Nokia has released its Q2 2006 financial and sales results. The overall picture is healthy with sales up 22% (78.4m of 230m industry total). In the converged device (smartphone) space Nokia sold 9 million units compared to 6.7 million units in Q2 2005. Nseries device shipments are up 60% from Q1 2006 to 3 million. The converged device segment continues to be the fastest growing area in mobile device volumes.

Rafe's comments: 

Nokia's overall results remain healthy. Marketshare drops slightly from the previous quarter (from 35% to 34%), but is up from 33% in Q2 2005. The average selling price of Nokia devices is down €1 to €102 from the previous quarter as more mid tier and low tier devices ship. Nokia WCDMA device market share continues to grow - in Q2 2006 it was 30% with particuarly strong growth in Europe.

Nokia's Q2 figures for converged devices show continued growth and are the first to include Symbian OS 9.1. devices, although the full impact of such devices will not be apparent until the Q3 results. Nokia note that Eseries device shipment are due to ramp up in Q3 and with further mid tier devices on the way continued growth seems assured. Q3 and Q4 which are traditionally the highest sales period for mobile devices and we should see Nokia ship more than 10 million converged devices in both quarters with 2006's total at around 41 million.

Nseries devices see an impressive jump in shipment to 6 million - a 60% sequential growth - helped by continued shipment of the N70/N90 and the first shipments of the N71, N80 and N91. 

The Enterpise group at Nokia continues to lose money, but has increased sales and reduced losses. The full impact of the Eseries and related strategies should become apparent in Q3 and Q4 of this year.