Sales and profit slump at Nokia

Nokia: sales down, market share up

Nokia’s sales slumped by 25 per cent year on year during the mobile phone maker’s second financial quarter, while operating profit fell 71 per cent – but the company claims it still grew market share.

Revenue for the period was €9.9bn (£8.5bn), with operating profit of €427m (£367m), as mobile phone sales fell worldwide.

Sales of devices and associated services dropped 27.5 per cent to €6.6bn (£5.7bn).

But revenue increased compared with the previous three months – up 6.9 per cent – while operating profit rebounded significantly, up 676 per cent.

Nokia chief executive Olli-Pekka Kallasvuo said the sequential growth helped increase the firm’s mobile device market share to 38 per cent and smartphone market share to 41 per cent.

“As a result of strong operational execution, underlying operating margins improved sequentially in all segments. Competition remains intense, but demand in the overall mobile device market appears to be bottoming out,” he 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.”

Nokia said it expects mobile device sales in the third quarter of 2009 to stay flat or at best show a small increase.