Nokia has announced that its second quarter 2006 net sales increased 22% to EUR9.8 (US$12.3) billion, compared with EUR8.1 (US$10.1) billion in the second quarter 2005. At constant currency, group net sales would have increased 17%. Nokia's second quarter 2006 operating profit grew 50% to EUR1.5 (US$1.9) billion (including the positive impact of the EUR276 (US$345) million special item).
In the second quarter 2006, the company shipped 78.4 million units, representing 29% year-on-year growth and a 4% sequential increase. The overall industry volume for the same period reached an estimated 230 million units, representing 26% year-on-year growth and a 7% sequential increase. Converged device (smartphone) industry volumes increased to an estimated 18.3 million units, compared with 12 million units in Q2 2005. Nokia's own converged device volume rose to 9.0 million units, compared with 6.7 million units in Q2 2005. The converged device segment continued to be the fastest growing area in mobile device volumes globally.
Mobile Device Volumes By Region | |||||
| (million units) | Q2 2006 | Q2 2005 | YoY Change (%) | Q1 2006 | QoQ Change(%) |
| Europe | 21.1 | 18.8 | 12.2 | 20.4 | 3.4 |
| Middle East & Africa | 12.5 | 9.0 | 38.9 | 11.9 | 5.0 |
| China | 11.7 | 7.4 | 58.1 | 10.9 | 7.3 |
| Asia-Pacific | 18.8 | 10.5 | 79.0 | 16.4 | 14.6 |
| North America | 5.2 | 6.0 | -13.3 | 8.4 | -38.1 |
| Latin America | 9.1 | 9.1 | 0.0 | 7.1 | 28.2 |
| Total | 78.4 | 60.8 | 28.9 | 75.1 | 4.4 |
Based on their preliminary market estimate, Nokia's market share for the second quarter 2006 was 34%, compared with 33% in the second quarter 2005 and 35% in the first quarter 2006. Nokia's year-on-year market share increase was driven primarily by strong gains in China and Asia-Pacific. Sequential market share gains in Europe, Asia-Pacific and China were more than offset by sequential market share declines in North America, Latin America and Middle East & Africa.
The decline in Nokia's volumes in North America was impacted by a significant order cancellation at one of their customers in the pre-pay market.
While Nokia experienced sequential volume growth in Latin America, it was slower than the market growth. Nokia's significant sequential market share growth in Europe was driven by very strong gains in its European WCDMA market share."
Posted to the site on 21st July 2006
Posted to: www.cellular-news.com/story/18404.php