Nokia India profits decline

Chennai, Mar 18 (TruthDive): Nokia, the Finnish mobile phone maker posted a 23% decline in revenue in India. Its revenue was €2,227 million ending 2012 while in 2011, it posted €2,923 million. It is for the second time that the mobile phone maker reported a decline in sales.

Globally for Nokia, India is the second largest market after China. In 2010, Nokia’s net sales in India were €2,952 million.

Nokia attributes the currency fluctuations impact on its revenue and increasing competition from brands. In India, China and Brazil where it has a strong presence had to deal with local currency against the US dollar.

Last year, Indian rupee against euro dipped by 2.3%. Locally made mobile handsets in India, China, Indonesia are popular in certain pockets and that has been cutting down the growth in sales. To offset the decline, Nokia was going to come out with innovative models this year, said the company statement.

Last week, telecom operator Videocon mobile services announced that it has selected Finnish telecom mobile maker,Nokia Siemens Network for its 4G services network in the country. The 4G network,apart from the internet will offer TV, HDTV and digital quality broadcast of video.

Nokia will get access to UP (East and West), Bihar, Haryana, Gujarat and Madhya Pradesh where Videocon has 4G spectrum after paying Rs 2,221.44 crore. Nokia Siemens too expressed its pleasure to partner with Videocon.

Towards the quarter ending 2012, the import of smartphones by India crossed 5 million units. The reason being the drop in 3G tariffs and more handsets being priced low has made the youth to get the data fast through 3G and 4G.

The jump in imports of mobiles in July-September 2012 was 38%. In 2012, the Indian mobile market was 218 million handsets recording a 16% jump. Nokia’s manufacturing facility in Sriperumbudur near Chennai is facing a tax evasion charge from IT. It has also announced a wage revision for the plant workers.

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