14 DAY TRIAL // Nokia's results for the second financial quarter of this year have been published. The company has managed to reach 38 percent of market share and strongly increase device margins.
Results for the leading mobile phone producer are quite bright, especially when considering the fact that most of its competitors have registered profit drops. The net sales have increased with almost 30 percent. This is mainly due to enterprise solutions which have reached an evolution of more than 90 percent, while the mobile phone line has grown with only one percent, if that can be considered an accountable increase.
"Nokia continued to grow in the second quarter thanks to an excellent performance from our device businesses. Nokia now has some major hit products across what is already the industry's broadest product portfolio. I am particularly encouraged by the success of a number of recently launched higher end devices, which made a strong contribution to increased profitability", said Olli-Pekka Kallasvu, CEO at Nokia.
The Finnish company has decided to include Nokia Siemens's financial results in their own starting with this second quarter, which makes comparisons with previous years difficult. "Nokia Siemens Networks had a challenging quarter. Both net sales and margins were weak and these adverse developments require decisive action. Accordingly, Nokia and Nokia Siemens Networks are accelerating and increasing the new company's annual cost synergies target", further declared Olli-Pekka Kallasvu.
Nokia has high expectations from the next quarter too, as they hope for substantial increases in their device market share. The company is going through restructuring chances, which they hope to show in the future results. Nokia and Nokia Siemens Networks have accelerated their cost synergy target for Nokia Siemens Networks and now aim to achieve the approximate EUR 1.5 billion of annual cost synergies by the end of 2008 rather than by 2010.