Nokia (NOK) shares dropped 10% today after it said cost-cutting competitors were eating its market share in Q3, and that a new phone was coming along slower than expected. AP:
Nokia said it was losing share because of its “tactical decision” not to match the aggressive price cuts of some of its competitors, seeking instead to be “sustainably profitable in the longer term.” It also cited tough competition in emerging markets and a slow “ramp-up of a mid-range Nokia device.”
Nokia is still the world’s dominant mobile phone maker, and should be OK. But the company faces headwinds in several areas of its business: For example, we’re still waiting to see how it’ll be able to effectively compete with Apple’s (AAPL) new, cheaper iPhone 3G — which is only now being sold in many of Nokia’s most important markets — and new BlackBerry gadgets from Research In Motion, like the 3G “Bold” and touchscreen “Storm.” High-end smartphones are a fast-growing market, and only make up a small percentage of Nokia’s unit sales — but they’re significant to its revenues and earnings.
Nokia’s ‘Comes With Music’ Subscription Service Launching In U.K. Next Month, Still Missing Price Tag, Carrier Partners
Nokia Q2 In Line, ‘Optimistic’ About Industry; Now Here Comes The Hard Part
Business Insider Emails & Alerts
Site highlights each day to your inbox.