Smart phones to the rescue as Nokia reports Q4 profit rise

28 Jan 2010

Finnish mobile phone maker Nokia has reported a sharp bump in its profits during the fourth quarter as its share of the smart-phone market increased.

The company reported profits of €948 million for the final three months of 2009, which represents a 65pc jump on the €576 million reported in the same quarter in 2008, and roundly beating analysts’ expectations of €620 million.

These profits were achieved despite a 5pc fall in net sales from €12.6 billion to €12 billion during the quarter.

The world’s largest mobile phone maker has taken quite a beating as rival firms have released a series of smart phones, such as Apple with its iPhone and RIM with its BlackBerry, that have proved very popular with consumers.          

However, Nokia shipped 20.8 million units of smart phones and mobile computers during the fourth quarter, compared with 15.1 million units in the fourth quarter of 2008 and 16.4 million units in the third quarter of 2009.

“We grew our market share in smart phones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smart phones, 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,” said Nokia CEO, Olli-Pekka Kallasvuo.

“Our solid results also owe a good deal to world-class supply chain management and impressive sales execution,” he added.

Kallasvuo said that Nokia’s focus remains firmly on execution, “especially around user experience”.

“Here I want to highlight our move to shake up the navigation market with free walk and drive navigation on our smart phones, a good example of how we are leveraging our assets to bring real benefits to consumers,” he said.

Nokia maintained its previous outlook from December for a 12pc-14pc operating margin, a flat handset volume market share and 10pc handset market volume growth in 2010.

Photo: Nokia CEO Olli-Pekka Kallasvuo

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