Nokia Expects Lower Profit Margin In Q2 Of 2012: [REPORT]

Must Read

Google Just Got Super Smart: Launches The Knowledge Graph

If there is one product on the Internet that has had absolutely no competition whatsoever, it is Google Search....

What Everyone Ought To Know About Social Bookmarking

As a marketer, you might be wearing different hats in your startup. Strategizing content, Executing SEO activities, drawing a social media...

E-Commerce Industry In India Worth $13.5 Billion In 2014: Will Cross $16 Billion In 2015

According to the latest report by IAMAI and IMRB International, the eCommerce industry in India reached a value of INR 81,525...

Nokia has recently updated its Q1 financial performance guidelines for 2012. According to the Finnish mobile handsets manufacturer, over 2 million Windows Phone based Lumia Smartphones were sold in the Q1 of this year. The company has revised all ‘pros and cons’ of Q1 and has pointed out numbers of factors which were responsible for affecting the company’s ‘Device & Services Business’ to a greater extent. The company could not stand down to its previously expected figures. The is reason is quite obvious that the company could not manage to do a good business in some specific markets like India, Middle East and Africa, and China–where gross margin declined below the expected value in Q1 due to plunge in demand. The operating margin of the company has been mounted down by 3% in Q1 of fiscal 2012, down from the previously announced “break even” value.

However, the company has declared that its profit margin might be either equivalent or less than the Q1’s profit margin of the fiscal 2012. Multiple roadblocks such as macroeconomic environment, high expectation of consumers, new demands of the products and competitive mobile phone business enforced the company to poorly perform in the Q1 of this year.

According to the company’s financial updates, it sold 12 million Smartphones (equivalent to USD 2.23 billion in sales) in the Q1 first of this year. The company shipped 71 million non-Smartphone in Q1, which is equivalent to the USD 3 billion in sales.

Advertisements

The company is currently more relying on its Lumia lineups business to bring a vast numbers of the devices to the market across the world. In the last week, the company launched its Windows Phone 7.5 based Lumia 900 model on AT&T carrier in the US. The company is currently following a low-price strategy to attract a large numbers of folks toward the device, that’s why,  the company has kept just $99.99 for Lumia 900. However, I have previously illustrated why users should buy Nokia 900 Smartphone? Anyway, the company seems very aggressive towards the shipment of its Lumia models this time, which is quite rationale.

Via: Mobileburn 

3 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

IPL Ads And Dogecoin Frenzy Put Crypto Exchanges in India In Hot Water?

IPL advertisements and the dogecoin frenzy has overwhelmed Indian banks to the fullest extent! According to multiple industry sources, Indian...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This