Feeds

Phone sales drive Nokia Q4 profitability

But phone growth will be slower in 2004

  • alert
  • submit to reddit

SANS - Survey on application security programs

Nokia reported its fourth quarter financial results today, with minor dips in quarterly and annual sales but strong performance from its mobile phone division.

Sales for the three months to 31 December 2003 totalled €8.79 billion, down a single percentage point on the year-ago quarter. However, sales of the product for which the company is best known, mobile phones, grew four per cent to €7.01 billion on the back of a 20 per cent year-on-year rise in shipments.

During the quarter, Nokia shipped some 55.3 million handsets - enough to give it 38 per cent of the global market, the company claimed. Growth was driven by increasing demand for phones with cameras and colour screens - the latter accounted for over half of the shipments. The handset division's operating margin reached 24.4 per cent, driving the company's overall operating profit of €1.67 billion (75 cents a share), up 14 per cent on the year-ago quarter.

Nokia Networks contributed €41 million to that figure; Mobile Phones generated €1.71 billion. Losses at the company's venture capital wing and overall group expenses pulled down to the reported €1.67 billion.

For the year as a whole, sales dropped two per cent to €29.46 billion, €23.62 billion of which came from the Mobile Phone division, which shipped 179.3 million handsets during 2003, up 18 per cent by volume, two per cent by value. The group reported 2003 profits of €5.01 billion (75 cents a share). Nokia Mobile Phones was the only profitable division of the company.

Looking ahead, Nokia said it expects sales to grow 3-7 per cent year-on-year during Q1 2004. Diluted EPS is anticipated to come in around 17-19 cents a share. Throughout the year, mobile phone shipments will increase by around ten per cent, it reckons. Network infrastructure sales are expected to be much the same as 2003, but we should see a large number of 3G launches this year, driving with growing demand for picture messaging that increase in handset shipments. ®

Related Products
Buy your next Nokia from The Reg mobile store

3 Big data security analytics techniques

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.