Nokia’s Missed Call – Net Sales Down 27% in Q1
At a
time when mobile devices are fast becoming ordinary commodities, Nokia
has felt the jolt with its net sales falling down 27% year-on-year (YoY)
at EUR 9.3 billion for the first quarter of 2009. Declaring its results
today (April 16), it also reveals that its mobile device volumes of 93.2
million units have also suffered a 19% YoY decline against an industry
drop of 14%.
"In
what has been an exceptionally tough environment, we continue to invest
in a focused manner in consumer Internet services delivered across our
broad portfolio of mobile devices. Combined, these solutions will drive
our future growth. As an example in Q1, I am especially pleased with the
performance of our first mass market touch product, the Nokia 5800
XpressMusic. Together with Comes With Music, it is a great example of
Nokia providing solutions that consumers value,” says Olli-Pekka
Kallasvuo, Nokia CEO.
The
company also says that the estimated industry mobile device volumes of
255 million units are down 14% YoY and down 16% sequentially. Nokia’s
estimated mobile device market share of 37% in Q1 2009 is down from 39%
in Q1 2008 and unchanged from Q4 2008.
Nokia has suffered this drop
even as it had reduced its device prices. Its mobile device average
selling price (ASP) in the first quarter 2009 was EUR 65, down from EUR
79 in the first quarter 2008 and down from EUR 71 in the fourth quarter
2008.
Both
the YoY and sequential declines, it says, were primarily due to general
price pressure, a higher proportion of sales of lower priced products,
and lower-than-expected device volumes in its Nseries range of high-end
devices.
Among
the device models, Nokia 5800 XpressMusic volumes touched 2.6 million
units, with cumulative shipments of more than 3 million units since the
smartphone's launch in November 2008.
Also,
Nokia Siemens Networks net sales of EUR 3.0 billion has come down by 12%
YoY and down 31% sequentially.
While
it expects 2009 industry mobile device volumes to decline approximately
10% from 2008 levels, it says its mobile device market share in the
second quarter 2009 will increase.
The
Annual General Meeting will be held on April 23, 2009, says the
company.
1
EUR = 1.296 USD
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