Friday, January 25, 2013

Nokia bounces back to profit on smartphone demand

10:32 AM | Posted by ProJ | | Edit Post

Finnish mobile phone manufacturer made a profit of € 439m compared with a loss of about € 1 billion a year ago, sales of smartphones relive

Nokia has returned to profitability, ending a 18-month period during which piled up losses of more than € 4 billion (? 3.36bn), but it has canceled its dividend for the first time more than a century in order to conserve cash.

The Finnish mobile phone manufacturer has registered an operating profit of € 439 million, against a loss of about € 1 billion per year, while consumer demand for its smartphones and boosted decision to reduce its workforce by 20,000 reduced costs. The company has returned to growth, with net sales up 11% compared to the previous quarter, to € 8 billion.

In a sign that the Windows operating system that is widely used in the market Nokia's flagship Lumia phones began to gain strength, the key devices and services division also returned to profit.

The number of smartphones sold totaled $ 6.6 million at Christmas, against 6.3 million in the previous quarter to 4.4 million in total Lumia range. Although Nokia sold 20 million smartphones last year, the average selling price rose 33% to € 186, the quality of their mobile phones has improved.

CEO Stephen Elop has left the company in the local phone software, Symbian in favor of Microsoft Windows Phone in 2011 to produce devices capable of matching Apple and better products Samsung.
  • was a move that many considered risky, given the significant presence of Microsoft in the mobile and the immense popularity of Google's Android software, Nokia could have chosen to use.
  • "We are encouraged by our execution of our business strategy started to result in financial results," said Stephen Elop. "We remain focused on our transition moving through, including improving our product competitiveness, accelerate the way we operate and manage our costs effectively."
to keep more money, the dividend was canceled in 2012 - Nokia has paid € 0.2 per share for 2011. The company has paid a dividend since electronic records began in 1989, even if a researcher requests Finland shareholders received an award every year since 1971, when Nokia was in the paper business.

"The fourth quarter of 2012 was the final result for Nokia," said Francisco Jeronimo of IDC market. "Significant results should be delivered this year, from the first quarter of 2013 of Nokia only two options: .. Be significantly increase sales or radically change its strategy "


Nokia
performance was driven by its business network equipment, Nokia Siemens Networks, which after lower costs and strong sales growth reached its highest operating margin since its inception in 2007.
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