14 DAY TRIAL // Today, Finnish mobile phone maker Nokia, the world's leading handset vendor, announced its financial results for the third quarter of the ongoing year, and posted net sales of EUR 10.3 billion, while unveiling smartphone shipments of 26.5 million units.
According to the company, its net sales went up 5 percent on a yearly basis, while increasing 3 percent from the previous quarter, whereas the smartphone shipments grew 61 percent from the third quarter of the last year, and 10 percent from the second quarter of 2010.
The mobile phone maker announced that net sales of Devices & Services totaled EUR 7.2 billion, up 4 percent on a yearly basis and 6 percent sequentially, and that services net sales were of EUR 159 million, up 7 percent at 1 percent, respectively.
Other highlights from the company's announcement include:
- Nokia total mobile device volumes of 110.4 million units, up 2% year-on-year and down 1% sequentially. - Nokia mobile device ASP (including services revenue) of EUR 65, up from EUR 64 in Q3 2009 and EUR 61 in Q2 2010. - Devices & Services gross margin of 29.0%, down from 30.9% in Q3 2009 and 30.2% in Q2 2010. - Devices & Services non-IFRS operating margin of 10.5%, down from 11.4% in Q3 2009 and up from 9.5% in Q2 2010. - NAVTEQ non-IFRS net sales of EUR 252 million, up 52% year-on-year and flat sequentially (up 47% and down 2% at constant currency).
Nokia Siemens Networks posted net sales of EUR 2.9 billion, marking an increase of 7 percent from the third quarter of the last year, though going down 3 percent on quarter.
Nokia also announced operating cash flow of EUR 439 million, as well as total cash and other liquid assets of EUR 10.2 billion, along with net cash and other liquid assets of EUR 4.4 billion, at the end of Q3 2010.
For the fourth quarter of the year, the company expects net sales of between EUR 8.2 billion and EUR 8.7 billion.
At the same time, the handset vendor says that industry mobile device volumes should increase by more than 10 percent from the last year, and that its market share should decline slightly this year, when compared to the previous year.
“In the five weeks since joining Nokia, I have found a company with many great strengths and a history of achievement that are second to none in the industry,” Stephen Elop, Nokia CEO, stated.
“And yet our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry.
“Some of our most recent product launches illustrate that we have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption.
“We will make both the strategic and operational improvements necessary to ensure that we continue to delight our customers and deliver superior financial results to our shareholders,” he concluded.