ET Desk
Nokia's chief executive came under increasing pressure Thursday, as the world's biggest mobile phone maker saw its earnings slump in the face of competition from Apple and RIM in the key smartphone segment.
CEO Olli-Pekka Kallasvuo, who according to the Wall Street Journal could soon lose his job because of his inability to hike Nokia's performance in the competitive smartphone market, called for an end to rumours about his departure.
"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," Kallasvuo told CNBC television Thursday.
"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," he said.
From April to June, Nokia posted a net profit of 227 million euros (290 million dollars) in the second quarter, down 40 per cent from 380 million euros for the same quarter last year.
The Finnish company's net sales were up 1.0 per cent on a year-to-year basis to 10.0 billion euros, and sales in its key devices and services unit were up 3.0 per cent on a year-to-year basis to 6.8 billion, but down 2.0 year-to-year in constant currency.
Nokia said it had sold 111.1 million devices in the second quarter, up 8.0 per cent on a year-to-year basis.
But its market share stood at 33 per cent, down 35 per cent from last year and equal to the first quarter, while the average selling price of its devices was down to 61 euros from 64 euros a year earlier, a drop attributed to a higher proportion of lower-priced phones sold and price pressure on certain smartphones.
Nokia continues to lead the cellphone market, but is under pressure from the likes of Apple's iPhone and RIM's BlackBerry in the high-end segment, with competitor phones seen as faster and easier to use then Nokia's, which are based on outdated Symbian technology.