Gartner says Nokia under pressure

Nokia results show a continued pressure in the high end of the market, stated Gartner research director for mobile devices, Carolina Milanesi.

Milanesi commented: “Nokia results show continued high pressure for the company in the high end market, which resulted in operating margins being down.

“It is interesting to look at the extra detail this quarter, with the split between S30 and S40, and the mobile computing and converged devices,” she continued. “If you look here, you see that performance in the higher end remained flat while sales were higher in the lower end. Also, ASP in the high end was only marginally up, I guess helped by the slightly higher volumes of n97 compared to previous quarter.”

She added: “The bottom line remains that Nokia needs to fix its high end offering if it wants to get its operating margins back on track.”

Milanesi stated that although at a first glance the outlook for Nokia in Q4 looks positive, Gartner remains concerned that the stable market share will be achieved with a continued sacrifice on the margins as products, such as the 5230 and 5530 drive sales.

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