Nokia CEO calls for end to speculation

Michael Carroll
23 Jul 2010
00:00
News
Daily News

Nokia’s chief executive says speculation regarding his future is harming the firm’s chances of recovery, after a dire second quarter when profits dived.

Olli-Pekka Kallasvuo told CNBC that rumors the vendor is looking to replace him were “not good for Nokia and must be brought to an end.”

The Wall Street Journal reported earlier this week that Nokia was looking for an outsider to head up the embattled handset firm. Kallasvuo said he would not comment on his position at the company.

The result followed two profit warnings as the Finnish firm has battled to find a smartphone to compete against Apple’s iPhone and Google’s Android range.

Nokia revealed that Q2 earrnings per share had fallen 40% to 6 euro cents per share from last year, with sales flat at €10.0 billion ($12.9b).

Revenue in the devices and services group was up just 3%, despite an 8% rise in shipments to 111.1 million units. The average selling price (ASP) of €61 was down from €62 in the previous quarter and €64 a year ago.

Kallasvuo said shipments were boosted by high demand in emerging markets where Nokia remains a strong player, adding that forthcoming Symbian ^3 smartphones would “kickstart Nokia’s fightback at the higher end of the market.”

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