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Nokia Q3 2009 results, converged device shipments slip

72 replies · 24,229 views · Started 15 October 2009

Nokia has released their Q3 2009 results. Nokia rerpoted an operating loss of EUR 426 million, but this was primairly due to a write down in the value of Nokia Siemens Network. Nokia's device and service division's profits were EUR 785 million, up 3% from the previous quarter. Converged devices sales (smartphone) were up at 16.4 million, compared with 15.5 million units in Q3 2008 and 16.9 million units in Q2 2009. As such converged device volumes were, perhaps, lower than expected.

Read on in the full article.

Not a great surprise...
Quarter a quarter, Nokia go down a little more, and they keep the same sales and marketing line:frown:

Sadly it will be worse even there is E72,E55 and the N900. Only the combination of SYmbian^2,3,4 with markiting strategy and intelligent advertising for the software capabilities will change the bad situation.

And Nseries is begging. N98 with hell features is badly needed now and let it cost 1500$ at least people will dream about it like when they dreamed about N95 in 2007. I cant dream to touch the N97 (or N900) now!!!

They did little better than expected. N-Series is falling down like their market share/imago/stocks.

Nokia shares are diving deeply atm. No wonder though, after N97 and OVI flops. :P

Actually losing a bit of marketshare will help Nokia to regain focus. Sometimes too large a marketshare is hard to maintain. One strategist was discussing this very thing in one of the Apple forums. He was saying that by not trying to garner certain markets, Apple is free to spread across several and maitain profiability. This seems to be working as they are well in the black and making a very tidy sum. If Nokia can sort of slim down some of its phone models and concentrate on those which the population seem to be clamoring for, they could do very nicely. The phone market has shown that there is enough room for many different brands and types. Nokia just has to position itself in these markets as a player, not necessarily as the most dominant.

it all started with the iPhone...
All you Nokia fanboys who laughed at Steve Jobs when he unveiled the iPhone in that 2007 keynote, Who is laughing now?
It's over. Nokia can't compete and you know it.

You tard, this has nothing to do with the iPhone and well you know it. So Nokia sell 1m smartphones more than in the same quarter last year, but they can't compete; hmm, interesting logic. No doubt Apple would love to be selling upwards of 60 million phones a year, but that's probably never going to happen.

Do not worry about BUSTAFONE. He is a troll and he knows it. 😉

Heheh! Nice try at flaming...Jeez come on, sometimes it's like from some people's point of view that since Apple launched the iPhone all other phone manufacturers should shut up shop and go do something else...

I seem to recall that the 1st & 2nd gen iPhones dont capture video, the new iPod Nano captures video but no photos, the 3rd gen iPhone captures both video and photos and the iPod Touch does neither, Nokia and other manufacturer's devices have been able to do both for years already..

Check out some of the reviews of the N900 and then read the comments, iPhone doesn't look so hot anymore, OS X for mobile can't even play Adobe Flash content, what a joke...

Back on topic:
Nokia is in a transition phase. They did a lot to reinvent themselves (again) during the past two years (services focus, Maemo focus for high end, Symbian made open source, QT UI). This is quite a long term strategy and will need at least another year to come together (Maemo 6, QT everywhere, Symbian ^2,3,4, Services consolidation). Given that they have "road works" on all major paths they are doing quite well.

This reflects continued poor sales for the Nseries

Let me understand this: does Q3 mean July, August, and September, basically the time when the N97 and the N86 (Nokia's N-series and imaging flagships, respectively) went on sale? Bwahahahahahaha.
I mean, if the release of not one, but two flagship devices doesn't result in a (at least temporary) surge in sales, stick a fork in Nokia N-series, it's done.

The mobilecrunch article is plain wrong even in it's first sentence: "Nokia suffered an $834 million loss due to falling handset sales".

The loss is mainly because of a write down in the value of Nokia Siemens Network.

I wasnt aware the N900 cant do MMS, agreed thats a joke..

Wait a minute! Wasn't AT&T in US promising MMS for iPhone for SUMMER 2009?? Then someone filed a class action against them because summer turned into Fall 😉

Oh well I guess nobody's perfect.. Better got and charge your iPhone, the battery is running out again, shame you can just remove the cover and insert a spare one...

Yeah anyone who dare s to tell the truth about your sinking ship is a troll.

After watching you euro types diss us Americans for being behind in cellphones and mobile tech in general, I am elated to see Nokia brought down by whom? APPLE and RIM, Thats right, AMERICAN manufacturers.

As much as most of us admire Nokia, we have to admit that they have been asleep at the switch for far too long. How on earth did they ever conspire to come out with buggy laden devices like the 5800 and N97. Who is in charge of QA, is anyone home at Nokia ?. Where is the attention to detail ? Why release buggy firmware expecting the user to accept the 'we will fix that in the next firmware update' joke. Ok how about synchronisation - I cant even Sync my podcasts. Nokia messaging is a buggy joke and Nokia Music is a waste of time.

Ok so Maemo will change all this (I hope so) . Even then, why ship it without MMS expecting users to toe the next firmware line. Bottom line, this is a confused company, very confused and the debacle that is Ovi store illustrates this perfectly.

You may not like Apple (I'm with you on that, their walled garden approach is horrible) but even the most dyed in the wool Nokian will have to admit that they've got the basics right with the iPhone and its obvious software quality is a priority there. They fully deserve their success and I wish them the very very best.

As for Nokia, thanks for giving me the 5800XM , million firmware updates later, I love it but dont forget, Innovate or die!!.

BUSTAFONE wrote:Yeah anyone who dare s to tell the truth about your sinking ship is a troll.

After watching you euro types diss us Americans for being behind in cellphones and mobile tech in general, I am elated to see Nokia brought down by whom? APPLE and RIM, Thats right, AMERICAN manufacturers.

hmm, but RIM is Canadian bro .

Mod note: Removed off-topic, discussion on US health care.

It's pretty tricky to put a positive spin on these results. And the year-on-year drop tells quite a tale if you ask me, especially in North America.

What percentage of sales is being driven by Ovi, N-Gage, Maps, Music Store, etc.?

Some of these services have been around for quite some time now. How much value are they adding?

The fact of the matter is Nokia is facing stiff competition from both Asian and American manufacturers. Whats more challenging is there is not short term strategy in place to beat competition. Let me explain.

Flag Ships:

Have a look at the flagships from Apple, HTC and Palm. You just can't call N97 a better phone because it does "multitasking"..Hey, thats not a MUST HAVE feature. Its just something that Apple doesn't have so its become important for geeky comparison.

To be in the premium its not enough that you put in more flash memory, The early adopters need innovative software (aka eye candy).

Hardware:
And talking about hardware...Nokia probably can't source it...Thats why their phone with the snapdragon chip will come only in Feb 2010.

Emerging markets:
Here Nokia will only gain from Volume growth, But that means lower margins. Sadly, it wont be long for the Koreans and Taiwanese to penentriate the mindshare that Nokia has built over years.

What are left with Europe:
Execpt for the Nokia "Fan Boys" , Who are just old men, The actual younger generation has moved. They no longer find Nokia the innovative handset manufacturer it was (Last seen with N95)

There are some serious questions. Why Maemo, Does that mean symbian is no longer a "Smartphone OS", Why Maemo when Android is around.

Come'on U want to get capacitive multi touch in 2010 and compete with iPhone OS and Android. U should be kidding!!!!

I have to agree with at least part of the post that puts this down to the iPhone. Im not an Apple Fanboy, I didnt buy the original iPhone (it didnt impress me) but I was a Nokia user and I now own the iPhone 3Gs. While some may argue that the iPhone raised expectations for consumers others argue that this can not possible because Nokias phones had better camera/video recording/keyboard and more features before the iPhone was ever released. My view is that the iPhone did not raise expectations but it did change them. At the time when Apple was selling a cool and stylish smart(ish) phone that did what it did very well and was a direct replacement for many ipods, Nokia was selling the N96 as the flagship device. This turned in to a poor replacement for the brilliant N95. When Apple opened up the iPhone to direct downloading of apps, the best Nokia was offering was a download catalog folder that few people even new existed on their phones. When apple caught the attention of serious game developers, Nokia was still trying to make up its mind what to do with N-gage. I was a fan of the first Ngage and the concept behind the second offering but i still dont understand what they are doing with Ngage now. And while all this was going on google release Android, and Palm release the Pre. Nokia have made some great phones but they got lazy and lost their way. Hopefully this will be a wake up call and they will get back in the game.

BUSTAFONE wrote:Of course I know RIM is Canadian, genius.
And Canada is in AMERICA, and gets the latest harware at the same time and sometimes later than us.

Healthcare? We have the best in the world, thank you. We don't want your stinking Euro socialism imported to America.

No Canada is in North AMERICA you muppet.

Mod note: Removed off-topic, discussion on US health care.

Unregistered wrote:The fact of the matter is Nokia is facing stiff competition from both Asian and American manufacturers. Whats more challenging is there is not short term strategy in place to beat competition. Let me explain.

Flag Ships:

Have a look at the flagships from Apple, HTC and Palm. You just can't call N97 a better phone because it does "multitasking"..Hey, thats not a MUST HAVE feature. Its just something that Apple doesn't have so its become important for geeky comparison.

To be in the premium its not enough that you put in more flash memory, The early adopters need innovative software (aka eye candy).

Hardware:
And talking about hardware...Nokia probably can't source it...Thats why their phone with the snapdragon chip will come only in Feb 2010.

Emerging markets:
Here Nokia will only gain from Volume growth, But that means lower margins. Sadly, it wont be long for the Koreans and Taiwanese to penentriate the mindshare that Nokia has built over years.

What are left with Europe:
Execpt for the Nokia "Fan Boys" , Who are just old men, The actual younger generation has moved. They no longer find Nokia the innovative handset manufacturer it was (Last seen with N95)

There are some serious questions. Why Maemo, Does that mean symbian is no longer a "Smartphone OS", Why Maemo when Android is around.

Come'on U want to get capacitive multi touch in 2010 and compete with iPhone OS and Android. U should be kidding!!!!

Okay, I've got a few things to tell you first, after which I'll comment on the article.
Firstly, "early adopters need innovative software (aka eye candy).", after reading that I can honestly say that either you're an idiot or have no idea what innovative means, eye candy means something that looks good, innovation has nothing to do with looks.
Secondly, "Execpt for the Nokia "Fan Boys" , Who are just old men, The actual younger generation has moved.", oh boy, where do I start? I'm not a fan boy, sorry for ruining your fantasy, oh, and I'm also 18, shocking I know. "The actual younger generation has moved", how you've decide that I have no idea, but how 'bout coming over to Romania and walking through two Universities and down the central Boulevard in Bucharest, I will make a wager that the Nokia's outnumber the Apple's by at least 10 to 1, though it'll probably be more.

On to the article, since I'm neither a journalist nor an economist, I won't have the nerve to say Nokia's in trouble, because those numbers look good to me especially because of the fact that they will soon launch a host of new devices, and because they made a profit, right? So, what's the problem?
One last thing, why do people get so angry when someone says something bad about a company? Even if the statement is correct. Come on man, it's just a damn company, not your mother. It's not like they pay you to attack the naysayers with the crusader-like fervor I've seen exhibited.
I'll try to keep it shorter next time.

2009 as been very bad year for Nokia an they do not seem to want to compete in the Top Class mobiles an seem more bothered about the cheaper price mobile,we thought they would release much better mobiles to show they are still the Best ,but we have not at all ,they did not want to compete with the Top Class Camera mobiles as Samsung an Ericsson were showing Nokia up,an then we get a Cheap idea from Nokia using the N85 body an put a 8 mega-pixel camera on it,an that was well below par from Nokia,an the N86 is not mobile that will attract alot of people as its not really out standing,Now we get the 12 mega=pixel camera mobiles but were are Nokia again letting its fans down an no sign of Nokia want to compete again,they better realise Nokia people will start buy other mobile instead of theres if they do not change there ideas or sales will drop down further

Who are you kidding? Nokia outnumbers Apple 10 to 1 in Romania because these students can afford an iphone.
You think if they had a choice to get either one at the same cost they would choose Nokia? Please!

.

Mod note: Removed off-topic, discussion on US health care.

Nokia made a strange decision post N95. They did not realise they were on with a real winner by being early adopters of PowerVR graphics they could have build on the N95's success by rolling out a constantly improving hardware platform. Instead they went backwards with N96 and N97. The fact they may have slowly come to realise this and have jumped back on the OMAP/PowerVR badwagon with the N900 hopefully hasn't come too late for them. They need to be able to exceed Apple pound for pound in the CPU/GPU space from a mid-high end perspective, as if they don't their market share will continue to be eroded by the new challengers and Samsung, and potentially a revitalised Motorola (even!) next year. SE have adopted OMAP3 on one of their flagship devices. Nokia need to raise the bar and get onto the OMAP36xx platform before the others otherwise they will continue to suffer.

Deleting my posts eh?
So typical, -----!

Mod note: Edited for language.

@The Guy from Romania.

Its easy to interpret that you know neither geography no finance nor anything about Journalism.

Come back to this forum, and incase Nokia starts making innovative products that capture peoples imagination by then, you can have a counter-point.

Till they keep pacifying urslef by says ""I know they have something up their sleeve"