Nokia's earnings plunge 73%, Nintendo sees first annual loss
On the heels of Apple's announcement of the biggest quarter in company history, two of the iPhone maker's rivals -- Nokia and Nintendo -- have reported significant losses.
Nokia's Windows Phones off to a slow start
Nokia Oyj saw a 73 percent drop in fourth-quarter earnings, the company reported on Thursday. While Apple saw sales of 37 million iPhones in the holiday quarter, Nokia sold just 1 million of its new "Lumia" Windows Phones since it debuted in mid-November, according to Reuters.
Going forward, the picture isn't much better for Nokia, as the company expects its phone business to be around break-even in the first quarter of calendar 2012. That's well below what analysts expected the company to project.
Still, the Finnish handset maker's fourth-quarter earnings per share of 0.06 euro was better than the market expected. Analysts generally predicted Nokia would report earnings per share of around 0.04 euro.
Nokia was aided in the quarter by a $250 million payment from Microsoft, as part of the agreement between the two companies to release handsets based on the Windows Phone platform. Nokia announced nearly a year ago that it would ditch its proprietary Symbian platform and instead feature Windows Phone on its high-end smartphones going forward.
Reacting to Nokia's earnings, analysts said that the company needs to initiate a strong push for its smartphones running Windows Phone if it hopes to push Microsoft's platform beyond the 1 percent to 2 percent share it currently holds.
Nokia's Lumia 800 (left) and Lumia 710 are its first Windows Phones.
Nintendo posts first annual loss in history
Japanese game maker Nintendo revealed on Thursday it expects to post its first full-year loss at an operating level in company history. Nintendo publicly revealed that it expects an annual operating loss of 45 billion yen, or $575 million U.S., which is significantly greater than analyst expectations of a 4.2 billion yen loss.
Nintendo also cut annual sales forecasts for its once-dominant Nintendo Wii console from 12 million to 10 million. In addition, sales of the Nintendo 3DS portable game console were slashed from 16 million to 14 million.
"We had higher expectations for the year-end season, but failed to meet them," Nintendo President Satoru Iwata said to reports in Osaka, Japan.
Nintendo drastically cut the price of the 3DS by $80 last year only months after it was released. Now available for $169.99 in the U.S., the console faces significant pressure from smartphones like Apple's iPhone, along with the iPod touch.
Sales of the 3DS did pick up considerably after Nintendo cut the price and began to release blockbuster titles like "Mario Kart 7" and "Super Mario 3D Land." But the Wii has been overtaken by rivals like Microsoft's Xbox 360, and Nintendo must wait for its successor, the Wii U, to be released later this year.
The Wii U will be an HDTV-based console that features a controller with a 6.2-inch touchscreen. The controller immediately drew comparisons to the iPad when it was announced, but unlike the pairing of an iPad and Apple TV, in which the iPad sends content to the Apple TV, Nintendo's Wii U is powered by a traditional console capable of 1080P graphics that will be required to stream content to the tablet controller.
Comments
id rather use real controls then have use bad touch screen only ones. why i got a 3ds and a iphone 4s.
So you got the 4S because of the 3DS' bad touchscreen controls. Got it.
And you signed up three years ago and are just posting now?
So you got the 4S because of the 3DS' bad touchscreen controls. Got it.
That actually doesn't make any sense. A dedicated gaming console's controls trump that a touchscreen device for games. And I'll also take a stylus for using my thumbs for games as well, provided it allows for far greater accuracy without obscuring the screen nearly as much.
Going forward, the picture isn't much better for Nokia, as the company expects its phone business to be around break-even in the first quarter of calendar 2012. That's well below what analysts expected the company to project.
cool. let's start punishing companies when analysts' projections of a company's projections fall short.
nintendos problem is the fact that the wii was so underpowered when it released. Nintendo has to come out with the WII U . Also the american currency vs japanese does not help either since nintendo exports a lot of its devices to america so with the yen being worth more then the dollar it gets expensive.
PS why is the nintendo states here to begin with. This has nothing to do with apple.
? with the yen being worth more then the dollar it gets expensive.
One yen is worth more than one dollar now? Taiyaki must be a luxury commodity now?
PS why is the nintendo states here to begin with. This has nothing to do with apple.
It has everything to do with Apple. Apple is the reason for this loss.
http://www.vgchartz.com/
Nintendo's failure to adapt in the mobile space is biting them in the ass
It's way too early for this. The 3DS, since the price drop, has been out-performing the original DS at the same point in time. What many sites, including AI, are failing to report is that the loss is mostly due to the strong yen. Nintendo lost 50 billion yen on the foreign exchange alone.
Cite: http://www.nintendo.co.jp/ir/pdf/201...%3E%3Cp%3EThey
The problem isn't Nintendo; it's the shitty US dollar. If Apple were based out of Japan, their quarterly profits would have looked FAR different.
It has everything to do with Apple. Apple is the reason for this loss.
That's cute, but no.
On the heels of Apple's announcement of the biggest quarter in company history, two of the iPhone maker's rivals -- Nokia and Nintendo -- have reported significant losses.
It is sad to see this fate befall Nokia. That being said, anybody who likes Windows phone is a fool.
So you got the 4S because of the 3DS' bad touchscreen controls. Got it.
And you signed up three years ago and are just posting now?
How is this in any way "moderating" the forum?
The problem isn't Nintendo; it's the shitty US dollar. If Apple were based out of Japan, their quarterly profits would have looked FAR different.
The dollar has nothing to do with the high Yen at this point in time. It is entirely a Japanese problem.
Japan is a country with dire economic problems. It?s in a serious recession. It has an aging population and a shrinking workforce. The country is in massive debt and already has some of the lowest interest rates possible, which discourages domestic investment. There is also a lot of Japanese investment abroad.
Another reason for the strong yen in recent years is what?s known as the ?carry trade?. This is when investors buy currencies with low interest rates and use them to buy currencies with high interest rates. They then get the money from the difference. Many global investors bought yen years ago to make money this way. But when recession hit the world economy, this became risky and they paid it back. In order to pay the money back, they needed to buy yen, and up it goes.
The yen has also been experiencing deflation. Japan exports more than it imports. As long as the economy is based more on exports, the currency stays strong. Import-based economies have weaker currencies.
How is this in any way "moderating" the forum?
Why do you think a forum member who gets moderator status shouldn't be allowed to post as they were posting prior to becoming a mod?
How is this in any way "moderating" the forum?
Sorry, I'll go back to just deleting spam and keeping the peace in threads that turn nasty or political. I obviously don't have any right to ask questions or post at all.
That's cute, but no.
That's your rebuttal? "No."? All signs point to it being the case.
cool. let's start punishing companies when analysts' projections of a company's projections fall short.
Uh, that's how it works, champ.
Why do you think a forum member who gets moderator status shouldn't be allowed to post as they were posting prior to becoming a mod?
My problem is not with Tallest Skil, per se, but with the potential weight that words posted by one who has the title "Global Moderator" may carry.
Our opinions may differ, but I feel that if one wishes to post, then post. If one wishes to moderate the forum, do so.