, Neil Mawston from the Strategy Analytics said “the record quarter from Apple suggests Nokia’s … results may have limited room for upside.”

Nokia’s network equipment division could also disappoint after its bigger rival Ericsson surprised the market with a 50 percent fall in its core profits — and cautioned telecoms operators were likely to remain cautious of how they spends throughout the coming months.

Reuters contributed to this article.

 

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Olawale Daniel is a business builder and psychologist, a network marketing professional, a world-class motivational speaker, a successful internet entrepreneur and a digital media strategist interested in all things mobile and digital — start-ups, media, branding. He started TechAtLast back in 2010 as a platform to quench his thirst for latest technologies. As a motivational speaker and author, Olawale has published several motivational and personal development books and he's currently working on "SUCCESS AHEAD - Don't Quit" which is billed to hit the stand by Q4 of the year. He writes regularly on his personal website on motivation and personal lifestyle and tips for network marketing success, OlawaleDaniel.com. His latest book on How to Sponsor More People in Your Network Marketing Business is still one of the best sellers in its category. He's presently working as a Health and Wellness consultant at BURN SLIM TRIM Inc., a firm that helps people regain their perfect lifestyle through state-of-the-art recent discoveries way back from nature. He's also the brain behind FOBCourse, a business university for startup entrepreneurs in Africa.

4 COMMENTS

  1. Yes Nokia are struggling, & i dont know if you are aware of this but Microsoft Paid Nokia $250 Million to launch Windows Phone.

    Well that balances the struggle of Nokia 🙂

  2. Nokia seems to be doing good with Lumia series handsets. The recent report says that the Lumia series handsets are outranking HTC windows phone 😉

    • That is a good news for the Nokia savvy guys out there. I also love Nokia product as well because of the rigidity

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