Nokia, one of the biggest IT companies in the world, announced a remarkable jump in profit, contrary to analysts’ expectations.
The operating profit stood at $674 million, increased by 73 percent as compared to the same period’s profit a year ago.
Earlier, analysts had expected that the company would only be able to make the profit of $523 million. The announcement came in on Thursday and is being widely believed an accomplishment on the Nokia-Apple patent detail.
Amidst celebrations and jubilations, however, the network company warned that the business is likely to slow down by the end of this year.
For now, the news to be happy about for the company is that its shares rose by 5.5 percent. This surge was a result of the company’s more-than-expected operating profit for the second-quarter.
The CEO of Nokia, Rajeev Suri, discussed the company’s better than expected growth in a conference call and said that the company is actually penetrating its way into the market. The market signs appear to be quite positive for the company, he added.
Better Times for Nokia
Over the past few years, Nokia had suffered a lot and faced drawbacks and losses. The operating profit of the company was also experiencing a downward trend.
The company, whose phones were once used to be a hit, suddenly had to face a weak demand and cope up with the loses that came with the decline in demand. The rise of smartphones and Nokia’s inability to accept changes on time led the company in an abysmal state.
But, it steered itself out of the quagmire of low profit and even lower revenue and came out with a new range of cell phones – one that became an instant hit amongst mobile users.
The return of the Millennials favorite, Nokia 3310, is a better case and style, also brought the company into limelight again. The 2016 acquisition of rival Alcatel-Lucent further strengthened the company’s position in the market.
While Nokia’s earnings show that the market is treading steadily, its Swedish rival Ericsson has a completely different story to tell. While announcing its quarterly report, Ericsson created a wave of shock amongst investors when it unveiled the bloated figure of $1.7 billion booked in restructuring costs, provisions, and write downs.
The already slow market didn’t have glad tidings for Ericsson. However, another candidate in the race, Huawei, a Chinese phone manufacturing brand, announced a 15 percent increase in its half-year sales. But the company didn’t present a breakdown of its profit. Both the companies, however, are working to strengthen their overall profit.