Deathwatch: Nokia's profits fall

23 July 2010

deathwatch The mobile phone market is a particularly vicious one at the minute what with everyone trying to kill the iPhone. A lot are leaping into the arms of various HTC phones and Blackberry smartphones, leaving a lot of the old guard really struggling to keep up with the pace.

One such company is Nokia who are currently watching the arse fall out of their profits. The Guardian report that the handset maker's profits have fallen 40% in the second quarter of 2010.

One of Nokia's problems seem to be that there's not much money in mere handsets and they keep cutting the prices of higher-end units in a bid to make them more attractive to consumers. The consumers, it seems, are just not interested.

Bitterwallet - Nokia 2630

As a result, chief executive of Nokia, Olli-Pekka Kallasvuo is getting a lot of heat and rumours suggest that he's going to get the chop soon with shareholders already looking for a replacement. They've given themselves the tall order of finding a "European Steve Jobs".

Kallasvuo hit out against the rumours saying: "There has been a lot of speculation on my position, on myself, during the last couple of weeks and that is not good for Nokia and must be brought to an end one way or another."

"At the same time, I'm not in a position here and now to really shed any more light on the topic so I guess this is a no comment. I really concentrate now on the task at hand."

Nokia are now hoping that their fortunes will better with the new Nokia N8 smartphone, despite the release being put back until later in the year. While Nokia's stock falls, Apple is reporting a best ever quarter.

Of course, it is a little early to be calling the death of a company that still makes one in every four phones sold in the world (thanks largely to cheaper handsets selling well in developing countries) but this trend is an alarming one for a company in the middle of one of the largest growing markets.

TOPICS:   Technology   Mobile   High Street News


  • Ballu
    The N8 needs to kick some Ar5e
  • Kev
    I had the misfortune of having to setup a Nokia 5800 for a manager at work who thought it was the greatest smartphone he had ever bought. The interface was clunky, settings were unobvious and if it was my phone it would of gone out of the window at high speed. I don't think Nokia gets it, im sure the phone feature work really well it's a shame the rest of the phone is a total dogs dinner to setup. (In comparison to Iphone or Andriod).
  • Richard
    Deathwatch?! Did you even read your own title?! Profits fall... I.e. they are still making profits. Nokia are the worlds biggest mobile phone manufacturer who regularly top 30% Market share in Europe and, although their us Market share has fallen, 7% is certainly not worthy of deathwatch!
  • Alexis
    Have you forgotten how many big, seemingly invincible companies have gone under over the last couple of years Richard?
  • bob
    I owned a 5800 and I can't see how you could get confused setting it up? It was my first proper smart phone and it all seemed obvious to me...
  • Stu
    Well, they may have finally got it right by going back on their word and jumping into bed with Google. Whilst we don't like monopolies, I think it's going to take the power of something like Android to take away the power of Apple
  • Matt P.
    Hi, I'm agree with your opinion.
  • ivan_the_inebriated
    They're more reliable than other big brands but they're overpriced for what they are. This is the problem with a lot of mobile phones nowadays. They're focused on contract phones and it's losing them money.
  • PaganWolf
    Add to it the name of this model and you can tell they're going south.
  • Conrad L.
    Yeah, Death Watch is a bit too far.. Feeling Poorly Watch maybe.
  • The M.
    Well Id be glad to see Nokia go under - they should all be jailed for that logo on all there phones with the adults hand reaching out and holding the child's hand its obviously a subliminal way of trying to turn us all into raging paedophiles, burn them all I say - hangings to good for them etc etc.
  • Shaun
    "The consumers, it seems, are just not interested." Huh? They sold more smartphones than they did last quarter and their marketshare remains the same at 41%. That would seem to indicate consumers are increasingly interested in smartphones and equally as interested in Nokias as they were last quarter. Meanwhile, they've got shedloads cheaper than last year which is a win for consumers who don't want to spend thousands on a contract iPhone/Android Java battery hog. Sure, Nokia didn't make huge profits. Doesn't that just show they're not ripping their customers off? I thought bitterwallet was looking after consumers, not making them spend needlessly? @PagenWolf - that E5 you pointed to isn't a Nokia. It's a Chinese rip off. They also do an iPhone rip off thoughit is cheaper than the original Apple rip off.
  • Nathan
    The first poster 'Kev' is quite clearly a bit of a spacktard if he had trouble setting up a Nokia 5800. Infact he probably has a drawing on his bathroom wall to remind him which way round to sit on the toilet each morning

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