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Sep09: Nokia Reports Loss; NSN Writeoff; 1.8M N97s Shipped; Converged Devices

nokia-n900Nokia has booked a EUR 908 million write-down in Nokia Siemens Networks, which reported a EUR 1.107 billion operating loss, on sales of 2.76 billion, for the quarter ended September 30th 2009. “The challenging competitive factors and market conditions in the infrastructure and related services business necessitated non-cash impairment charges at Nokia Siemens Networks,” Nokia CEO Olli-Pekka Kallasvuo said.

Net sales for Nokia fell 20 percent year on year and 1 percent sequentially, as the company reported a negative earnings per share at EUR 0.15, down from EUR 0.10 reported last quarter and EUR 0.29 for the corresponding quarter last year.

Sep09 Details: Financials | Presentation | Release | Webcast

Devices & Services: Market Improves QoQ, Nokia Under Performs

There appears to be a quarter on quarter improvement in handset sales, even as Nokia is under-performing the market in terms of volumes: Nokia’s Devices & Services business reported net sales of EUR 6.9 billion, down 20 percent year on year, but on a brighter note, up 5 percent sequentially, helped by a 5 percent sequential increase in mobile device volumes at 108.5 million units (industry: up 7 percent sequentially at 288 million units). Year on year, though, device sales for Nokia were down 8 percent (industry decline: 7 percent). However, Nokia claims to have retained their marketshare of 38 percent: marketshare decline in Greater China, Asia Pacific and North America was offset by an increase in markeshare in Europe, Latin America, Middle East & Africa.


The average selling price (ASP) for Nokia devices remained the same at EUR 62 compared to Q2 2009, but fell significantly year on year from EUR 72. Kallasvuo has said that the demand for mobile devices improved in many markets during Q3. However, according to Kallasvuo, “Volumes and net sales were somewhat constrained by component shortages we encountered across the portfolio.” During Q3-09, Devices & Services reported a 51 percent year-on-year decline in operating profit decreased 51% to EUR 785 million from EUR 1.6 billion for Q3-08.

Converged Mobile Devices & Services

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Nokia sold 16.4 million converged mobile devices (industry: 47 million), up from 15.5 million units (industry estimate – 44.2 million) in the same quarter last year, and down from 16.9 million units (industry: 41 million units) in the last quarter. Sequentially, Nokia’s marketshare of converged devices fell from 41 percent Q2-09 to 35 percent in Q3-09. Net sales from smartphones and mobile computer solutions totaled EUR 3.1 billion, flat sequentially for the quarter ending September 30th 2009.

The Average Selling Price for converged devices and services was EUR 190, up from EUR 182 for the quarter ending June 30th 2009. Nokia shipped 4.5 million Nokia Nseries and 4.4 million Nokia Eseries devices down from the combined 9.3 million Nseries and Eseries devices shipped in the second quarter 2009. The company shipped 1.8 million N97 devices, and 5.7 million touchscreen devices altogether during the quarter. Nokia has also announced the N97 mini, which will feature Ovi Lifecasting, developed in partnership with Facebook.

Nokia expects industry mobile device volumes in the fourth quarter 2009 to be up sequentially, for its marketshare to remain constant. The company expects mobile device volumes to be approximately 1.12 billion units in 2009, down  approximately 7 percent from approximately 1.21 billion units Nokia estimated for 2008. Nokia had earlier expected lower device volumes for 2009, at a decline of 10 percent.


During the quarter, Nokia acquired certain assets of cellity, a mobile software company that has developed a solution for aggregating address book data; certain assets of Plum Ventures, a company that develops and operates a cloud-based social media sharing and messaging service for private groups; and Dopplr, a mobile service provider for international travelers. These are going to be integrated into the Ovi services business.

Additionally, the company claims that over 2 million people have now activated an Ovi Mail account. Nokia also announced the Ovi SDK beta, Ovi Maps Player API for mobile, and Ovi Navigation Player API, for developing applications for Symbian and Maemo platforms. Nokia launched With Music in India Austria, the Netherlands and South Africa during the quarter. Nokia announced the Nokia X6, a device with 32 GB on board memory, which will be available in a Comes With Music format, apart from the Nokia X3,which is an affordable music device and the first Series 40-powered device enabled for Ovi Store. The Nokia 5230, an affordable touch smartphone that will also be available in select markets with ‘Comes With Music’.

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— Q2-09: Nokia Ships 500k N97s In June; Expects Flat Q3; Reports QoQ Growth; NAVTEQ
— Q209 Details: FinancialsPresentationReleaseWebcast
— Q1-09: Handset Shipments Decline 18% As Nokia Posts 26.7% Drop In Sales

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



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