Nokia phone sales fall flat

16 Oct 2003

Mobile phone maker Nokia has reported that net sales declined 5pc in the third quarter to €6.9bn, and that overall mobile phone sales were flat at €5.6bn.

Despite the flat sales, the company’s CEO and chairman Jorma Ollila said that the third quarter brought sharp volume increases for the company and an increase in global mobile phone market share.

He said: “During the quarter, we saw our overall mobile phone market share rise to 39pc, up from 36pc in the same quarter last year. In addition to our ongoing strength in Europe, we established clear leadership in the US and the Americas markets. In China, we have now gained the leading position in the GSM market, and see ourselves strongly positioned to achieve overall market leadership there.”

In terms of new products, the company introduced several new camera phones as well as the introduction of the Nokia N-gage gaming device, which sold out in many stores on the first day of its release.

Third quarter pro forma operating profit for Nokia declined 2pc to €1.1bn and net profits across the group also fell 2pc to €861m.

The company said it still had cash reserves in the region of €10.8bn.

From January the company will be implementing a new operating sturcture that will see it be reorganised into four business groups, which will include mobile phones, multimedia, networks and enterprise solutions.

By John Kennedy