Feeds

Nokia sees sales, shipments and profits slide

Looks for solutions pick-me-up

The essential guide to IT transformation

The recession bit Nokia with a vengeance in the second quarter, with the company seeing most of its major metrics take a turn for the worst.

Nokia's profit before tax for the second quarter of 2009 fell by some 74 per cent, with the company only bringing in €380m compared to the €1.4bn it managed in the same period last year.

Shipments were down 15 per cent compared to 2008, though they still topped 103 million handsets. But the average price dropped to €62 as the company was forced to cut prices, not to mention selling as lot of cheaper handsets.

So, inevitably, net sales were down 24.6 per cent on last year to €9.9bn.

Overall Nokia reckons it managed to increase its market share, by a single percentage point to 38 per cent since the last quarter, but down from the 40 per cent it managed last year.

Things don't look much better for the rest of the year either - with the company predicting that volumes and market share will remain pretty static, which seems at odds with the company's prediction that the industry will continue to contract by a total of about 10 per cent during 2009.

In smartphones Nokia reckons it still has 41 per cent of the market, though emphasising how Nokia no longer views itself as a phone manufacturer CEO Olli-Pekka Kallasvuo said: "Consumers will increasingly expect devices and services designed as integrated solutions. To capture this opportunity we are accelerating our strategic transformation into a solutions company."

Nokia has wanted to be in services for along time, and is now betting that Ovi will provide its own door to a new revenue stream. But the company is going to have to make more money selling handsets if it's going to continue to fund its solutions-company aspirations. ®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.