Nokia loss deepens to 1.4bn euros

IP is over the quota
IP is over the quota
19 July 2012 Last updated at 11:03 GMT A software bug dented early sales of Nokia's Lumia 900 Nokia made losses of 1.41bn euros (£1.1bn) in the last three months as the mobile phone maker lost more market share to Samsung and Apple.

Sales fell 19% to 7.54bn euros, with smartphone sales falling 34% to 1.54bn euros.

Nokia was the world's leading mobile phone maker for more than a decade, but has faced fierce competition.

Nokia chief executive Stephen Elop said the company was facing "greater than expected competitive challenges".

The company said it had sold four million Lumia smartphones, which have Microsoft's Windows software, in line with the market's forecast.

However, its overall smartphone figure of 10.2 million shipped devices was 39% lower than the corresponding number the previous year.

Last week, Nokia halved the price in the US of its flagship Lumia 900 phone, which the company hopes will challenge Samsung and Apple products.

Shares in Nokia rose as the figures were not as bad a feared, and investors also took comfort from news that the firm had improved its cash position during the three months.

Nick Dillon, analyst at Ovum, said: "After a seemingly endless run of bad news, these results offer a glimmer of hope for Nokia.

"The company has managed to double the sales of Lumia devices since the last quarter - if it can maintain this momentum then it could be on the road to recovery."

All three major major credit ratings agencies have cut Nokia bonds to "junk" as the firm has issued two profit warnings and announced plans to cut one in five jobs.

Mr Elop said in a statement: "We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly.

"Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges."

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VIDEO: What next for Nokia?

IP is over the quota
IP is over the quota

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Why Skype would help, not hurt, Windows Phone and Nokia with vectors

There is a lot of talk that Microsoft's purchase of Skype has been hurt acceptance of Windows Phone with Skype as vectors because they see a threat to their business. Recently, Nokia's CEO Stephen Elop was quoted as saying. But that is only part of the story--Elop went on to say that the Microsoft Windows Phone Skype will help, not hurt.

The thing to do on Skype wrong Windows Phone came last week due to a blog post by Tomi Ahonen about Nokia shareholder meeting recently. Ahonen says that a shareholder said Elop AS CEO of Nokia, "Nokia seems to have a problem with the channel of distribution due to Skype," and then asked what Nokia planned to do about it. Ahonen said Elop admitted that carriers were reluctant to carry Windows Phone devices Nokia due to Microsoft property of Skype. Ahonen CITES then Elop as saying:

"If the operator doesn't want us, it doesn't feel like it. We will appeal to them with other topics. We have more to offer them. It is a good place to start the discussion by Skype. "

Why bother vectors on Skype? Is why Skype could potentially eat into their bottom lines. When you make Skype calls, you're using your data plan, not just carrier voice plan. Carriers pay more per minute voice and data, and therefore more people use Skype, less revenue get.

That's the theory, anyway. But there are a lot of holes in the theory. Skype is not only available for Windows Phone; is also available for iOS and Android. This clearly means that the carriers don't discriminate against Windows Phone because it has Skype on it--all those great run Skype.

In fact, Elop went on to point out, Microsoft property of Skype could help Windows Phone with carriers, not bad. Il blog di MyNokia have a more complete transcript of what he said Elop on Skype. Read the transcript, and you'll see Microsoft property that View of Skype as a Elop competitive advantage, because Microsoft could work with carriers to ensure that Skype increases revenue, rather than cut into revenue:

(Skype) "on all Android devices, is on iPhone devices, it is on iPad, is all about those devices. So really what we're doing with operators is turning it into an advantage. Instead of just complaining about them on Skype or Skype on Android, iPhone and Nokia with Microsoft, we can have a conversation that says "OK, is this thing of Skype, there is a different kind of partnership that we can make that recognizes that voice over IP as Skype is coming no matter what, but maybe we can do something creative that generates incremental revenue for you."

In this case, the vectors would favor Windows Phone over other smartphones because it would be the only operating system that generates revenues by Skype, Skype rather than having to remove the carrier's revenue.

Although this could help to Windows Phone, I don't think that will make a difference. Windows Phone is still struggling to gain market share and is approximately 2% or less in the United States, Microsoft will need much more than Skype to make it a success.

 

Why Skype would help, not hurt, Windows Phone and Nokia with vectors

There is a lot of talk that Microsoft's purchase of Skype has been hurt acceptance of Windows Phone with Skype as vectors because they see a threat to their business. Recently, Nokia's CEO Stephen Elop was quoted as saying. But that is only part of the story--Elop went on to say that the Microsoft Windows Phone Skype will help, not hurt.
The thing to do on Skype wrong Windows Phone came last week due to a blog post by Tomi Ahonen about Nokia shareholder meeting recently. Ahonen says that a shareholder said Elop AS CEO of Nokia, "Nokia seems to have a problem with the channel of distribution due to Skype," and then asked what Nokia planned to do about it. Ahonen said Elop admitted that carriers were reluctant to carry Windows Phone devices Nokia due to Microsoft property of Skype. Ahonen CITES then Elop as saying:

"If the operator doesn't want us, it doesn't feel like it. We will appeal to them with other topics. We have more to offer them. It is a good place to start the discussion by Skype. "

Why bother vectors on Skype? Is why Skype could potentially eat into their bottom lines. When you make Skype calls, you're using your data plan, not just carrier voice plan. Carriers pay more per minute voice and data, and therefore more people use Skype, less revenue get.
That's the theory, anyway. But there are a lot of holes in the theory. Skype is not only available for Windows Phone; is also available for iOS and Android. This clearly means that the carriers don't discriminate against Windows Phone because it has Skype on it--all those great run Skype.

In fact, Elop went on to point out, Microsoft property of Skype could help Windows Phone with carriers, not bad. Il blog di MyNokia have a more complete transcript of what he said Elop on Skype. Read the transcript, and you'll see Microsoft property that View of Skype as a Elop competitive advantage, because Microsoft could work with carriers to ensure that Skype increases revenue, rather than cut into revenue:

(Skype) "on all Android devices, is on iPhone devices, it is on iPad, is all about those devices. So really what we're doing with operators is turning it into an advantage. Instead of just complaining about them on Skype or Skype on Android, iPhone and Nokia with Microsoft, we can have a conversation that says "OK, is this thing of Skype, there is a different kind of partnership that we can make that recognizes that voice over IP as Skype is coming no matter what, but maybe we can do something creative that generates incremental revenue for you."

In this case, the vectors would favor Windows Phone over other smartphones because it would be the only operating system that generates revenues by Skype, Skype rather than having to remove the carrier's revenue.
Although this could help to Windows Phone, I don't think that will make a difference. Windows Phone is still struggling to gain market share and is approximately 2% or less in the United States, Microsoft will need much more than Skype to make it a success.