Nokia has recorded higher than expected first quarter results despite taking a knock from last year’s results for the same period.
The firm noted a 1.4 percent decline in profits for the first part of 2011 and forecast that the following quarters would also see declines, though the troubled phone maker still managed to out-perform the rock bottom expectations expected by many analysts.
According to Bloomberg, an average of estimates by 19 analysts for net profits came to $258 million, while the actual figure for profits reached $503 million, with a 9.2 percent rise in sales to $15.1 billion.
It seems that the MeeGo turncoat is not out of the woods just yet, with the match-made-in-heaven deal with the similarly struggling Windows Phone 7 not likely to come to fruition with Microsoft’s OS on Nokia’s handsets until later in the year, at the least.
The deal in question, put forward back in February by Nokia’s CEO and former Microsoft man Stephen Elop, was cemented yesterday in an official deal with Microsoft phone unit President Andy Lees stating that the two are racing ahead with plans.
“We’ve gotten to where we have gotten to faster than we thought,” Lees said, eloquently. “Now we know who is exactly writing each piece of code.”
It is thought Elop is embarking on a range of upheavals to continue the revival of Nokia, such as splitting the firm’s handset operations into both a smart phone and low end handset division and reducing the amount outside contractors and R&D costs, as well as of course ditching Symbian.
This is just the start of the long road back to prominence in the mobile phone market for the once dominant Nokia, with Apple’s record figures of 18.65 million iPhone units sold, raising profits to $5.99 billion, with a revenue jump of 83 percent to $24.7 billion.
Not to mention suspicions from within Nokia that the MSFT deal is more a takeover than a partnership.
Furthermore Nokia’s market share fell from 33 percent last year to 29 percent as its low end phones took a beating from Asian rivals as well as Apple’s prominence in the smartphone market.