Nokia global net sales down 20pc

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Nokia has reported that its net global sales are down 20 per cent year, but it has managed to maintain global market share of around 38 per cent.

According to its latest financial results, Nokia took in net sales of €9.8 billion (£8.97 billion), down 20 per cent year on year, from €12.24 billion in the same quarter last year.

Net sales from Devices and Services were €6.9 billion, down 20 per cent year on year.

The manufacturer shipped 108.5 million devices globally, down eight per cent year on year. The decline is in line with the industry average, as a total of 288 million units were shipped across the industry globally, which is down seven per cent year on year.

The company reported an operating loss of €426 million, primarily due to a write down in the value of infrastructure subsidiary Nokia Siemens Network. Nokia’s device and service division’s profits were €785 million, up three per cent from the previous quarter. Smartphone sales were down slightly at 16.4 million, compared with 15.5 million units in Q3 2008 and 16.9 million units in Q2 2009.

Nokia has estimated its mobile device market share as 38 per cent, which remains at the same level as in Q2 this year and Q2 last year.

Nokia has measured its average selling price at €62, at the same level as in Q2 but down from €72 in Q3 2008. The company said the year on year decline was primarily due to a higher proportion of sales of lower priced products as well as general price pressure.

Nokia chief executive Olli-Pekka Kallasvuo (pictured) put some of the decline down to component shortages. He said: “The demand for mobile devices improved in many markets during Q3. With the average selling price of our devices holding firm quarter-on-quarter, our higher device volumes translated into increased net sales in our Devices and Services business. Our volumes and net sales were, however, somewhat constrained by component shortages we encountered across the portfolio. I also want to highlight the good operating expense management that helped the segment deliver solid earnings. 

“The challenging competitive factors and market conditions in the infrastructure and related services business necessitated non-cash impairment charges at Nokia Siemens Networks. We continue to support Nokia Siemens Networks actions to improve its performance.”

The company has forecasted Q4 industry mobile device volumes to increase slightly, but for its Q4 market share to remain at around the same level.

A company statement said: “Nokia expects industry mobile device volumes to be approximately 1.12 billion units in 2009, down approximately seven per cent from approximately 1.21 billion units Nokia estimated for 2008. “This is an update to Nokia’s earlier estimate of industry mobile device volumes declining approximately 10 per cent in 2009 from 2008 levels.”

 

 

 

 

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