Nokia report 90 percent less profit in Q1, but sell 5800 like hotdogs

Nokia reported their financial status at the end of Q1 this year and it does not sound good. The biggest phone manufacturer at this stage has 90% profit drop, 27% sales drop and the Finns even started to cut some slack positions. Sure sounds like an economic downturn, doesn't it?

Yep, 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.

But, hey it's not as bad as it sounds. The company shares rose with 8 percent in the last months.

Nokia also claims that in the last quarter they sold 2.8 million units of the popular touch-based 5800 XpressMusic and that they would have sold many more had not they been a bit underpowered. As of now they will be shipping a million 5800 units every month.

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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