Fourth Quarter Round-Up: Apple Post Record Profits, Nintendo and Nokia Report Huge Losses
Many of the big tech companies have released their fourth quarter results from 2011 in recent days, and there were a few surprises, with Google missing their targets and Apple reporting mindblowing profits of $13.1 billion, while two of the biggest tech names of the past two decades, Nokia and Nintendo, have seen their fortunes change for the worse.
Nokia
Ten years ago everyone seemed to own a Nokia 3310, but now it’s their new Windows phones which are struggling to compete in the smartphone market, according to Reuters, with the company reporting a 73 per cent fall in fourth quarter earnings.
This is despite selling over a million Lumia phones, and Nokia are still hoping to gain on their current position, with CEO Stephen Elop stating in the press release of the results that “In the war of ecosystems, clearly there are some strong contenders already on the field. And with Lumia, we have demonstrated that we belong on the field.”
It has also emerged that Microsoft paid Nokia $250 million to use Windows Phone on its handsets, indicating just how serious they are about making this competitor to Android and iPhone work.
Nintendo and NEC
Nintendo, the brand that created the much loved games consoles of the 80s and 90s as well as popular hand-held devices such as the DS, reported its first annual loss of its history today, estimated at $575 million. This indicates a major shift in the gaming landscape, with many people now playing games on their smartphones. Nintendo need to connect to what consumers want to become a brand that people will actually spend money on, rather than becoming a nostalgic reminder of their childhood.
In more bad news for Japanese businesses, the 113 year old electronics firm NEC, today announced it is to cut 10,000 jobs following a loss of $1.25 billion, with BBC reporting that NEC attributes the loss in its mobile phone business to its rivals increasing their share in the market.
The losses at Nintendo, NEC and Nokia illustrate just how tough it can be to maintain a strong foothold in the tech industry – with new startups coming up all the time – as well as the difficulty of keeping up with the competition (namely Apple) and not only give consumers what they want, but forsee what they’ll want in the future.
However it’s not all plain sailing for Apple, who have been scrutinized by the media over the working conditions of those who make their products. However, despite the issues faced by these companies, the battle between the big tech brands will no doubt be a fascinating fight to watch in 2012.
