Nokia reports 66% dive in profits to £326m for second quarter

Nokia reports 66% dive in profits to £326m for second quarter

Nokia has reported 66% profits dive to £326m as it reiterated its prediction for a 10% decline in the mobile market. It reported its results for the quarter ended 30 June today (16 June).

It also reported 25% decline in sales in the second quarter to £8.5bn, compared with £11.2m during the same period a year earlier. The manufacturer shipped 103.2 million units during the period.

However, Nokia managed to grow its market share sequentially to 38%, compared with 37% in Q1. It also shipped 41 million smartphones – up from 37.1 million in Q1 2008 and 36 million on the first quarter of 2009.

Market share for smartphones increased from 39% to 41%, which Nokia attributed to strong sales of its NSeries and ESeries devices. It also shipped 3.7 million 5800 XpressMusic handsets.

Nokia CEO, Olli-Pekka Kallasvuo, said:‘Nokia put in a solid performance in what was another tough quarter. Competition remains intense, but demand in the overall mobile device market appears to be bottoming out. As before, we are continuing to tightly manage our operating expenses.

The manufacturer now plans to ‘accelerate’ its strategic transformation into a ‘solutions company’, offering more than mobile devices, with services such as its Ovi Store.

Kallasvuo said: ‘We are balancing short-term priorities with our longer-term growth ambitions as elements of the mobile handset, PC, internet and media industries converge to form a new industry. Consumers will increasingly expect devices and services designed as integrated solutions.’

Written by Mobile Today
Mobile Today


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