Nokia: Winner or Loser in third quarter?
Nokia the leading mobile phone company globally reported lower operating profit and net sales for its third quarter that ended on September 30.
Net sales in Nokia fell to $16.6 billion from $17.5 billion from the same time the year previous. Operating profit also saw a decline dropping from the previous year of $2.52 billion to the year at $1.99 billion. This making the operating margin for the third quarter being 12 percent down from 2007 third quarter that was at 14.4 percent.
If we look at Nokia’s device sale volume, selling 117.8 million units, which see’s an increase year-on-year. However Nokia’s share in the market declined 1 percent to 38 percent from the previous year’s third quarter although a drop of 2 percent from the second quarter of this year.
The CEO of Nokia Olli- Pekka Kallasvuo said that Nokia was well positioned for the current times and that it was due to Nokia’s strong operational market and management position that they can achieve solid margins and operating cash flow of 1.3 billion euro’s for the third quarter of 2008.
Nokia’s average mobile device is priced at $97.83 for the third quarter of 2008 which is down from the same period in 2007 which was at $111.41 mainly due to the weak dollar and lower priced product.