The Irish arm of Nokia went into the red in 2011 as revenues more than halved in the face of increased competition from smartphones operated by Apple and Samsung.
According to accounts just filed by Nokia Ireland Ltd to the Companies Office, the firm’s revenues plummeted by over €109 million or 55 per cent from €199.8 million to €90.1 million in the 12 months to the end of December 2011.
The dramatic drop in sales in Nokia’s mobile phone handsets has contributed to the Finnish-owned firm recording a €1.65 million pre-tax loss in 2011 that followed a pre-tax profit of €6.3 million in 2010.
The directors’ report says “the level of business for the financial year was seriously impacted by the competitive environment and the challenges faced by the Irish economy”.
The directors add: “In 2011 the company’s net sales and profitability were negatively impacted by the increasing momentum of competing smartphone platforms relative to Nokia Symbian smartphones as the group embarked on a platform transition to Windows Phone, as well as our pricing actions due to the competitive environment in both the smartphone and mobile phone markets.”
The document also shows that the firm saw an overhaul of its board, with the firm’s three directors, Killiney-based business executive Roy McCarthy, Alan O’Hara from Stepaside, Dublin, and UK-based Edward Morris, stepping down.
