The world's leading mobile phones, Nokia, announced on Thursday, April 21, earnings declined slightly. In the first three months of the year, Nokia posted a net profit of 344 million euros, or 1.4% less than last year (349 million). But this result is well above the consensus reached by Dow Jones Newswires, which projected 279 million.
In the same period, sales rose 9.2% to 10.39 billion, according to the quarterly report of the Finnish group. These figures are the first published by Nokia since the new CEO, Canadian Stephen Elop said in February that the group was facing stiff competition from the iPhone, Blackberry and Google in the lucrative niche of the smartphone.
He then announced that Nokia would abandon its Symbian operating system to a system designed by Microsoft. "During the first quarter, we moved the definition to the execution of our strategy," says CEO quoted in the financial report. The market share of Nokia in the mobile phone sector has declined in Q1 from 33% to 29% over the same period in 2010.
The radical change of strategy by Nokia aims to halt this decline has worsened since 2008 when the group held 40% market share. DISMISSALS PLANNED Nokia expects a drop in its mobile phone sales of 7.1 billion euros in Q1 to 6.1 to 6.6 billion in the second quarter and the third quarter.
The fourth quarter is "a more favorable period (...) Nokia's competitiveness will decline more in times to come, until Nokia will adopt the Windows system," according to analyst Michael FIM Bank Schroeder, told Agence France-Presse. In February, Stephen Elop had predicted layoffs "important" as a result of this new strategy.
News Nokia no details on the number of redundancies envisaged. It simply notes that the group hopes to reduce its operating costs by about one billion euros in 2013 "including a reduction in the number of employees, and voluntary redundancies." News reports recently suggested a reduction in force from 2000 to 6000 people and hundreds or thousands more among subcontractors.
Nokia employed at 31 March, 130,950 people in Tech News Buzz. 
In the same period, sales rose 9.2% to 10.39 billion, according to the quarterly report of the Finnish group. These figures are the first published by Nokia since the new CEO, Canadian Stephen Elop said in February that the group was facing stiff competition from the iPhone, Blackberry and Google in the lucrative niche of the smartphone.
He then announced that Nokia would abandon its Symbian operating system to a system designed by Microsoft. "During the first quarter, we moved the definition to the execution of our strategy," says CEO quoted in the financial report. The market share of Nokia in the mobile phone sector has declined in Q1 from 33% to 29% over the same period in 2010.
The radical change of strategy by Nokia aims to halt this decline has worsened since 2008 when the group held 40% market share. DISMISSALS PLANNED Nokia expects a drop in its mobile phone sales of 7.1 billion euros in Q1 to 6.1 to 6.6 billion in the second quarter and the third quarter.
The fourth quarter is "a more favorable period (...) Nokia's competitiveness will decline more in times to come, until Nokia will adopt the Windows system," according to analyst Michael FIM Bank Schroeder, told Agence France-Presse. In February, Stephen Elop had predicted layoffs "important" as a result of this new strategy.
News Nokia no details on the number of redundancies envisaged. It simply notes that the group hopes to reduce its operating costs by about one billion euros in 2013 "including a reduction in the number of employees, and voluntary redundancies." News reports recently suggested a reduction in force from 2000 to 6000 people and hundreds or thousands more among subcontractors.
Nokia employed at 31 March, 130,950 people in Tech News Buzz.
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