Finnish mobile phone manufacturer, Nokia is expected to report a reduction in sales and loss in market share on Thursday. The company has an eventful month lined up as it plans to launch phones running the Microsoft Windows Phone 8 devices which it is relying on to rebuild its smartphone portfolio and regain its foothold in the market. The company lost out to Samsung and Apple in the high end devices and is falling short in the lower tiers of the market as Asian companies with cheaper alternatives thrive. Nokia also lost its place as the largest mobile phone manufacturer to Samsung which sold 86.6 million units against Nokia’s 83 million in the first quarter. This is the first time in 14 years that the Finnish manufacturer has relinquished its control on the ranking.
Investors are eager for the company to announce its results as they wait to see the effect the new line of phones has had on its sales. Specifically, investors will be keen to know if the Windows Phone platform and the company’s partnership with Microsoft have helped reverse the company’s downward trend, particularly in the American market where its presence is weak. According to the company, decline in sales of its Symbian based devices has been offset by the increased sales of the Windows Phone devices. The company sold 4 million Windows Phone devices in this quarter, which is twice what it did in the previous quarter.
The company had a market share of 40% in 2008 and fell to 29% in 2011. It is further expected to reduce this year and the company’s second quarter loss went up to €1.4 billion with sales reducing by 19% to €7.5 billion. The company lost out to competition from Apple’s iPhone and devices running Google’s Android platform. According to the CEO, the company lost sales because the transition between Symbian devices and the new generation of smartphones was not easy and that the company is still in the process of phasing out the older devices.
Nokia’s decline seems to be part of the general trend of Europe’s dwindling mobile industry as manufacturers shift production to Asia. Nokia is expected to report reduced sales but the upcoming device launches are sure to help it and regain some ground. However, the company has to act fast as its opportunities are getting smaller.
