Nokia has reported second quarter net sales of EUR 13.2 billion (US$21 billion), up 4% year on year and up 4% sequentially. Net income fell to EUR1.1 billion (US$1.75 billion) in the quarter - down on the EUR2.83 billion (US4.5 billion) a year ago, and down on the EUR1.22 billion (US$1.94 billion) in Q1. The drop was caused by costs for its Bochum factory in Germany and one off gains a year earlier
Devices & Services net sales of EUR 9.1 billion, down 1% year on year and down 2% sequentially. Nokia Siemens Networks net sales of EUR 4.1 billion, up 18% year on year and up 20% sequentially.
Nokia shipped 122 million mobile phones in the quarter - up 21% year on year and up 6% sequentially. The company estimates that the overall industry shipped 303 million mobile phones in the quarter, so Nokia now has a 40% market share of the mobile phones.
Olli-Pekka Kallasvuo, Nokia CEO commented: "Nokia delivered increased device market share and strong underlying profitability in the quarter. Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell in our device business. In the second quarter we saw good momentum in the early stages of our services and software business, and we believe that the next wave of growth will be driven by devices linked with services. On the infrastructure side, Nokia Siemens Networks delivered a second quarter with good net sales growth and improved profitability."
The company expects industry mobile device volumes in the third quarter 2008 to be up sequentially and that it expects to maintain its market share at the 40 percent mark.
Nokia now expects industry mobile device volumes in 2008 to grow 10% or more from the approximately 1.14 billion units Nokia estimated for 2007. This is an update to Nokia's earlier estimation that industry mobile device volumes would grow approximately 10% in 2008.
Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.
The following chart sets out mobile device volumes for the periods indicated, as well as the year on year and sequential growth rates, by geographic area.
| (million units) | Q2/2008 | Q2/2007 | YoY Change | Q1/2008 | QoQ Change |
|---|---|---|---|---|---|
| Europe | 27.1 | 27.1 | 0.0% | 25.7 | 5.4% |
| Middle East & Africa | 21.1 | 17.1 | 23.4% | 20.2 | 4.5% |
| Greater China | 17.6 | 15.9 | 10.7% | 21.0 | -16.2% |
| Asia-Pacific | 36.4 | 25.6 | 42.2% | 34.1 | 6.7% |
| North America | 4.5 | 4.1 | 9.8% | 2.6 | 73.1% |
| Latin America | 15.3 | 11.0 | 39.1% | 11.9 | 28.6% |
| Total | 122.0 | 100.8 | 21.0% | 115.5 | 5.6% |
Posted to the site on 17th July 2008
Posted to: www.cellular-news.com/story/32461.php