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24/01/2002
Mobile phone sector looks set to profit in 2002
Finnish mobile phone giant Nokia has reported better then anticipated profits for the fourth quarter, defying predictions of a downturn in performance in the telecoms sector.
The firm revealed earnings of £1.01 billion (1.63bn euros) before tax and one-off charges, a figure that was down on the 1.77bn euros reported one year ago, but in excess of analysts’ predictions for the quarter.
Nokia chief executive and chairman Jorma Ollila commented: “As we enter 2002 our strategic position is better than ever. I am more than happy with Nokia's fourth quarter performance.
“We achieved significant market share gains maintaining excellent profitability in our mobile phone business and succeeded in substantially reducing the impact of a challenging environment on our networks business."
Handset sales across the sector decreased dramatically throughout 2001, due to market saturation and the slower than expected introduction of advances such as GPRS and third-generation mobiles.
However, recent research into mobile phone firms throughout Europe has painted a brighter picture than was initially estimated for a sector hard hit by profit losses and increasing debt.
The report estimated that market saturation could now work in the companies’ favour, as the cost of acquiring a new customer works out at around £200 – an expensive amount that is divided numerous ways before the true amount of profit becomes apparent. Some firms were spending almost 25 per cent of all operating expenses on signing up new subscribers.
However, based on the principle that it’s cheaper to sell to an existing customer than to acquire a new one, the introduction of third generation handsets could persuade customers to upgrade to take advantage of the new services, thereby ensuring a profit for mobile phone firms for some time to come. (CL)
The firm revealed earnings of £1.01 billion (1.63bn euros) before tax and one-off charges, a figure that was down on the 1.77bn euros reported one year ago, but in excess of analysts’ predictions for the quarter.
Nokia chief executive and chairman Jorma Ollila commented: “As we enter 2002 our strategic position is better than ever. I am more than happy with Nokia's fourth quarter performance.
“We achieved significant market share gains maintaining excellent profitability in our mobile phone business and succeeded in substantially reducing the impact of a challenging environment on our networks business."
Handset sales across the sector decreased dramatically throughout 2001, due to market saturation and the slower than expected introduction of advances such as GPRS and third-generation mobiles.
However, recent research into mobile phone firms throughout Europe has painted a brighter picture than was initially estimated for a sector hard hit by profit losses and increasing debt.
The report estimated that market saturation could now work in the companies’ favour, as the cost of acquiring a new customer works out at around £200 – an expensive amount that is divided numerous ways before the true amount of profit becomes apparent. Some firms were spending almost 25 per cent of all operating expenses on signing up new subscribers.
However, based on the principle that it’s cheaper to sell to an existing customer than to acquire a new one, the introduction of third generation handsets could persuade customers to upgrade to take advantage of the new services, thereby ensuring a profit for mobile phone firms for some time to come. (CL)
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01 July 2002
Mobile users encouraged to save money when abroad
Visitors from the UK using their mobile phone in Europe this summer can save themselves around 40 per cent or more on their bill by following advice published by Oftel.
Mobile users encouraged to save money when abroad
Visitors from the UK using their mobile phone in Europe this summer can save themselves around 40 per cent or more on their bill by following advice published by Oftel.
27 June 2002
Dixons profit boost despite share fall
UK electronic retailer Dixons has reported a rise in profits, despite a fall in mobile phone and PC sales. As the owner of PC World, electrical appliance chain Currys and The Link mobile phone shop, the company saw pre-tax profits rise 7% to £297.2m in the year to the end of April.
Dixons profit boost despite share fall
UK electronic retailer Dixons has reported a rise in profits, despite a fall in mobile phone and PC sales. As the owner of PC World, electrical appliance chain Currys and The Link mobile phone shop, the company saw pre-tax profits rise 7% to £297.2m in the year to the end of April.
06 June 2002
T-Mobile launches picture messaging service
T-Mobile, formerly One2One, has launched the first true mobile-to-mobile multimedia messaging service (MMS) in the UK.
T-Mobile launches picture messaging service
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08 January 2002
Mobile phone thefts on the rise
A study published by the Home Office has revealed that thefts of mobile phones in mainland Britain have doubled in the last year. The research suggested more than 700,000 mobile phones were snatched last year which is more than double the 330,000 figure officially recorded by police.
Mobile phone thefts on the rise
A study published by the Home Office has revealed that thefts of mobile phones in mainland Britain have doubled in the last year. The research suggested more than 700,000 mobile phones were snatched last year which is more than double the 330,000 figure officially recorded by police.
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