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Nokia profits up, share price down. Go figure
Tim Green Apr 17 2008, 5:08pm
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Nokia shipped 115.5 million devices in 1Q, up 27 per cent from a year earlier.
These sales were driven by Nokia’s strength at both the top-end smartphone space and the sub $50 budget sector. It claimed ‘converged device volumes’ of 14.6 million units, of which ten million were Nseries and almost two million were Eseries.
Geographically, it’s the emerging markets that are driving Nokia. Quarterly unit sales in China were up from 15.7m to 21m, in Asia Pac from 23.7m to 34.2m, and in Latin America from 7.3m to 11.9m. Sales slipped in Europe and North America.
Nokia's global market share in the first quarter consequently remained high. It rose to 39 per cent from 36 percent a year earlier, although it had hit 40 per cent during 2007.
Nokia asserts the global handset market will rise 10 per cent by units this year and that it can further increase its market share
The firm’s first-quarter profits also rose, but not enough for the market, which forced its share price downwards. The company was hit by lower average selling prices and a weaker dollar even though its sales volumes grow by 10 per cent. The dollar has lost about 15 per cent against the euro in the past year, reducing revenue in euros.
No subscriber figures were disclosed for its various Ovi music and navigation services.
Comments
“Nokia results”
Posted by: nokia share holder - Apr 18, 7:16pm
How come a 25% increase in revenue is slammed by the market when at the same time the US government is bailing out the big banks with billions of US tax payers money. I wish others would perform as well as Nokia