The slow growth of Symbian^3, lack of marketing skills and the inability to see the future has taken a toll on Nokia’s sales. Today, Nokia announced its sales report for Q2 and the result isn’t too impressive. As a matter of fact, Nokia has finally admitted that its lacking behind from its competitors when it comes to Smartphone sales.
Nokia’s Smartphone sales are so down that it has now updated its sales target for the next half of the year which targets slightly lesser than the previously targeted figure. To be precise:
- Nokia now expects Devices & Services net sales to be at the lower end of, or slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2 billion for the second quarter 2010. This update is primarily due to lower than previously expected average selling prices and mobile device volumes.
- Nokia now expects Devices & Services non-IFRS operating margin to be at the lower end of, or slightly below, its previously expected range of 9% to 12% for the second quarter 2010
Over the last few years Nokia really hasn’t been able to keep up the pace with Smartphone giants like Apple, Google, HTC, Samsung and more. What lacks with Nokia is innovation. In my opinion Nokia makes awesome hardware just like HTC but it lags behind in the software department. Unless and until Nokia assures customers frequent improvements in the software department (and that has to be quick) people are not going to consume its products. Of course fanbois being the exceptions.