Nokia Profit and Sales Grow, but Q1 Still Disappoints

From PC World: Nokia reported improved profits and revenue for the first quarter, but both numbers were below analysts' expectations. The company also lowered its operating margin outlook for 2010.

Nokia's first-quarter profit came in at €349 million (US$465 million), up from €122 million a year ago, helped by cost cuts and increased smartphone sales. Revenue grew by 3 percent and totaled €9.5 billion.

The company continues to face tough competition in the high-end sector of the mobile phone arena and challenging market conditions on the infrastructure side of the business, where it is represented by Nokia Siemens Networks, according to a statement.

Much has been made of Nokia's deficiencies in the smartphone segment. The company sold 21.5 million smartphones in the first quarter 2010, an increase of 57 percent compared the same period in 2009 and 3 percent more than in the fourth quarter of 2009. That means Nokia's market share now stands at 41 percent, a one point gain over the last quarter of 2009.

The growth mainly comes from lower priced smartphones. However, Nokia still doesn't have a high-end smartphone that can compete with the likes of the iPhone and the Google Nexus One and its sibling, the HTC Desire.

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