The world’s largest mobile phone maker reported
third-quarter net profit of euro529 million ($733 million). The profit compares
to a net loss of euro559 million in the third quarter last year.
Net sales in the quarter grew 5 percent to euro10.2 billion.
Nokia’s profits were stronger than expected and its stock
jumped 7 percent to euro8.25 ($11.44) in Helsinki.
The company said it was shaking up product development in
its Symbian smart phone business as it struggles to cope with competition from
Apple’s iPhone, Research In Motion’s Blackberry and Google’ Inc.’s Android
software.
Nokia said it will “accelerate its transformation and
increase effectiveness... including simplifying operations in product creation
in Nokia’s Symbian smart phones organization” as it struggles against rivals.
The iPhone has set the standard for smart phones for many
design-conscious consumers, while Research In Motion Ltd.’s BlackBerrys have
been the favorite of the corporate set. More recently, Google Inc.’s Android
software has emerged as the choice for phone makers that want to challenge the
iPhone.
Nokia’s Symbian operating system is older than Apple’s
software and wasn’t designed from the ground up for touch screen phones. Other
manufacturers that used Symbian have mainly jumped ship to Android.
Elop, a Canadian who took Sept. 10 after veteran Olli-Pekka
Kallasvuo was dismissed, is the first non-Finn to run the company.
The choice of a North American executive was largely seen as
reflecting the increasing dominance of US and Canadian companies in the
evolution of the top end mobile phone business.
Nokia, once the bellwether of the device business, has
disappointed markets that had expected something fresh and new from a company
that once had the innovative edge.
Although Nokia last month unveiled its new flagship
touch-screen N8 model, which has been generally well received, it was too late
for the third quarter and the company has pinned its hopes on the last quarter
for a pickup.
But it warned that it expects lower device sales in the
fourth quarter, of between euro8.2 billion and euro8.7 billion.
Nokia also slightly revised up previous estimates saying
that it now expects the global device market to grow more than 10 percent this
year but cautioned that it will lose market share in the full year.
“Some of our most recent product launches illustrate that we
have the talent, the capacity to innovate, and the resources necessary to lead
through this period of disruption,” Elop said.
“We will make both the strategic and operational
improvements necessary to ensure that we continue to delight our customers and
deliver superior financial results to our shareholders.”
Nokia sold 110.4 million devices in the period, up 2 percent
on the same period in 2009.
