Nokia Q1 2011 earnings report. 108.5M Nokia phones, 24.2M Nokia smartphones.
Nokia Q1 2011 earnings report is available for you guys to have a look at:
Report in PDF AVAILABLE HERE .
- Devices and services, NAVTEQ and NSN sales up Year on Year, but down from previous quarter and down in profit.
- Note: post holiday season, more so, post February 11 (Nokia switching to Windows Phone) and aggressive competition from other manufacturers.
Here’s device details
- 24.2 Million smartphones. 13% more than last year.
- 84.3 Million “dumb” phones, 2% DOWN from last year (shift going to smartphones)
- 108.5 Million Nokia phones shipped. In 1 quarter.
- All down from last quarter, where Nokia alone sold 28.3 million smartphones.
FIRST QUARTER 2011 HIGHLIGHTS
- – Nokia net sales of EUR 10.4 billion in Q1 2011, up 9% year-on-year and down 18% sequentially (up 4% and down 18% at constant currency).
- – Devices & Services net sales of EUR 7.1 billion in Q1 2011, up 6% year-on-year and down 17% sequentially (up 1% and down 16% at constant currency).
- – Services net sales of EUR 211 million in Q1 2011, up 43% year-on-year and 5% sequentially; billings of EUR 338 million, up 48% year-on-year and down 4% sequentially.
- – Nokia total mobile device volumes of 108.5 million units in Q1 2011, up 1% year-on-year and down 12% sequentially.
- – Nokia converged mobile device (smartphone and mobile computer) volumes of 24.2 million units in Q1 2011, up 13% year-on-year and down 14% sequentially.
- – Nokia mobile device ASP (including services revenue) of EUR 65 in Q1 2011, up from EUR 62 in Q1 2010 and down from EUR 69 in Q4 2010.
- – Devices & Services gross margin of 29.1% in Q1 2011, down from 32.4% in Q1 2010 and 29.2% in Q4 2010.
- – Devices & Services non-IFRS operating margin of 9.8% in Q1 2011, down from 12.1% in Q1 2010 and 11.3% in Q4 2010.
- – NAVTEQ net sales of EUR 232 million in Q1 2011, up 23% year-on-year and down 25% sequentially (up 20% and down 26% at constant currency).
- – Nokia Siemens Networks net sales of EUR 3.2 billion in Q1 2011, up 17% year-on-year and down 20% sequentially (up 15% and down 21% at constant currency).
- – Nokia Siemens Networks non-IFRS operating margin of 0.1% in Q1 2011, down from 0.6% in Q1 2010 and 3.7% in Q4 2010.
- – Nokia operating cash flow of negative EUR 173 million and cash generated from operations of EUR 182 million in Q1 2011.
- – Total cash and other liquid assets of EUR 11.1 billion and net cash and other liquid assets of EUR 6.4 billion at the end of Q1 2011.
- – Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. In Q1, this was partially offset by favorable profit mix both in Devices & Services and in Nokia Siemens Networks taxes. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 0.4 Euro cents higher in Q1 2011.
STEPHEN ELOP, NOKIA CEO:
“In the first quarter, we shifted from defining our strategy to executing our strategy. On this front, I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well under way.Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance.”
NOKIA OUTLOOK
- – Nokia expects Devices & Services net sales to be between EUR 6.1 billion and EUR 6.6 billion in the second quarter 2011.
- – Nokia expects its non-IFRS operating margin in Devices & Services to be between 6% and 9% in the second quarter 2011.
- – Nokia targets its net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and targets its net sales in Devices & Services to be seasonally higher in the fourth quarter 2011, compared to the third quarter 2011.
- – Nokia targets its non-IFRS operating margin in Devices & Services to be between 6% and 9% in 2011.
- – Nokia targets to reduce Devices & Services’ non-IFRS operating expenses by EUR 1 billion for the full year 2013, compared to the full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65 billion.
- – Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 3.2 billion and EUR 3.5 billion in the second quarter 2011.
- – Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between 1% and 4% in the second quarter 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks net sales to grow faster than the market in 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks non-IFRS operating margin to be above breakeven in 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to reduce its non-IFRS annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009
- – All items relating to Nokia Siemens Networks exclude the impacts of the planned acquisition of Motorola Solutions’ network assets.
Click on for full report:
Category: Nokia
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Sites That Link to this Post
- Nokia – Microsoft seal the deal | Q1 results out | The GadgetBuff | April 21, 2011
- It’s all Elop fault right? : My Nokia Blog | May 31, 2011
i hope symbian fanboys finally see the true picture. Symbian is taking them nowhere. smartphone share down to 26 percent. They need to roll out WP& devices asap. THey are falling behind. FAST. into oblivion
Nokia sold more Symbian devices in Q1 this year than last inspite of announcing its death sentence.. That I would say is the strength..
I wonder how many Android phones or iPhones will be sold if Google or Apple did the same..
Well said sir… so many of these armchair engineers out to stab symbian.
+1
Selling more devices while your profits continue to decline is not a strength.
exactly. they were able to sell this many smartphones probably because of price-cuts. And if we take into account the facts that smartphone industry is growing at a staggering pace, nokia have been doing badly lately. their growth is relatively slow
You’re one of those that only ever reads the headlines, and never understands the underlying text?
They’ve actually increased sales of their smartphones year-on-year, yet somehow you equate that to falling behind?
The OS thats seriously trailing is WP7 – iOS, Android, Symbian and RIM have a massive leader over the also ran from Microsoft.
You’re one of those that only sees numbers and never understands what they mean.
Year-on-year their share of the smartphone market has fallen by more than a third, yet you somehow equate that to NOT falling behind?
@adnan
Here’s to hoping that the time, when I have to take your first two sentences and replace symbian with WP7, won’t materialize.
they don’t need WP7 elop wants nokia to HAVE it …….if they pushed Qt heavily and got those friggin updates out and made meego variants then this wouldn’t happen
3.8 – 4.8 inch screen w/ gorilla glass and AMOLED/CBD
800mhz – 1hgz CPU/ GPU
1500 -1900mah battery
5 – 12mp camera with dual LED/Zenon 720p – 1080p @ 25 – 30fps option/ digital – optical zoom
symbianOS anna – MeegoOS
with DLNA – HDMI out
Wifi a/g/n
10 – 15mbps Download 2 – 5mbps Upload
8 – 32gb w/ expansion slot
Anodized aluminium body w/ replaceable battery
Keyboard – touchscreen variants
FF 1 – 2mp camera
full Codecs support /music support and image support
+1
see after their symbian ditching announcement they lost 4million smartfones. now no one will buy symbian.
:’(
Where was there a loss, or do you have major problems with comprehension? What was reported was year-on-year growth – 21.5 to 24.2 million units for Q1 2010 and 2011 respectively. A 13% increase isn’t as big as some others, but considering all the “bad press” its a damn good result.
I think he is referring to Q4 2010 and Q1 2011 numbers.. Nokia had sold 28m devices in Q4 2010..
yes
Well last Q was the holiday season so it’s not unusual that they would sell less units this quarter than that one.
On the other hand, smartphones are growing like gangbusters and if Nokia’s unit sales aren’t also growing, then that’s indicative of a HUGE problem for them.
I think that this is substantially the product of (a) no compelling devices to sell and (b) announcing the veritable end of Symbian without having anything to offer in its place for 2-4 quarters. Customers see the end and they’re moving on to products that are much more compelling and are immediately available.
Nokia is going to suffer badly over the next couple quarters while the world passes them by very quickly. By the time they end up launching a WP7 device, I wouldn’t be surprised if their Smartphone sell-in was under 15% of the market.
Note also that Nokia’s smartphone ASP fell quite substantially – 6% in one quarter – a result of discounting just to move product.
Nokia has hitched its wagon to a bit player in Microsoft. By the time they get to launching a WP7 product, Nokia will itself have withered down to a bit player.
i want symbian to stay, but ui want nokia to die!
A robust performance from Nokia in YOY smartphone sphere sales considering in Q1 they didnt hv any major launches (E7 shipped in the fag end of the I qtr.)
I think the QOQ drop can be attributed to festival period purchases in Q4’10.
Hope new Symbian roll out is quick….with same stuff Nokia is clinging on….with new s/w & h/w, I m sure they will start claiming back the market & mind share.
this results is coming from nokia microsoft partnership
nokia will going to bancrupt with this aliance
You dont seem to know how fucking big Nokia is. Even if the Microsoft partnership tanks, Nokia won’t go bankrupt. And symbian devices will still be coming out up until the switch so if it doesn’t pan out they lost half a year of smartphone profits. Then they just keep pushing the old symbian phones until their MeeGo lineup is ready.
This was meant as a reply to sh but for some reason it didn’t work
News for you, if the Microsoft partnership tanks, so does Nokia.
If Windows Phone doesn’t take off with the public, and isn’t as wildly successful as Apple’s iPhone, Nokia is toast, doomed, kaput.
they still have symbian rememeber that it’s not done yet and they stated that they will keep symbian as long as it makes money which is even funnier since it is making more money then Wp7 still and it’s symbianOS(^3) i’m talking about
thats very bad
whats nokia now can do ???
Send FLOP back to Redmond?
NOKIA is screwed for GOOD
http://www.theinquirer.net/inquirer/news/2032210/microsofts-marketshare-falls-thanks-wp7
I wonder how much the announcement of Symbians death affected sales?
I know quite a few people who are Symbian users who are looking @ new devices but decided/deciding to look elsewhere as they’re unsure of how long (if at all) their devices would be supported.
I’ve been having to do a lot of “information sessions” (if you will) to let them know that Symbian will still be supported; thank goodness for that recent report that Symbian would be supported until @ least 2014
Elop really screwed things over imo by his amateurish level announcement
Their future strategy should been 50/50 meego and wp. then there would be some point for future. Current strategy goal is to be smallest smartphone manufacture in the world.