Nokia's earnings plunge 73%, Nintendo sees first annual loss

Posted:
in iPhone edited January 2014


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.

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Comments

  • Reply 1 of 74
    While I understand fully just how much money Nintendo would rake in by making all of their games available for iOS (and that means ALL of them. Anything would be fair game), they'll never do it. And that's all right.
  • Reply 2 of 74
    id rather use real controls then have use bad touch screen only ones. why i got a 3ds and a iphone 4s.
  • Reply 3 of 74
    Quote:
    Originally Posted by Coojo View Post


    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?
  • Reply 4 of 74
    Quote:
    Originally Posted by Tallest Skil View Post


    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.
  • Reply 5 of 74
    poochpooch Posts: 768member
    Quote:
    Originally Posted by AppleInsider View Post


    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.
  • Reply 6 of 74
    solipsismxsolipsismx Posts: 19,566member
    Nokia and WP7 are great HW and OS yet are too late to market to be making any in-roads yet RiM expects to release BB 10 at the end of 2012? If Nokia and MS can't do it I don't think RiM can do it 1.5 years later than them. At least with Nokia and MS there are very deep pockets they can use to maintain and advance their HW and OS, respectively, until there is an opening. I can't say the same thing about RiM. On top of that, MS has an SDK that is good while I don't think there is anything good for their QNX-based OS at this time.
  • Reply 7 of 74
    This has more to do with the Wii then the actual 3ds. The 3ds sold 15million units this year. Thats a lot for one year (for nintendo anyway).



    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.
  • Reply 8 of 74
    Looks like time for yet another Microsoft-funded analyst to come out with yet another "Microsoft's Lumia 5477KJW Will Kill Apple's iPhone 3G in Q5 2064" report.
  • Reply 9 of 74
    Quote:
    Originally Posted by majortom1981 View Post


    ? 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?



    Quote:

    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.
  • Reply 10 of 74
    Nintendo's failure to adapt in the mobile space is biting them in the ass. If they had thought ahead, they'd have focused on software, maybe even pushing out their own smartphone with a focus on gaming, but the latter is iffy. They should've worked on a more-or-less universal controller accessory for Android/iPhones as touchscreens suck horridly for a lot of games. I can't bloody play Marathon on that crummy touchscreen interface. They could build a framework for it and release it free, then develop a number of their own titles to tie into it and help push sales of the controller and other developers could well follow suit. If they played their cards right, they could be getting a nice, fat chunk of the mobile gaming space themselves, but they're stuck in a dying market and a dying business model. Pity.
  • Reply 11 of 74
    thejdthejd Posts: 37member
    You know, the Apple TV we're waiting for with Siri and that gesture remote control we read about the other day is going to render Nintendo obsolete, especially with Microsoft's Kinect already out there. The Wii U may be outdated before it even hits the production line.
  • Reply 12 of 74
    the wii has not been overtaken by anything. The only system about to be overtaken is the XBox 360 which will fall into last place.



    http://www.vgchartz.com/
  • Reply 13 of 74
    Quote:
    Originally Posted by Thefinaleofseem View Post


    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.





    Quote:
    Originally Posted by Tallest Skil View Post


    It has everything to do with Apple. Apple is the reason for this loss.



    That's cute, but no.
  • Reply 14 of 74
    Quote:
    Originally Posted by AppleInsider View Post


    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.
  • Reply 15 of 74
    Quote:
    Originally Posted by Tallest Skil View Post


    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?
  • Reply 16 of 74
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by redbarchetta View Post


    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.
  • Reply 17 of 74
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by PowerMach View Post


    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?
  • Reply 18 of 74
    Quote:
    Originally Posted by PowerMach View Post


    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.



    Quote:
    Originally Posted by redbarchetta View Post


    That's cute, but no.



    That's your rebuttal? "No."? All signs point to it being the case.
  • Reply 19 of 74
    sdw2001sdw2001 Posts: 18,020member
    Quote:
    Originally Posted by Pooch View Post


    cool. let's start punishing companies when analysts' projections of a company's projections fall short.



    Uh, that's how it works, champ.
  • Reply 20 of 74
    Quote:
    Originally Posted by SolipsismX View Post


    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.
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