Mixed fortunes
Nokia has posted a profit and beaten expectations with its third quarter earnings, as it repositions itself to try and recapture some of its former phone glory.
Nokia made a €529m net profit in the three months to 30 September, beating many analysts' expectations who predicted the company's profit would be just under €230m, according to The WSJ.
It marks a huge turnaround for the mobile giant, which suffered a €559m loss this time a year earlier and the U-turn will no doubt please Nokia's new CEO, Stephen Elop.
It is widely believed expectations of new smartphones like the N8 and Symbian 3 have helped contribute to the results as well as the launch of the revamped Ovi store and current handsets selling for a slightly higher price tag.
Elop said: "In the five weeks since joining Nokia, I have found a company with many great strengths and a history of achievement that are second to none in the industry. And yet our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry."
"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. 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," he added.
When Elop was appointed, he was given the go-ahead to make changes he feels are necessary for Nokia to compete with smartphone leaders Android and Apple and it is not clear whether Symbian 3 will be a part of Nokia's strategy going forward, as the firm has always hinted that MeeGo is the future for its high end handsets.
Even with its phone mostly sporting an older version of Symbian, Nokia's handset sales rose 2 percent year-on-year, shifting 110m mobiles, the average selling price of which was €65, €1 higher than last year.
Seemingly optimistic, the firm also increased its handset market volume growth outlook, to just over 10 percent for 2010, compared to 2009 and predicted it will see Q4 sales of €8.2bn - €8.7bn.
However, it is not all good news as Nokia plans to axe 1,800 jobs to streamline its production organisation for Symbian handsets in a move designed to bring new products to market faster than before, the BBC reported.
Nokia's shares reportedly bounced 8 percent in response the positive results, in what investors no doubt will be hoping is the start of reversing a steady downward trend.
