14 DAY TRIAL // Finnish mobile phone maker Nokia announced today its financial results for the first quarter of the ongoing year, and posted net sales of EUR 9.5 billion, marking an increase of 3 percent when compared to the same time frame a year ago, though down 21 percent from the previous quarter. According to the company, its Devices & Services net sales were of EUR 6.7 billion, increasing 8 percent year-on-year and decreasing 19 percent on a quarterly basis.
Nokia's total mobile device volumes for the quarter were of 107.8 million units, growing 16 percent when compared to the first quarter of 2009, and going down 15 percent sequentially. The company's converged mobile device (smartphone and mobile computer) volumes went up 57 percent on a yearly basis, reaching 21.5 million units, and increased 3 percent from the previous quarter. The average selling price (ASP) of Nokia mobile devices (including services revenue) was of EUR 62, down from EUR 64 in Q4 2009. According to Nokia, it registered services net sales of EUR 148 million for the first quarter of the year, down 12 on quarter.
Other highlights from the handset vendor's announcement include: - Devices & Services gross margin of 32.4%, down from 33.8% in Q1 2009 and 34.3% in Q4 2009. - Devices & Services non-IFRS operating margin of 12.1%, up from 10.4% in Q1 2009 and down from 15.4% in Q4 2009. - NAVTEQ non-IFRS net sales of EUR 189 million, up 41% year-on-year and down 16% sequentially (up 46% and down 18% at constant currency). - Nokia Siemens Networks net sales of EUR 2.7 billion, down 9% year-on-year and down 25% sequentially (down 12% and 27% at constant currency). - Nokia operating cash flow of EUR 1.0 billion. - Total cash and other liquid assets of EUR 9.7 billion at the end of Q1 2010.
When it comes to the second quarter of the ongoing year, the company expects for its Devices & Services net sales to be situated between EUR 6.7 billion and EUR 7.2 billion. Nokia's non-IFRS operating margin in Devices & Services is expected to be of 9% to 12% in the second quarter 2010, while Nokia Siemens Networks' net sales are forecast to be between EUR 3.1 billion and EUR 3.4 billion in the time frame. Nokia also notes that the industry mobile device volumes are expected to increase in 2010 by 10 percent from the last year, and that its market share should remain flat from 2009.
“In Q1, Nokia delivered both year-on-year net sales and operating profit growth. We continue to face tough competition with respect to the high end of our mobile device portfolio, as well as challenging market conditions on the infrastructure side. During the quarter, we also demonstrated our ability to deliver the Nokia smartphone experience to consumers on a global scale, with our smartphone shipments up by more than 50% year-on-year. The consumer response to the inclusion of our walk and drive navigation offering on our smartphones has been tremendous. Since launching in January, 10 million Nokia smartphone users around the world have downloaded the offering,” Olli-Pekka Kallasvuo, Nokia CEO, stated.