Feeds

US consumers pump up Nokia profits

Bullish forecast for '06

Secure remote control for conventional and virtual desktops

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

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.