Nokia Q3 2008 results

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Nokia today released its 3rd quarter results for 2008. Converged mobile device shipments (S60 phones) were 15.5 million (down from 16 million in Q3 2007) including 9 million Nseries and 3 million Eseries devices. Sales and profit were down, but the gross margin in the device and services division increased (36.5% from 36.1%). Nokia's market share fell to 38%, from 39% last year and 40% last quarter.

Other highlights from the results include:

  • The average selling price of a Nokia phone feel to EUR 72 from EUR 74. Sales of high-end devices were down due to increased competition and economic conditions (especially in Western markets).

  • Essentially the economic pinch is being felt in Western markets, but this is counter-balanced by continued growth in emerging markets. However average handset prices are lower in these markets. In Western markets people are waiting longer to replace their handsets (partly economic, partly due to 18 month contracts).

  • Nokia gave a positive outlook for the future. It forecast a continued growth in the mobile phone industry and expects its market share to increase.
  • Nokia sold 117.8 million devices, up 5.5% year on year and down 6% sequentially.

  • Services and software net sales of EUR 115 million.

  • This quarter the figures from Navteq are included for the first time.

Here is the CEO, Olli-Pekka Kallasvuo, summary:

"As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008. With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times."

You can view the full press release, with the usual run down of numbers and statements on the Nokia website.