http://www.guardian.co.uk/technology/2013/jan/24/nokia-returns-to-profit-smartphones
The article talks about how Nokia has ended an 18-month period of losses amounting to over €4bn. The turnaround is mostly attributed to the the increased demand for smartphones, which rose over the Christmas period, and the flagship product is the company's new 'Lumia' phone. The company also cut costs by reducing the workforce as sales rose in comparison to the previous quarter, and scrapped the 2012 dividend. An interesting factor is that consumers have responded well to a perceived rise in quality of the products sold and this has seen an increase in the average selling price. Nokia has attempted to increase its competitiveness by switching to Microsoft's operating software to keep it on par with Apple's iPhones and Google's Android phones.
The article talks about how Nokia has ended an 18-month period of losses amounting to over €4bn. The turnaround is mostly attributed to the the increased demand for smartphones, which rose over the Christmas period, and the flagship product is the company's new 'Lumia' phone. The company also cut costs by reducing the workforce as sales rose in comparison to the previous quarter, and scrapped the 2012 dividend. An interesting factor is that consumers have responded well to a perceived rise in quality of the products sold and this has seen an increase in the average selling price. Nokia has attempted to increase its competitiveness by switching to Microsoft's operating software to keep it on par with Apple's iPhones and Google's Android phones.
3 comments:
Aara,
It will be interesting to see how Nokia will do in the future with these adjustments. Based on my preferences and the likes of many others, I cannot imagine that using a Microsoft will make them anymore competitive but I am aware that Nokia is better received in Europe and Asia than it is here in the United States so maybe it'll catch on better in those markets.
It sounds like Nokia is making the right moves to be able to compete at the same level as Apple and Google. Their new developments and reallocation of funding, as far as cutting work force goes, is a smart play in order to make an imprint on this market. I think that switching to Microsoft's operating software would be a great benefit to them because they will have a platform that people are used to and trust.
The move to Microsoft's operating software and the development of the 'Lumia' phone may have been Nokia's saving grace. In addition to cutting costs by reducing the workforce and scrapping the 2012 dividend, Nokia sold their headquarters in Helsinki, travel and teleconference economically, and shut factories down across Europe. It seems as though that Nokia has tried to maintain it's company's self, but has failed to keep up with the revolution of the smartphone market. Despite having a phone that can compete with Samsung or Apple, Nokia believes to expect to see global market share to rise to 6% over the next year with these changes.
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