Today Nokia announced a 20% revenue decline to $5.9b in Q1 – a long way short of the $6.5b expected. This time a really massive 21% slump in sales of their ‘dumbphones’ was blamed; as their Numia smartphones rose 27% to 5.6m units (QOQ). Let’s face it even that is small beer when compared to Apple and Samsung. Looks like consumers want cheaper and cheaper phones - and that applies to smartphones too now.
Nokia shares slumped nearly 13% on the news – giving up much of the gain for the year and sending them back to the nadir. Stephen Elop (he of the ‘burning platforms..” See Torn between burning alive or drowning) said two years ago that the transition in Nokia’s fortunes would take…two years. Looks like we are still waiting.
Right from the point when Nokia nailed their colours to the Microsoft mast, we have said that Microsoft should buy Nokia as they just have to ‘play’ in the mobile space. See my 10th Feb 2011 post etc. That argument is even stronger today than it was two years back – particularly as Windows 8 has failed to create the sales at one time expected.