Nokia lowers financial expectations for 2010
So here I am all excited and pleased with the T-Mobile Nokia E73 Mode and then I see news from Nokia that they are lowering expectations for second quarter 2010 and full year outlook predictions. As a publicly traded company, it seems that Nokia needs to keep shareholders updated with the situation so there are no real surprises at the end of financial periods. Nokia stated that several factors are negatively impacting their Devices & Services business more than expected. These factors include:
- the competitive environment, especially at the high end
- shift towards lower gross margin products
- depreciation of the Euro affecting cost of goods sold, expenses, and global pricing tactics
Nokia will still have net sales in the range of EUR 7 billion, but they expect their mobile device market share to remain flat in 2010. Actually, remaining flat is pretty impressive given that Palm’s webOS, Apple iOS, and Google’s Android OS are much flashier with many more high end devices available. Given that Nokia is reducing the number of devices it launches, is in a transitional period as it moves to the Symbian^3 (and higher) operating system, and is killing off Maemo and transitioning to Meego it really is no surprise that they would be flat in 2010. The last flagship device they launched, the Nokia N97, was about a year late and had software and hardware issues that kept it from being as good as it should have been. The Nokia N8 will be the next major device, but that will launch a bit later in 2010 and probably have little effect on this year’s financials.