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The financial crisis VS the giant telecommunication companies

Wednesday, April 22, 2009
The financial crisis didn't spare the current number one mobile phone manufacturer - Nokia. They announced their Q1 financial status and there are huge drops in every one aspect.

First and most terrifying is the profit drop. The current profit calculates in 122 million euro compared to the Q1 2008 when it was 1.2 billion euro. It's 90% down.
Next are the sales of course. This year Nokia made 9.28 billion euro, but in Q1 2008 the company succeed to make 12.7 billion euro. The difference is 27% down.

In time of crisis the first step is job cutting and here it comes. Nokia gave the axe to 1700 employees worldwide only in March.

Continuing the dreary Q1 results, the situation is far worse with Sony Ericsson.
They posted a net loss of 358 million euro, that’s before taxes and without counting all the restructuring charges.

In response to falling sales, Sony Ericsson said it plans to cut 2,000 additional employees this year (they already announced a work force reduction of 2,000 employees earlier this year).
They expect to save about 600 million euro by the middle of 2010 with the job cuts and restructuring efforts.
Nobody really knows when the economic downturn will end, but Nokia still stand their position as a top manufacturer with 37% market share (2% down compared to Q1 2008).

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