Nokia profit and sales grow, but Q1 still disappoints

The company hopes upcoming high-end models will improve its smartphone fortunes

Nokia reported improved profits and revenue for the first quarter, but both numbers were below analysts' expectations. The company also lowered its operating margin outlook for 2010.

Nokia's first-quarter profit came in at €349 million (US$465 million), up from €122 million a year ago, helped by cost cuts and increased smartphone sales. Revenue grew by 3 percent and totaled €9.5 billion.

The company continues to face tough competition in the high-end sector of the mobile phone arena and challenging market conditions on the infrastructure side of the business, where it is represented by Nokia Siemens Networks, according to a statement.

Much has been made of Nokia's deficiencies in the smartphone segment. The company sold 21.5 million smartphones in the first quarter 2010, an increase of 57 percent compared the same period in 2009 and 3 percent more than in the fourth quarter of 2009. That means Nokia's market share now stands at 41 percent, a one point gain over the last quarter of 2009.

The growth mainly comes from lower priced smartphones. However, Nokia still doesn't have a high-end smartphone that can compete with the likes of the iPhone and the Google Nexus One and its sibling, the HTC Desire.

That has an effect on Nokia's average sales price per phone, which was down to €62 from €66 a year ago. The average sales price of its smartphones dropped from €190 to €155.

The company is planning a family of smartphones based on the Symbian 3 operating system, which will offer the improved user experience Nokia's CEO Olli-Pekka Kallasvuo has been promising. The first device will be launched during the second quarter and shipped in the third quarter, according to Nokia. That's later than originally planned, but the company is putting quality first, Kallasvuo said during a conference call.

In total, Nokia sold 107.8 million phones during the first quarter, which was up 16 percent year-on-year.

The Finnish phone manufacturer also commented on the repercussions of the ash cloud from the Icelandic volcano Eyjafjallajökull. Nokia said it has adjusted its logistics operation to help ensure the availability of products and components. However, it is too soon to gauge the overall impact of the eruption that disrupted air travel throughout Europe in recent days, according to Nokia. It may have an adverse impact on sales, but that depends on how long the alternative measures have to be in place, Nokia said.

Nokia expects sales of mobile devices will increase by 10 percent in 2010.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Nokiamobile phonesfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?