Deathwatch: Nokia's profits fall
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.
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.