In the first quarter 2008, Nokia’s total mobile device volume reached 115.5 million units, representing 27% year on year growth and a 13% sequential decrease. The overall industry volume for the same period reached an estimated 295 million units, representing 17% year on year growth and a 12% sequential decrease. The average selling price (ASP) in Q1 was EUR 79, down from EUR 89 in the first quarter 2007 and down from EUR 83 in the fourth quarter 2007. The company shipped close to 10 million Nokia Nseries and almost 2 million Nokia Eseries devices during Q1.
FIRST QUARTER 2008 HIGHLIGHTS
- Nokia net sales of EUR 12.7 billion, up 28% year on year (up 35% at constant currency).
- Nokia diluted EPS of EUR 0.38, growing 46% from Q1 2007, excluding special items.
- Nokia operating margin of 14.7%, up year on year from 13.6% in Q1 2007, down sequentially from 15.9% in Q4 2007, excluding special items.
- Nokia Devices & Services operating margin of 21.2%, up year on year from 16.0%, down sequentially from 22.8% in Q4 2007, excluding special items.
- Nokia operating cash flow of EUR 0.8 billion.
- Nokia device volumes of 115.5 million units, up 27% year on year and down 13% sequentially.
- Estimated industry device volumes of 295 million units, up 17% year on year and down 12% sequentially.
- Nokia estimated device market share of 39%, up from 36% in Q1 2007 and down from 40% in Q4 2007.
- Nokia device ASP of EUR 79, down from EUR 83 in Q4 2007. (Device ASP excludes net sales from Services & Software)
- Nokia Siemens Networks operating margin was -1.1%, excluding special items, and was a positive 2.4%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks.
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the second quarter 2008 to be up slightly sequentially, similar to the market growth in the second quarter 2007, compared to the first quarter 2007.
- Nokia’s mobile device market share in the second quarter 2008 is expected to increase sequentially.
- Nokia continues to expect industry mobile device volumes in 2008 to grow approximately 10% from the approximately 1.14 billion units Nokia estimates for 2007.
- Nokia expects the mobile device market to decline in value in Euro terms in 2008, compared to 2007. The change from Nokia’s previous estimate of value growth for this market primarily reflects the negative impact of the recently weakened US dollar, the general economic slowdown in the US, and possibly going forward some economic slowdown in Europe.
- Nokia continues to expect some decline in industry ASPs in 2008, primarily reflecting the increasing impact of the emerging markets and competitive factors in general.
- Nokia continues to target an increase in its market share in mobile devices in 2008.
- Nokia expects the mobile and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007. The change from the previous estimate of “very slight growth” for this market primarily reflects the negative impact of the recently weakened US dollar.
- Nokia and Nokia Siemens Networks target for Nokia Siemens Networks market share to remain constant in 2008, compared to 2007.
- Nokia and Nokia Siemens Networks cost synergy target for Nokia Siemens Networks is to achieve substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008, as previously announced.
NOKIA SIEMENS NETWORKS
Nokia Siemens Networks posted Q1 net sales of EUR 3.4 billion, down 26% compared to the fourth quarter of 2007. This primarily reflects a normal seasonally lower first quarter, compared to a strong fourth quarter 2007.
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