Feeds

Cheaper phones crimp Nokia profits

North America remains indifferent to company's charms

Top 5 reasons to deploy VMware with Tegile

Profits were down at global mobile phone giant Nokia yesterday although quarterly sales remained strong.

First quarter financial results for the Finnish giant show net profits stood at €979m, down seven per cent on close to €1.05bn last year.

This is despite a four per cent increase in sales compared to last year with overall turnover reaching just below €9.9bn compared to €9.5bn last year. Nokia said increasing sales of low-end models in emerging markets deflated its unit average selling price (ASP) with the Middle East & Africa, China and Asia-Pacific regions all recording strong year-on-year increases of between 31 and 44 per cent.

The average selling price of Nokia's handsets was €89 - the same as the final quarter of 2006, but down a noticeable 14 per cent from €103 one year ago. Nokia said the decline was slightly offset by improving sales of its high-spec multimedia devices, but still beat forecasts by €1.

In total, Nokia sold 253 million mobile devices during the three months ending 31 March, an 18 per cent increase year-on-year. Nokia is expecting a slight increase in the current quarter, and the company expects the handset market to keep on growing by an estimated 10 percent throughout 2007.

Even so, Nokia executicves will be keeping a close eye on its market share in North America, with handset volumes falling more than 40 per cent to under five million units.

Diluted earnings per share (EPS) stood at €0.25 for the quarter - the same as last year. On Thursday evening Nokia shares rose €0.61 to €18.16 in Helsinki.

Nokia chief executive Olli-Pekka Kallasvuo was pleased with the results, particularly with operating margins at 14.4 per cent compared to 12.9 per cent last year.

"We also saw good year-on-year device volume growth that led to an increase in our market share, further solidifying our number one position in the industry," he said.

"Our Multimedia business group achieved record net sales and operating margin in a seasonally challenging environment. Multimedia continues to lead in the convergence space, with close to eight million Nokia Nseries devices shipped during the quarter, including the ground-breaking Nokia N95 multimedia computer.

"Our Enterprise Solutions business group showed improved results, bolstered by sales of the new Nokia E65, and we are targeting breakeven for Enterprise Solutions in the second quarter 2007.

"Mobile phones mid-range portfolio was strengthened by the Nokia 6300, which began initial shipments in the first quarter."

Kallasvuo also expects the new Nokia Siemens Networks joint venture, which began joint operations on 1 April, to "assume a leading position in the communications infrastructure market".

Analysts are predicting a rake of job cuts in the new joint venture to achieve operational efficiency.

In total, the Espoo, Finland-based company employed just over 68,000 people worldwide on 31 March.

Copyright © 2007, 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.