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Nokia lost its leading position in the global phone market.

15 April, 2012 (22:12) | Finnish Businesses, News | By: Snezhana Snezhko

Nokia looses leading position The estimates of communication analysts have realized and the sales of Korean Samsung in the first quarter of this year exceeded those of Nokia for the first time. Nokia kept its leading positions during the last 14 years.

On April 13th, 2012 Nokia declared the sales of 83 millions of mobile phones during January until March of this year. These numbers are significantly lower of those that were initially planned by the company (at least 95 millions of phones). During the same period, Samsung managed to sell 86 millions of phones.

In addition, Jarmo Leppiniemi, professor at University of Helsinki and member of the board of the  stock fund, says that the “golden age” of Nokia is well gone. Nokia raised on the boom of mobile industry advancement in the world. There will be no more time like this.

To recall, Nokia has recently agreed with the labor union about the dismissal of 1,000 employees at the plant in Salo, the largest enterprise company in Europe. The number of job positions will be gradually reduced throughout 2012. The remaining staff members will focus on developing mobile phones with the requirements of European telecom operators.

In total the company plans to cut 4,000 positions in Hungary, Mexico and Finland, which is 3% of the entire labor state. The changes will be taken accordingly to the restructuring business strategy that should reduce extra costs and expenses for Nokia. The assembly of many devices will be transferred from the European factories to Asia, where most of the component suppliers are located.

Source – Yle News 

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