Nokia’s full year financial results for 2009 showed little encouragement for the manufacturer, as mobile devices and services net sales plummeted by 21 per cent to €27.8 billion compared with €35 billion in 2008.
Gross profit in 2009 was also down at €9.3 billion compared with €12.8 billion, while it also reduced research and development spend during the period by five per cent. Selling and marketing declined by 17 per cent to €2.3 billion, also during the period.
Nokia shipped 107 million handsets in Europe, 6.9 per cent less than 2008, while its global sales also dropped by 7.8 per cent to 431 million. However, Nokia claimed its market share grew in Germany, UK, Russia and Spain. Emerging markets accounted for 63 per cent of sales.
In 2009, the industry shipped a total of 1.14 billion devices compared with 1.21 billion in 2008. Last year, the global device market was impacted by the global economic problems, weaker consumer and corporate spending, constrained credit availability and currency market volatility.
Nokia’s infrastructure business, Nokia Siemens Networks, accounted for 52 per cent of the Groups total net sales which was €34.191 billion. Nokia Siemens Networks generated the greatest amount of net sales from China, with the UK being its third biggest country in net sales terms.