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Nokia 'to announce profits boost'

Nokia 'to announce profits boost'

Nokia is expected to announce that sales of its mobiles have grown in the first quarter of 2010, suggesting that the firm is finally finding its feet again after suffering from tough competition and the recession.

Business experts predict that Nokia has seen a 50 per cent increase in its operating profits over the period, thanks largely to the uptake of smartphones at the higher end of the market.

"The market is moving increasingly towards smartphones and devices like mobile computers," according to industry analyst Hannu Rauhala.

Gartner predicts that the smartphone market is set to grow by 46 per cent in 2010 and has been able to perform well even in times of economic hardship.

Nokia is still lacking at the very top of the mainstream smartphone spectrum, according to analysts, as the iPhone from Apple is still dominant and unchallenged.

"Today, Apple owns the consumer and RIM is trusted by corporations. Nokia has a great brand but its value added is indistinguishable," according to Vaxa Inc researcher Steve Nathasingh.

Nokia is currently the king of the entry-level smartphone, as forecasts suggest that its devices are used by 70 per cent of consumers at this section of the market.

13 per cent growth is predicted for the global mobile market as a whole in 2010, which is a significant rise after consumer spending was limited by the recession in 2009.

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