Nokia and Sony Ericsson profits take a dive

on 07/16/2009, filed in Home > CellPhones

The handset market has not been easy for everyone: former leaders Nokia and Sony Ericsson are having a hard time posting good numbers, although, Nokia has managed to earn $380M (-65%) while Sony Ericsson was posting a loss of $299M.

Nokia has had difficulties in developed countries as the coolness of its brand is eroding. The company has engaged in a wide range of initiatives (OS, store, handsets) to change course, but this will likely take at least a couple of years to form.

Sony Ericsson is in deep trouble: it does not have a good way of taking the lead in terms of software or handset design.

Nokia: Nokia is a Finnish communications company that was the largest phone vendor (per unit) between 1988 to 2012. The company's history go back to 1871 but the Nokia that we know today (the Nokia corporation) was founded in 1967 by the merger of three Finnish companies. It is then that Nokia worked on networking equipment and was ultimately involved in the launch of the first cellular network in 1981 (Mobira Oy). Nokia because a key developer of GSM, the standard that we all know today. Although Nokia still produces a range of phones that includes entry-level handsets and Symbian smartphones, the company is counting on the Windows Phone OS to regain the share that it once had. The current flagship Windows Phone device from Nokia is the Lumia 920.

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