Feeds

US consumers pump up Nokia profits

Bullish forecast for '06

Top 5 reasons to deploy VMware with Tegile

Nokia, the world’s biggest mobile phone maker, announced stronger than expected results for Q1 yesterday.

Profits plumped up 21 per cent based largely on increasing sales in the US market. Net income for the first quarter soared to €1bn compared to €863m in 2005. Revenue at the Espoo, Finland-based company jumped 29 per cent to €9.5bn, up from €7.4 bn in the year-ago quarter.

Emerging markets in the Middle East and Africa, the Asia-Pacific region, and China also performed well with quarter-on-quarter per centage growth all in the teens. Of the newer markets only Latin America performed poorly for Nokia with volumes down by just under a quarter.

Earnings per share jumped nearly a third to €0.25, outperforming the Wall Street consensus forecast of €0.22.

Nokia president Olli-Pekka Kallasvuo said 2006 will be a year of good growth for the global mobile market. He expects Nokia's market volume to increase by at least 15 per cent.

"This year we anticipate approximately 70 per cent of industry volume growth to come from the emerging markets," he said, adding that lower priced entry-level products were "critical" for Nokia's future success.

Nokia phones are getting more expensive. The average selling price of a handset before Christmas was €99, rising slightly to €103 for the current quarter.

The firm's network business also seems healthy, with new contracts announced this quarter in Kuwait, China, Ecuador, Ukraine, Finland, Spain, and a United Arab Emirates deal alone worth €190m.

Nokia chief executive Jorma Ollila reportedly said he believed the recent merger with Lucent and Alcatel will not affect Nokia's market share.

© ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.