Strategy Analytics said Apple's profits had exceeded Nokia's for the first time in the United States. Nokia posted a third quarter operating profit of $1.1 billion from its handset unit, while sales of Apple's iPhone generated $1.6 billion in profit over the same period.
Nokia, the world's biggest handset maker, is facing increasing competition from the likes of Apple and Research in Motion, makers of the BlackBerry. The Finnish giant's share of the phone market decreased by six per cent in the third quarter, and it reported its first quarterly loss.
“Nokia’s profit margin for its handset division has been shrinking during the global economic downturn in 2009,” said Neil Mawston, an analyst with Strategy Analytics. “We believe the United States, where Nokia now trails Apple in market share, is the key to Nokia’s recovery in 2010.”
Despite Nokia's huge global sales, it has struggled to dominate the US market in the same way it does elsewhere. The company is planning to make its devices more open to change by carriers in order to win over big network operators who wish to add their own logos, software and services to the handsets.
“A successful fight on Apple’s high-profit home turf can simultaneously help to revitalise Nokia’s margins and help put a check on Apple’s surging growth,” said Mawston.
Nokia and Apple are currently locked in a legal dispute after the Finnish mobile phone company accused Apple's iPhone of infringing its copyright and patents. Nokia is seeking compensation for the alleged infringements.
“By refusing to agree appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation,” said Ilkka Rahnasto, Nokia’s vice president for legal and intellectual property.Read More.......
Nokia, the world's biggest handset maker, is facing increasing competition from the likes of Apple and Research in Motion, makers of the BlackBerry. The Finnish giant's share of the phone market decreased by six per cent in the third quarter, and it reported its first quarterly loss.
“Nokia’s profit margin for its handset division has been shrinking during the global economic downturn in 2009,” said Neil Mawston, an analyst with Strategy Analytics. “We believe the United States, where Nokia now trails Apple in market share, is the key to Nokia’s recovery in 2010.”
Despite Nokia's huge global sales, it has struggled to dominate the US market in the same way it does elsewhere. The company is planning to make its devices more open to change by carriers in order to win over big network operators who wish to add their own logos, software and services to the handsets.
“A successful fight on Apple’s high-profit home turf can simultaneously help to revitalise Nokia’s margins and help put a check on Apple’s surging growth,” said Mawston.
Nokia and Apple are currently locked in a legal dispute after the Finnish mobile phone company accused Apple's iPhone of infringing its copyright and patents. Nokia is seeking compensation for the alleged infringements.
“By refusing to agree appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation,” said Ilkka Rahnasto, Nokia’s vice president for legal and intellectual property.Read More.......
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