14 DAY TRIAL // Finnish mobile phone maker Nokia has announced today its financial results for the second quarter of the ongoing year, and has posted net sales 25 percent lower when compared to the second quarter of last year, yet 7 percent higher compared to the first quarter of the ongoing year. The company reported Net sales of EUR 9,912 million, down from the EUR 13,151 million reported in Q2, 2008, and up from the EUR 9,274 million in Q1, 2009.
In addition to higher net sales on a quarterly basis, the company also reported operating cash flow of EUR 716 million. Nokia reported mobile device volumes of 103.2 million units in the quarter, down 15 percent compared to the same time frame a year ago and up 11 percent from the previous quarter. The mobile phone maker also estimates a mobile device market share of 38 percent in Q2, 2009, registering a drop on a yearly basis (40 percent in Q2, 2008) and a rise sequentially (37 percent in Q1, 2009).
“Nokia put in a solid performance in what was another tough quarter. We increased our share of the global mobile device market sequentially to an estimated 38% and grew our smartphone market share to an estimated 41%. 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. As before, we are continuing to tightly manage our operating expenses,” Olli-Pekka Kallasvuo, Nokia CEO, stated.
Other financial details reported by the company for the time frame include net sales of EUR 6.6 billion, as well as a gross margin of 34.0 percent for the Devices & Services area. The mobile phone maker also posted services net sales of EUR 140 million, and reported a mobile device ASP of EUR 62. Nokia also announced estimated industry mobile device volumes of 268 million units, which registered a 12 percent dive year on year and a 5 percent rise on a quarterly basis.
When it comes to the following quarter, the company says that industry mobile device volumes in Q3 should remain either at the same levels as they currently are or rise slightly. Compared to last year, the volumes are still expected to drop about 10 percent, though its market share in the third quarter should remain about the same as in the second quarter. In addition, although it stated previously that its market share should rise during the ongoing year, Nokia updated the prevision and also stated that the market share should remain flat during 2009 compared to 2008.