The world's top mobile phone maker Nokia today reported a return to profit in the third quarter, posting an unexpectedly strong net figure of €529m, but revised down its market share for 2010.
The group also said it would shed 1,800 jobs around the world, and its shares soared on the news. Nokia shares jumped 7.9% to €8.32 in Helsinki, as investors reacted to the marked improvement over the €559m loss posted for the third quarter in 2009.
Net sales of €10.27 billion were in line with industry expectations for the quarter. But Nokia took a beating in market share, which dropped to 30% in the third quarter, compared to 34% the same time last year and 33% in the second quarter of 2010.
The company, which had previously said it expected its full-year market share to remain flat in 2010, said today it now expected its market share this year to slip slightly compared to 2009.
Nokia also justified its 1,800 planned job cuts, saying it needed to streamline its Symbian smartphones division. Nokia continues to lead the mobile phone market, but is under pressure from the likes of Apple's iPhone, Research in Motion's BlackBerry, and smartphones running Google's Android operating system.
These are seen as faster and easier to use than Nokia's phones, which have not yet begun the transition from an outdated Symbian platform to the more promising Linux-based MeeGo platform.
'Our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry,' brand-new president and chief executive Stephen Elop said today.
