Finnish mobile phone maker Nokia announced today its financial results for the fourth quarter of the last year, and posted net sales of EUR 12.0 billion, marking a decrease of 5 percent when compared to the same quarter a year ago and an increase of 22 percent when compared to the previous quarter. At the same time, the company also revealed that its mobile device volumes topped 126.9 million units, going up by 12 percent when compared to the fourth quarter of 2008, and up by 17 percent from Q3 2009.
According to Nokia
, it accounted for around 39 percent of the market in Q4 2009, going up from 37 percent market share it registered in Q4 2008 and also up from 38 percent market share in the third quarter of the last year. For the entire year 2009, the company says that its market share was of around 38 percent, down from 39 percent in 2008. At the same time, the company estimates that industry mobile device volume was of 329 million units, up 8 percent from 2008 and up 14 percent sequentially.
Other highlights from the company
's announcement include:
- Nokia grew its converged device market share to an estimated 40%, from an estimated 35% in Q3 2009.
- Nokia improved the ASP of its mobile devices to EUR 63, from EUR 62 in Q3 2009.
- Devices & Services increased its gross margin to 34.3%, from 30.9% in Q3 2009.
- NAVTEQ non-IFRS net sales of EUR 225 million, up 9% year on year and up 36% sequentially, and non-IFRS operating margin of 24.0%, down from 25.9% in Q3 2009.
- Nokia Siemens Networks net sales of EUR 3.6 billion, down 16% year on year and up 31% sequentially (down 17% and up 29% at constant currency).
- Nokia operating cash flow of EUR 1.5 billion, more than double the operating cash flow for Q3 2009.
- Total cash and other liquid assets of EUR 8.9 billion at the end of Q4 2009.
- Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. If Nokia's estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 1 Euro cent higher.
As for the just started year 2010, Nokia
says that it expects to register Devices & Services net sales of between EUR 6.5 billion and EUR 7.0 billion in Q1 2010, that its mobile device volume market share will remain flat in 2010, but it aims at increasing its mobile device value market share slightly when compared to the last year. For the entire mobile industry, the company expects device volumes to increase with around 10 percent this year when compared to 2009.
“We grew our market share in smartphones
in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our Devices & Services unit, both quarter-on-quarter and year-on-year. Our solid results also owe a good deal to world class supply chain management and impressive sales execution,” Olli-Pekka Kallasvuo, Nokia CEO, commented.
Additional details on the company's financial results can be found on its website