Citing tough competition in high-end mobile devices, Nokia reported Q1 2010 net sales of EUR 9.5 billion, up 3% year-on-year and down 21% sequentially (up 1% and down 21% at constant currency).
For Nokia Siemens Networks, first quarter 2010 net sales decreased 9% to EUR 2.7 billion, compared with EUR 3.0 billion in the first quarter 2009, reflecting challenging competitive factors and market conditions. However, gross profit increased 11% to EUR 782 million, compared with EUR 703 million in the first quarter 2009, with a gross margin of 28.8% (23.5%).
Some highlights for the quarter:
- Devices & Services net sales of EUR 6.7 billion, up 8% year-on-year and down 19% sequentially (up 7% and down 19% at constant currency). A key highlight in Q1 was the inclusion of navigation into Nokia smartphones. Devices & Services net sales are forecast to be between EUR 6.7 billion and EUR 7.2 billion in the second quarter 2010.
- Services net sales of EUR 148 million, down 12% sequentially; billings of EUR 228 million, up 1% sequentially.
- Nokia total mobile device volumes of 107.8 million units, up 16% year-on-year and down 15% sequentially.
- Nokia converged mobile device (smartphone and mobile computer) volumes of 21.5 million units, up 57% year-on-year and up 3% sequentially. The company believes its device market share was 33 percent in Q1 — down 2 percent sequentially
- Nokia mobile device ASP (including services revenue) of EUR 62, down from EUR 64 in Q4 2009.
- Devices & Services gross margin of 32.4%, down from 33.8% in Q1 2009 and 34.3% in Q4 2009.
- Devices & Services non-IFRS operating margin of 12.1%, up from 10.4% in Q1 2009 and down from 15.4% in Q4 2009.
- NAVTEQ non-IFRS net sales of EUR 189 million, up 41% year-on-year and down 16% sequentially (up 46% and down 18% at constant currency).
- Nokia Siemens Networks net sales of EUR 2.7 billion, down 9% year-on-year and down 25% sequentially (down 12% and 27% at constant currency).
- Nokia Siemens Networks non-IFRS operating margin of 0.6%, up from -4.1% in Q1 2009 and down from 5.5% in Q4 2009.
- Nokia operating cash flow of EUR 1.0 billion.
- Total cash and other liquid assets of EUR 9.7 billion at the end of Q1 2010.
“During the quarter, we also demonstrated our ability to deliver the Nokia smartphone experience to consumers on a global scale, with our smartphone shipments up by more than 50% year-on-year… In infrastructure, Nokia Siemens Networks’ profitability benefited from a positive sales mix in Q1. I am also pleased to see encouraging results from the company’s focus on helping operators meet the challenge of the rapid growth in data and signaling traffic from smartphones,” stated Olli-Pekka KALLASVUO, Nokia’s CEO.
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