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Nokia Reports Q2 Loss while Apple Sales Increase
Nokia Reports Q2 Loss while Apple Sales Increase
By: Anish Sadanandan

Nokia has seen its market share declining as the years passed by. This may be due to the fact that local competitors, especially in markets like India, have eaten into a large chunk of Nokia’s market by releasing new cheaper, and attractive phones with all the social networking capabilities that a user these days would need. With the likes of local companies Micromax, Maxx, Alva, and Spice mobiles entering markets like India, it is hard for Nokia to hold on, unless it really does something significant in the smartphone department. Currently, Nokia has a very dismal performance as far as smartphones are concerned. This, coupled with local competitors, may be the primary reason for Nokia to report a Q2 2011 operating loss of $693 million, and a 20% Y-O-Y decline in net sales.

Nokia and Microsoft

Nokia’s answer to its smartphone woes seemed to be teaming up with Microsoft for a new OS. Symbian was not doing any favors for Nokia in the smartphone market and change was imminent, and this is when Nokia decided to go with Microsoft in order to get their hands on the Windows Phone 7 operating system.

 

Considering the losses that Nokia have incurred over recent times, it has sped up the plans to launch Nokia phones with Windows Phone 7 OS so as to launch this by end of 2011 itself, as compared to the initial plans of launching in 2012. Nokia’s decline in its market share has been so significant that there were rumors recently that Microsoft were planning to take over the Finnish giants. However, Nokia Chief Executive Stephen Elop dismissed the rumors and reiterated that the sole purpose for tying up with Microsoft was to use Windows Phone 7 and get rid of Symbian OS. He said,

My principal focus and the focus of the team is to take care of the short term but make sure that the execution is flawless. Symbian was at a deficit in some markets compared to the iPhone and Android. Our assessment of the speed with which we could catch up was that it would not be enough

Nokia seem to be doing their bit to claw their way back into the market. However, their attempts to capture the market do not solely depend on their performance, but also the performance of their competitors. Let us see how competition is faring.

Apple: 20 million iPhones and 9 million iPads sold

 

Apple has recorded a 142% Y-O-Y increase in iPhone sales, and a 183% Y-O-Y increase in iPad sales. This hardly comes as a surprise to anyone as the whole world is still pretty much fascinated with the Apple products. These numbers, coupled with Mac sales put Apple’s net profit for the quarter to a record $7.31 billion. Looking at Apple’s sales, and considering that Apple products are going to be famous for a long time to come, Nokia will really have to do something out of the box to reclaim their market share.

Samsung to launch Galaxy 3D?


Samsung were recently in news for being sued by Apple for intellectual property infringement. The temporary set-back does not seem to have deterred with rumors that Samsung is set to follow the footsteps of Sharp and LG, and may just be releasing the Galaxy 3D. Samsung is not the only company to follow suit as HTC are awaiting the launch of their Evo 3D.

Looks like competition is really stepping up the game, and it is time for Nokia to step up to the plate. If recent performances are to be taken into consideration, Nokia is going to lose out yet again. But along with Micrsoft, Nokia may just prove to be a worthy competitor once again to the leading companies like Apple. What do you think?