Nokia market share up, profits down

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Nokia said its global market share grew to 40 per cent in Q2, from 38 per cent during the same period last year and 39 per cent in Q1.

Even so, its net device sales were €9.09 billion, down one per cent on the same period last year and two per cent on Q1, indicating a marginal slowdown in the global market. Group sales, including its Nokia Siemens infrastructure unit, were €13.15 billion, up four per cent.

Group net profits of €1.1 billion were down 61 per cent on the same period last year, and 10 per cent quarter on quarter.

Nokia expects global sales to increase during this quarter, and its share to remain constant. It also increased its total market growth forecast for the year to more than 10 per cent. Global handset sales last year were 1.14 billion units.

It said the network infrastructure market will remain flat in 2008, as will Nokia Siemens Networks’ share of the market. Fixed and mobile infrastructure equipment sales for Q2 were up 18 per cent on the same period last year, however.

Net services and software sales were up 42 per cent.

Nokia expects its purchase of mapping company NAVTEQ to increase earnings per share only after 2010.

Nokia chief executive Olli-Pekka Kallasvua said: "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."

 

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