Not so long ago Nokia had caused disappointments to major telecom operators in Europe, owing ‘blind alley’ to its Lumias smartphones. But it seems, the Finnish Company has other factors as well that contributed massively to ruin prospects. Reportedly as a consequence of unvarying, incessant trouncing and pressure, Nokia recently dropped its Sales Chief Executive and have promised to make a strong comeback.
The company even settled upon slashing down more costs to help regain the incurred losses. However, the scuffle to reinvent the niche and compete equally powerfully with other smartphone rivals seems to be a tough one at the moment. Nonetheless to provide an insight, Nokia unfortunately witnessed a heavy net loss of 1.6 billion Euros during the first quarter phase – and stepped into a wreckage by continuous falling sales and overly restructuring charges.
In fact, analysts have maintained that the Chief Executive Elop focused largely on improving the sales of Nokia Lumia smartphones, which many thought would match strengths with Apple and Samsung. But unfortunately, the sales could not help swinging down in a significant way.
Ostensibly, some have even believed that the Finnish Company will finally be overtaken as the world’s largest mobile devices manufacturer by Samsung. Although it may arch shoulders for the company’s loyalists, Nokia however has been swearing up and down to reclaim a top position which it used to savor once.
At the same time, the efforts by Nokia appeared pretty evident too, with the release of the company’s turnaround plan in February 2011. To go by the chief’s strategy, Nokia was eventually taken to favor Microsoft’s Windows operating system – showing yet another possibility for the mobile maker to outweigh competitive Apple iPhone and Samsung Galaxy.
While the turnaround plan was rendered a green signal, the shares however could not help but crash down disappointingly by two-thirds. Due to which, Nokia has now lost on a large number of investors who possibly could enhance the company’s position and enable it to recuperate the spot in the market. What has added to the misfortune even more is the recent drop in Lumia phones!
According to certain analysts, the sales of the Windows-based Lumia smartphones have fallen too in the last week, which definitely raises fresh concerns for the company as well for the market. But on the whole, analysts believe that weak moves in a strategy, decision to opt for Windows OS over options like Google Android, and lack of innovation in mobile devices mainly contributed to the Nokia downfall.
Besides the poor performance during the first quarter, the company has also experienced another setback in the form of a loss of 0.08 Euros per share. Concurrently, Nokia’s Sales Head Colin Giles would be leaving the organization in June as it restructures the sales team.
Meanwhile, Elop would be given some more time to work on the strategies once again and to prove the decision to choose Windows OS was the right one (as no other opportunity will be given by Nokia). Until then, it might be a bit too early to comment on the planning and performance of the new CEO.
Via: Reuters