Nokia. Remember them? They are the world’s largest seller of cell phone. But then came the iPhone and Android, and the spotlight mostly left the Espoo, Finland company. Perhaps that was the meaning behind a statement Thursday by Nokia’s CEO. “Nokia faces some significant challenges,” former Microsoft exec Stephen Elop remarked. In the memorable words of Homer Simpson: well, duhhh.
Although Elop didn’t mention Apple or Google by name, the Nokia leader obviously had them in mind when the phone maker reported a drop in net income to $1.02 billion, down from $1.29 billion during the same time last year. Additionally, Nokia’s share of the smartphone market during the last three fiscal months of 2010 fell to 31 percent, a drop from 40 percent during the fourth quarter of 2009.
“The industry changed and now it’s time for Nokia to change faster,” Elop said. Fast is the operative word. Apple reported $10.5 billion from iPhone revenue over just the last quarter – $6 billion in profit, a 78 percent increase. Meanwhile, both Apple and Google’s carrier partners are releasing a rainbow of Android-powered devices, turning what had been Nokia’s commanding lead into a shaky patch of ground over a very deep chasm.
