Nokia stretches lead at top of vendor table

Profit soars for Nokia on strong performance in device business.

  • E-Mail
By  Ronan Shields Published  August 7, 2007

Nokia's net profit soared 148% year-on-year during the second quarter of 2007 to US$3.9 billion, the company reported August 2.

The Finnish handset and infrastructure vendor saw its mobile device unit's shipments jump 29% annually, and 11% sequentially, to 100.8 million units with revenues of US$8.2 billion and an operating profit of US$1.7 billion, up 28% from the year ago period.

"Nokia continued to grow in the second quarter thanks to an excellent performance from our device businesses. Nokia's share of the global device market improved to an estimated 38% [up 2% sequentially and 4% annually], while operating margins in our device businesses were at their highest level in three years," said Nokia CEO Olli-Pekka Kallasvuo.

The company shipped 17.1% of its overall volumes to the Middle East and Africa (MEA) during the quarter, representing a 36.8% year-on-year rise, as the company credited the strong performance of its mobile devices business to "strong gains" in emerging markets in MEA, Asia Pacific and Latin America.

This was reflected in the company's average selling price (ASP), which fell annually by US$17 to US$124 during 2Q07. The company did highlight, however, that it shipped 13.9 million units in the ‘converged device' category, up from nine million units for the corresponding period in 2006, with Nokia's Nseries having constituted the bulk of shipments.

Market research firm IDC claimed that Nokia shipped more units than its three nearest rivals combined in the quarter.

Samsung clinched the second position in the global handset market, in terms of unit shipments, with volumes of 37.4 million, according to IDC. Samsung's 13.7% market share was enough to edge out US rival Motorola whose 35.5 million unit shipments equated to 13%.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code