Mobile device maker Nokia reported a flat second quarter with sales up just 1pc to €10bn and operating profits down 31pc to €295m. Despite this CEO Olli-Pekka Kallasvuo is optimistic and is planning a fight-back at the higher end of the smartphones business.
The company’s Nokia Siemens Networks division, which is acquiring Motrola’s wireless networks division, reported a 5pc drop in revenues of €3bn, the NAVTEQ division saw a 71pc jump in revenues of €252m and the Devices and Services division saw sales rise 3pc to €6.7bn.
The Finnish phone maker, which recently sold its wireless modem business, has an operating cash flow of €944m and has total cash and other assets worth €9.5bn.
“Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future,” Kallasvuo said.
“For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models.
“In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian 3 devices, will have a user experience superior to that of any smartphone Nokia has created.
“The Nokia N8 will be followed soon thereafter by further Symbian 3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market,” Kallasvuo said.
Nokia expects Devices & Services net sales to be between €6.7 billion and €7.2 billion in the third quarter 2010.
Nokia continues to expect industry mobile device volumes to be up approximately 10% in 2010, compared to 2009.
The company said its mobile device volume market share will be flat in 2010, compared to 2009.