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Stephen Elop, chief executive of Nokia, has been trying to change the message the company sends to investors. “We are trying to make people understand the company's entire portfolio. It's not just cell phone sales that count," he said. The op, during a meeting with journalists in São Paulo.
The statement is a clear attempt to shift the focus of attention from critics and market experts, before the group's balance sheet in the third quarter of 2012 was released last week. According to him, it was the networks area that boosted the company's results, partially recovering the losses caused by the cell phone division. THE Nokia Siemens Networks (NSN) - j in the area of telecommunications network equipment that the Nokia keep with the german Siemens – posted a 5% increase in revenue and profit of €182 million, compared to a loss of €114 million in the same period in 2011.
Even so, the result was not enough to avoid the 4% drop in revenue from the Nokia as a whole, not its sixth consecutive loss (€969 million), but it momentarily encouraged investors (the company's shares rose by 8% in the earnings report) and gave the manufacturer ammunition. According to The op, the group's business Nokia are divided into five areas: smartphones from the Lumia, cheaper cell phones with the brand Asha, a portfolio of 30 thousand patents, Nokia Siemens Networks and the services of location e maps. Since taking charge of Nokia two years ago, the executive has been making changes in each of these segments.
The most prominent movement was the alliance with the Microsoft last year to use Windows Phone operating system and strengthen smartphone operation. The segment is the most complicated for the company, with losses and high capital consumption to develop. The activity has been financed, in large part, by sales of cheaper phones, which guarantee profit and revenue growth – for the simpler models, third-quarter revenue rose 3%, compared to a 37% drop in smartphones. Analysts expect sales of Windows phones to start picking up steam in 2013.
In the area of patents, The op stated that Nokia is finding ways to make better use of its inventions in of revenue, with talks about licensing, or lawsuits. “We will be more aggressive in that regard,” he said. Still, the company's future remains uncertain.
