Nokia market share dips below 30% in Q1
Revenues up, pre-tax profit down
Nokia's global mobile phone market share significantly fell below 30 per cent for the first time in 10 years during the company's first quarter, when it announced a new pact with Microsoft.
The company, which today signed a definitive agreement with MS to build several Nokia Windows phones together, posted better than expected Q1 operating profit on Thursday.
Revenues at the Finnish phone maker were up nine per cent to €10.39bn for the quarter ended 31 March 2011. That compared with sales of €9.52bn in the same period a year earlier.
However, pre-tax profit dropped from €411m to $403m year-on-year.
At the same time, Nokia's market share in the mobile phone biz declined from 33 per cent in its 2010 Q1 to 29 per cent in its most recent quarter.
But the company's operating profit cheered the markets, which had expected a decrease of some 40 per cent during the quarter. Instead it fell by 14 per cent to €344m, compared with €499m for the same period a year earlier.
Nokia boss Stephen Elop confessed in the company's results statement that life was about to get even tougher for the phone vendor.
"Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year," he said.
"We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance.”
Nokia shares are currently up 3.25 per cent to $8.59 in pre-market trading on Wall Street. ®