Revenues of Finnish phone maker Nokia continued its downward journey for a second consecutive year in the Indian market as Samsung and others ate into its sales in 2012. For the year, Nokia reported a 23% decline in the country, its second largest market after China, according to a new report.
Nokia reported a decline in annual revenue from India to Euro 2,227 million in 2012 from last year Euro 2,923 million at the end of 2011, reports PTI. That is a massive 23% dip especially after coming off from the previous year of losses.
Nokia attributed the losses to increasing competition and currency fluctuation. “The year 2012 was one of transition for Nokia. While the first half of the year was challenging, our execution against a focused business strategy started to translate into financial results in the final three months of the year,” a Nokia spokesperson told PTI.
The losses were across all business divisions of Nokia including devices, infrastructure (Nokia Siemens Networks) and Here (formerly Location and Commerce).
“The majority of our non-euro based sales are denominated in the US dollar, but our strong presence in emerging markets like China, India, Brazil and Russia also gives rise to substantial foreign exchange exposure. The Indian rupee depreciated by 2.3 percent against the euro,” a recent report from Nokia had said.
In the first half of 2012, Nokia was still the number one handset maker in the country with 22.2% of unit shipments. But Nokia has seen a constant decline in the market share first to local players and now to global majors like Apple and Samsung which have taken over the high-end smartphone market completely.
Nokia has seen its troubles grow in India. In January this year, tax authorities in India raided the companies premises for a suspected tax evasion to the tune of more than half a billion dollars.
The phone maker, which was considered as the most trusted brand in India for a few years running, also lost the title to FMCG major Colgate last year. The company is making various strides to improve its sales in India. Just last week, it announced a partnership with New India Assurance to offer handset insurance in India.
The company has also launched the Asha range of phones, which they hope appeals to low-to-mid budget segment. The company is also heavily marketing its Lumia phone range which is powered by Windows Phone. After launching the Lumia 920 and 820, the Lumia 620 went on pre-order last week and is expected to hit stores this week.