Wednesday, January 27, 2010

Nokia Sees Growth in Smartphones

Driven by a 17% sequentially jump in mobile device sales, Nokia reported Q4 2009 net sales of EUR 12.0 billion -- up 22% sequentially but still down 5% compared with a year earlier. Nokia's mobile device market share increased, as the industry as a whole shipped an estimated 329 million units during the fourth quarter, up 8%
year on year and up 14% sequentially.

"We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our Devices & Services unit, both quarter-on-quarter and year-on-year. Our solid results also owe a good deal to world class supply chain management and impressive sales execution," stated Nokia CEO Olli-Pekka KALLASVUO.

Some highlights for the quarter.

  • Devices & Services net sales of EUR 8.2 billion, up 0.5% year on year and up 18% sequentially (up 2% and 16% at constant currency).

  • Services net sales of EUR 169 million, up 15% sequentially; billings of EUR 226 million, up 31% sequentially.

  • Nokia mobile device volumes of 126.9 million units, up 12% year on year and up 17% sequentially.

  • Nokia estimated mobile device market share of 39% in Q4 2009, up from an estimated 37% in Q4 2008 and 38% in Q3 2009. The full year 2009 estimated market share was 38%, down from 39% in 2008.

  • Nokia grew its converged device market share to an estimated 40%, from an estimated 35% in Q3 2009.

  • Nokia improved the ASP of its mobile devices to EUR 63, from EUR 62 in Q3 2009.

  • Devices & Services increased its gross margin to 34.3%, from 30.9% in Q3 2009.

  • NAVTEQ non-IFRS net sales of EUR 225 million, up 9% year on year and up 36% sequentially, and non-IFRS operating margin of 24.0%, down from 25.9% in Q3 2009.

  • Nokia Siemens Networks net sales of EUR 3.6 billion, down 16% year on year and up 31% sequentially (down 17% and up 29% at constant currency).

  • Nokia operating cash flow of EUR 1.5 billion, more than double the operating cash flow for Q3 2009.

  • Total cash and other liquid assets of EUR 8.9 billion at the end of Q4 2009.

See also