Wednesday, July 20, 2005

Nokia Reports Sales Growth of 25% YoY, Expects Mobile Device Market to Reach 760 Million Units this Year

Nokia reported Q2 revenue of Q2 revenue of EUR 8.1 Billion and EPS EUR 0.18, representing overall sales growth of 25% year on year for the quarter.

In mobile device volumes, Nokia saw year-on-year growth of 34%, which pushed its market share in mobile devices up to an estimated 33%. Nokia said overall industry volumes were slightly higher than expected, prompting the company to upgrade its full-year market estimate by 20 million to about 760 million units.

The growth came primarily from emerging markets where low-end products predominate and pricing pressures are currently intense. Average selling prices continued to edge downwards. This was certainly the case for Nokia in the second quarter, which in turn reported lower profitability.

Third-quarter Nokia group net sales are expected to be in the range of EUR 7.9 billion to EUR 8.2 billion, compared with EUR 7.1 billion in the third quarter 2004. EPS (diluted) is expected to be in the range of EUR 0.14 to EUR 0.17, compared with EPS (diluted) EUR 0.15 in the third quarter 2004.

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