Feeds

Nokia blames prices for profit fall

Erstwhile handset supremo still suffering

  • alert
  • submit to reddit

Top three mobile application threats

Nokia says falling handset prices are responsible for falling profits at the Finnish firm.

For the quarter ended 30 September 2004 the firm sold 51.4m handsets. Net sales grew one per cent to €6, 939m and operating profit fell 20 per cent to €928m. Operating margin was 13.4 per cent, down from 16.8 per cent for the same period last year.

Net sales of mobile phones were €4,429m - 13 per cent lower than in 2003. Enterprise Solutions did better, increasing sales by 52 per cent to €172m.

Jorma Ollila, chairman and chief executive of Nokia, said: "The replacement market in Europe and North America, as well as markets with relatively low mobile penetration rates such as Latin America, continued to be the major contributors to this volume growth." He said shortages of components had hit overall volumes.

Ollila is optimistic about the upcoming quarter: "We expect continued strong growth in global mobile device market volumes in the fourth quarter, even as compared to the remarkable final quarter in 2003, and now estimate that the 2004 total market volume will be approximately 630 million units."

Nokia estimates it has 33 per cent of the "mobile device market" worldwide. Market share grew in western Europe, but fell in the US and Latin America. It believes 158m mobile devices were shipped in the quarter.

At the end of the period Nokia employed 54,783 people against 51,359 people on 31 December 2003. The firm has been criticised for being slow to offer camera phones and clamshell designs.

Details at the Nokia website here. ®

Related stories

Camera phones boost Sony Ericson profits
Motorola launches six clamshells
Orange's big push into push-to-talk

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
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
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
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
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
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.