Nokia has announced their interim report Q1 2013, involving their products and services indicate that despite the pressures from competitors’ they still manage profitability.
"At the highest level, we are pleased that Nokia Group achieved underlying operating profitability for the third quarter in a row. While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well.
We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter. Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group's cash position. On the other hand, our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges.
All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders."
Nokia desires its Products & Services non-IFRS operating margin within the 2nd quarter 2013 to be roughly unfavorable 2 %, negative or positive 4 percentage points. This perspective is dependent on Nokia’s anticipation relating to several aspects, such as:
Competitive business dynamics carrying on in a wrong way have an effect on the Cell phones as well as Smart Gadgets business units;
- Buyer demand for the solutions, specifically for their Cellphones solutions;
- Ongoing ramp up for their Lumia Smartphone’s;
- Anticipated boosts in Products & Services' operating costs; as well as
- The macroeconomic surroundings