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Nokia profits down 40 per cent

Nokia profits down 40 per cent

Nokia's position in the mobile market is becoming even less tenable than ever after it published its performance figures for the second quarter of the year, in which it showed a 40 per fall in profits.

This figure is based on a comparison with the same period last year and its underlying profits were also 27 per cent lower than previously experienced.

Its net sales figures rose by one per cent, totalling a little over £8.4 billion, but it was forced to squeeze the retail prices of its most expensive mobiles in order to remain competitive, which meant that a hit to its profitability was inevitable.

The inferiority of Nokia's recent efforts when compared with Apple's iPhone range and the Google Android platform is widely publicised and times become tough enough for rumours about Nokia's top job to circulate.

This may leave current Chief Executive Officer Olli-Pekka Kallasvuo out of work, but he has been keen to reassert his position within the firm.

He told US broadcaster CNBC: "There has been a lot of speculation on my position, on myself, during the last couple of weeks and that is not good for Nokia and must be brought to an end one way or another.

"At the same time, I'm not in a position here and now to really shed any more light on the topic so I guess this is a no comment. I really concentrate now on the task at hand."

Mr Kallasvuo went on to point out that Nokia is still the world's largest mobile manufacturer, with a strong foothold in the emerging markets, although it is currently struggling to hold onto its position and at the moment any kind of growth looks improbable.

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