Nokia More Luck Make Simple Cell Phone

Nokia is said to be more profitable than simple phones rather than smartphones. Although the two product lines that are being encroached on their rivals.

As Reuters on Thursday (07/21/2011), Nokia operating profit is greater than a simple cell phone than a smartphone.

Margins of both the business was undergoing shrinkage. Simple mobile phone manufacturer Nokia have to deal with Asia, especially China, while on the rival smartphones like HTC, Samsung and Apple's surge.

Nokia profit margins of the smartphone is said to drop to 6.2 percent in the first quarter from 10.4 percent in the previous year. While the phone is simple, down from 19.4 to 16.5 percent.

Just to compare, HTC has reported an operating profit margin increased to 15.8 percent in the first quarter. The key word here is rising.

"Nokia is facing the decline of the smartphone market by focusing on middle and discount rates, this has a direct impact on margins and profits," said IDC analyst, Francisco Jeronimo.

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