Business World

Friday 27 April 2018

Nokia profits triple but still second lowest in a decade

Nokia's head office in Espoo, Finland. Photo: Bloomberg News
Nokia's head office in Espoo, Finland. Photo: Bloomberg News

Nokia, the world's biggest maker of mobile phones, may report its second-lowest profit in more than a decade for the first quarter as competitors reduce prices in both smartphones and standard handsets.

Net income may have more than tripled to €404m from €122m a year earlier when orders dried up during the recession, according to the average estimate of 22 analysts surveyed by Bloomberg.

This, however, compares to profit in the first quarter of 2008 of €1.22bn.

"This level of profitability is the new normal," said Michael Schroeder, head of research at Helsinki-based FIM Bank.

"It's far away from the levels before 2009. It's quite clear the competition is much tougher these days than it was a couple of years ago."

Sales in the first quarter probably rose 5.4pc to €9.78bn, the average analyst estimate showed. Nokia releases figures at 1pm in Helsinki today.

Nokia lost overall market share last year, according to Gartner Inc figures.

Apple yesterday reported a 90pc increase in net income for its second quarter ended March 27 as sales rose 49pc to $13.5bn (€10bn).

Nokia has lost about half its market value since the iPhone debuted in June 2007, making it cheap relative to other mobile stocks.

Irish Independent

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