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2010-09-17
, 04:44
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Posts: 992 |
Thanked: 738 times |
Joined on Jun 2010
@ Low Earth Orbit
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#33
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The Following User Says Thank You to kureyon For This Useful Post: | ||
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2010-09-17
, 05:03
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Posts: 3,159 |
Thanked: 2,023 times |
Joined on Feb 2008
@ Finland
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#34
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http://m.gizmodo.com/5638995/nokia-i...alds-of-phones
I know Gizmodo and Engadget are frowned on here (to mainstream for what we consider to be a geek site). But this is a very good article (and if McDonalds have poor customer services then I agree completely).
I am shocked to hear that Nokia's profits dropped from $9bn to $300m in just two years. That is the most shocking profit drop I have ever heard and probably one of the greatest drops in history for any company. Shows how much trouble Nokia is in despite what people may think here. Yes they sell a billion phones but profits are in the high end where Nokia has nothing for now.
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2010-09-17
, 05:10
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Posts: 3,159 |
Thanked: 2,023 times |
Joined on Feb 2008
@ Finland
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#35
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2. The more money a company makes the more money it has for R&D which means the more likely it is to make a super amazing product.
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2010-09-17
, 07:39
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Posts: 1,179 |
Thanked: 770 times |
Joined on Nov 2009
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#36
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2010-09-17
, 07:44
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Posts: 1,179 |
Thanked: 770 times |
Joined on Nov 2009
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#37
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oh never mind the earlier questions, I just got the answer: you just don't get it.
profits are for owners. and 500% increase to R&D budget doesn't mean 500% better devices anyway....
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2010-09-17
, 07:53
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Posts: 1,179 |
Thanked: 770 times |
Joined on Nov 2009
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#38
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You don't read a lot of financial reports, do you?
First, the numbers you quote are not profit but net income. Their gross profit was actually down from 25B in 2007 to 19B in 2009. After you take from this all the operating expenses (R&D, marketing, administrative) taxes, liabilities etc you get the net income. Because it takes time to cut down expenses, a 20% drop in profit can be easily translated to a huge drop in income.
In addition, they're comparing Nokia's best year ever (2007) to Nokia's worst year ever (2009). The 2010 numbers so far are not as bad as 2009. In 2009, there was a huge worldwide financial crisis, which was also a factor, together with more than 1B dollars of non-recurring expenses.
Nokia is definitely in trouble because of shrinking gross margins, lack of presence in the US, lack of commercially successful high-end smartphone, and losses from some of its other devisions (esp. Siemens-Nokia networks), but looking at net income alone gives a distorted picture and make things look worth than they actually are.
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2010-09-17
, 08:43
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Posts: 422 |
Thanked: 320 times |
Joined on Oct 2009
@ Israel
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#39
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Well Samsung gets away with it by using an operating system with loads of traction. Just like Motorola and HTC.
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2010-09-17
, 09:09
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Posts: 1,179 |
Thanked: 770 times |
Joined on Nov 2009
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#40
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Well Nokia shouldn't be worried then, as Nokia have MeeGo and Symbian - right?
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Tags |
troll alert, wifries, world hunger |
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