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Nokia reports 66% dip in Q2 profit

Net sales of €9.9 billion, down 25%

By CBR Staff Writer

Nokia has posted net sales of €9.9 billion for the second quarter of 2009, down 25%, compared with net sales of €13.15 billion for the same period last year.

The company has reported a profit of €380m, down 66% compared with €1.1 billion for the same quarter in the previous year due to the weakening demand for handset sales.

The handset maker shipped 103.2 million mobile devices, down 15% year on year and up 11% sequentially. Nokia estimates its mobile device market share to be 38% in second quarter, down from 40% in Q2 2008.

The net sales of its Devices and Services group were down 28% to €6.6 billion compared to the year-ago quarter. Net sales from Nokia Siemens Networks, a joint venture between Nokia and Germany’s Siemens, was €3.2 billion, down 21% year on year.

However, Olli-pekka kallasvuo, CEO of Nokia, said: “Competition remains intense, but demand in the overall mobile device market appears to be bottoming out. As before, we are continuing to tightly manage our operating expenses.

“We are balancing short-term priorities with our longer-term growth ambitions as elements of the mobile handset, PC, internet and media industries converge to form a new industry. Consumers will increasingly expect devices and services designed as integrated solutions. To capture this opportunity we are accelerating our strategic transformation into a solutions company.

Nokia expects its market share to be flat in 2009, compared with 2008. It expects industry mobile device volumes in the third quarter 2009 to be at around the same level or up slightly sequentially.

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