Nokia reports loss, but issues positive Q4 outlook

Nokia reports loss, but issues positive Q4 outlook

Nokia has reported a loss of £391m for Q3 2009, compared with profits of £1.3bn n a year earlier, but signalled that the handset market would improve in the fourth quarter.

The manufacturer reported sales down 20% year on year to £9bn, blaming the dip on component shortages across its portfolio.

Nokia shipped 108.5 million devices during the period, down 8% year on year but up 5% on the previous quarter.

Average selling price per unit was £57, down from £66 a year earlier, due to a ‘higher proportion of sales of lower priced products, as well as general price pressure’, the manufacturer said.

Meanwhile, it maintained a 38% market share, and said it expected mobile device volumes to be up sequentially in the fourth quarter of 2009.

Nokia said it expects total industry device volumes to have shrunk around 7% in 2009 – an ‘update’ on the prediction it made earlier this year that the handset market would decline by 10% during 2009.

Nokia CEO Olli-Pekka Kallasvuo said:‘The demand for mobile devices improved in many markets during Q3. With the average selling price of our devices holding firm quarter-on-quarter, our higher device volumes translated into increased net sales in our Devices & Services business.

‘Our volumes and net sales were, however, somewhat constrained by component shortages we encountered across the portfolio. I also want to highlight the good operating expense management that helped the segment deliver solid earnings.’

 

Written by Mobile Today
Mobile Today

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