Finnish vendor posts strong Q3 financials, but share of global devices market falls to just 30%; 1,800 positions to go under streamlining plan.
Nokia's third-quarter swing to profit came in ahead of analysts' expectations, but the numbers published by the Finnish vendor on Thursday were overshadowed by the news that it plans to cut 1,800 jobs as part of a streamlining initiative.
In addition, Nokia revealed that its devices market share has fallen yet further, attributing that slide at least in part to a greater exposure to industrywide component shortages than rival handset makers, and announced that the first phone based on its new Meego operating system will not make it to market this year.
Presiding over his first results announcement as Nokia CEO, Stephen Elop (photo) admitted that the company faces some tough challenges, but described it as a "landscape of unpolished gems".
"There is an embarrassment of riches with Nokia," said Elop, adding that there also are opportunities to create greater efficiencies and to streamline the business.
The changes will come at the vendor's Symbian smartphones unit, where the focus will be on creating a common developer ecosystem and streamlining software development, and also in services, where the company will concentrate on creating an integrated Ovi experience across its entire device range.
But the process will also bring with it 1,800 job losses, "in devices and services, and corporate functions," Elop said, without elaborating.
"Our devices and services business delivered, but we need to achieve more," Elop said.
The vendor reported a profit of €322 million, compared with a loss of €913 million in the year-ago period; its profit attributable to shareholders came in at €529 million from a loss of €559 million. Operating profit stood at €403 million, compared to a €426 million loss. Net sales rose 4.7% to €10.27 billion.
Devices & Services accounted for €7.17 billion of that sales total, with the bulk of the remainder - €2.94 billion – contributed by Nokia Siemens Networks. Devices & Services was also the company's main source of operating profit at €807 million, up from €785 million. NSN posted an operating loss of €282 million, a considerable improvement on its €1.11 billion operating loss in Q3 last year.
Nokia shipped 110.4 million devices during the quarter, an increase of 2% year-on-year,
