Nokia blames competition for poor sales
Nokia has accounted for disappointing sales by blaming others for competing, which seems very reasonable.
The manufacturer, which was such a pacesetter during the initial mobile industry boom, has experienced a hefty 11% drop in share price. This comes as a result of strong competition, and you have to hope Nokia didn’t hire someone to work that out.
Decent results from the Lumia handsets have failed to outweigh the weak performance of Nokia’s other phones. 5.6 million Lumia models were sold in the first quarter, which is up by over a million from the previous three months.
However, net sales fell to the equivalent of £5bn from the previous year. Phone volumes fell by 30% and the once lucrative Chinese market saw a 60% drop in business.
Nokia’s net loss did drop to 272m euros, down from the eye-watering figure of 928m last year, but this was through cost-cutting measures implemented by the company.
Chief executive Stephen Elop confirmed the company’s recent revelation, saying that the Finnish manufacturer faces a “difficult competitive environment”, clearly referring to Samsung and Apple, and their ability to swat away rivals nonchalantly whilst eating cake.
He added: “We are taking tactical actions and bringing new innovation to market to address our challenges.”
Nokia, suffice to say, is in a bit of a pickle.
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