Nokia chief under pressure as earnings slump

NOKIA’s chief executive is coming under increasing pressure, as the world’s biggest mobile phone maker saw its earnings slump in the face of competition from Apple and RIM in the key smartphone segment.

Chief executive Olli-Pekka Kallasvuo, who according to the Wall Street Journal could lose his job because of his inability to hike Nokia’s performance in the smartphone market, called for an end to rumours about his departure.

From April to June, Nokia posted a net profit of €227 million in the second quarter, down 40% from €380 million for the same quarter last year.

The Finnish company’s net sales were up 1.0% on a year-to-year basis to €10.0 billion, and sales in its key devices and services unit were up 3.0% on a year-to-year basis to €6.8 billion, but down 2.0% year-to-year in constant currency.

Nokia sold 111.1 million devices in the second quarter, up 8.0% on a year-to-year basis.

But its market share stood at 33%, down 35% from last year and equal to the first quarter, while the average selling price of its devices was down to €61 from €64 a year earlier.

Nokia forecast its devices and services sales for the next quarter would total €6.7bn-7.2bn.