The fact that Nokia is sick is even admitted by the company itself, but nobody expected that the loss could widen. If you can't believe the tragedy, that Nokia is facing, just visit a local store and ask the shopkeeper how many Finnish gadgets he/she managed to sell starting with this January.
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Does Nokia Keep Falling?
Nokia's net loss nearly quadrupled in the second quarter on smartphones' area, where the Finnish brand is struggling to regain its lost popularity. Although, it has teamed with Microsoft, honestly Windows Phone platform doesn't match at least 50% the performance of Apple or Samsung models, each one running a different operating system.
A solution for an immediate survival could be the focus on low-end phones, very accessible (rated between $50-$100), running a medium Windows software and able to replace the older smartphones or simple phone models, like Nokia 5000 series.
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Does Nokia Keep Falling?
For some analysts, the data offered by Nokia about its performance, aren't that bad. For instance, Gartner thinks that Nokia offered a pleasant surprise, since sales are only down 24%, revenue is only down by 29% and the company has more cash left than many thought, for its shares rose by 15%. To be more concrete, Nokia posted a net loss of 1.41 billion euro ($1.74 billion), about four times their loss of 368 million euro during the same period a year earlier and more than double the loss anticipated by analysts.
Let's admit that these data are quite optimistic, what about Lumia series? Everybody expected that new Lumia could resurrect the brand, but it succeeded to see just 600,000 units in America and 4 million worldwide, while Apple and Samsung are fighting over millions of particular models. Probably, when Lumia was firstly announced, retailers desperately wanted Nokia enhanced with Windows Phone to provide a viable counterpoint to iOS and Android, but things didn't work well. Windows Phone might look great, thanks to its improved graphics, but it lacks diversity, when it comes for apps and a smartphone consumer is directly interested by apps, making his/her life easier. In fact, shipments of new smartphones fell 19% from the second quarter of 2011 to 7.54 billion euro, which is more than painful for the global profit.
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Does Nokia Keep Falling?
Probably, somewhere in your heart, you feel sorry for Nokia, but at this moment the brand resembles so much with BlackBerry, that you can almost say they are twins, when it comes for losing money. Nokia’s chief executive, Stephen Elop, keeps saying everything it will ok, since he constantly reshapes the brand, but nothing good happens for Nokia.
The Finnish company was the world's leading mobile phone maker for more than a decade, but was overtaken by more adaptive brands, like Apple, Samsung, Sony or HTC. I don't want to seem too sensitive, but Charles Darwin's idea of natural selection got its shape in Nokia case, a brand which didn't understand that consumers expected something different from it, not a cold resistance with Symbian.
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