Wednesday, January 26, 2011

Nokia's Q4 Sales Rise to EUR 12.7 Billion, up 6% YoY

Nokia reported net sales of EUR 12.7 billion for Q4 2010, up 6% year-on-year and 23% sequentially (flat and up 24% at constant currency).

"In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it's time for Nokia to change faster," stated Stephen Elop, Nokia's CEO.

Some highlights:

Based on Nokia's preliminary estimate, industry mobile device volumes increased 13% in 2010, compared to 2009 (based on Nokia's revised definition of the industry mobile device market applicable beginning in 2010).

Based on Nokia's preliminary market estimate, Nokia's mobile device volume market share decreased to 32% in 2010, compared to 34% in 2009 (based on Nokia's revised definition of the industry mobile device market share applicable beginning in 2010).

Nokia's estimated mobile device value market share was down slightly in 2010, compared to 2009.

Nokia Siemens Networks recorded net sales of EUR 4.0 billion in Q4 2010, up 9% year-on-year and 35% sequentially (up 7% and 37% at constant currency).

For Nokia Siemens Networks, the year-on-year 9% increase in net sales was primarily driven by growth in both the product and services businesses in most regions. The sequential 35% increase in net sales was primarily driven by a seasonally stronger infrastructure market in the fourth quarter 2010. Net sales in the fourth quarter 2010 also benefited from an improvement in overall component availability. Of total Nokia Siemens Networks net sales, services contributed EUR 1.8 billion in the fourth quarter 2010, compared to EUR 1.7 billion in the fourth quarter 2009 and EUR 1.4 billion in the third quarter 2010. At constant currency, Nokia Siemens Networks net sales would have increased 7% year-on-year,