Nokia Q2 Results – Smarphone market share up to 41%

Nokia has just released their Q2 results. Click here for the press release, as well as all the data.

It’s important to note that with no new flagship until possibly the end of Q3 (and Q4 in some areas), and the continued onslaught of Android and iPhone 4, things might be expected to become worse before it finally becomes better as Nokia announces more high end handsets (*cough*E7*cough*N9*Cough*). Nokia held ground well considering it’s supposedly dead.

Some of Nokia’s Q2 highlights below.

• 111M handsets sold this quarter, up 8% from last year, 3% sequentially
• Nokia converged mobile device (smartphone and mobile computer) volumes of 24.0 million units, up 42% year-on-year and 12% sequentially.
• Smartphone Market share up to 41% (40% Q1, 39% Q4 09, 38% Q3 09)
• Nokia net sales of EUR 10.0 billion, up 1% year-on-year and 5% sequentially (down 4% and up 2% at constant currency).
• Devices & Services net sales of EUR 6.8 billion, up 3% year-on-year and 2% sequentially (down 2% and 1% at constant currency).
• Services net sales of EUR 158 million, up 7% sequentially; billings of EUR 295 million, up 29% sequentially.
• NAVTEQ non-IFRS net sales of EUR 253 million, up 71% year-on-year and 34% sequentially (up 69% and 30% at constant currency).
• Nokia mobile device ASP (including services revenue) of EUR 61, down from EUR 62 in Q1 2010.
• Devices & Services gross margin of 30.2%, down from 34.0% in Q2 2009 and 32.4% in Q1 2010.
• Devices & Services non-IFRS operating margin of 9.5%, down from 12.2% in Q2 2009 and 12.1% in Q1 2010.
• Nokia Siemens Networks net sales of EUR 3.0 billion, down 5% year-on-year and up 12% sequentially (down 11% and up 10% at constant currency).
• Nokia Siemens Networks non-IFRS operating margin of 1.7%, up from 0.1% in Q2 2009 and 0.6% in Q1 2010.
• Nokia operating cash flow of EUR 944 million.
• Total cash and other liquid assets of EUR 9.5 billion at the end of Q2 2010.
• Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately half a Euro cent higher.

Interestingly, smartphone market share is somehow up to 41% from 40% last quarter. Unfortunately, global market share is down to 34% (from 35% as the market grew 10% whilst Nokia had pretty much flat growth).

NOKIA IN JANUARY – JUNE 2010

(The following discussion is of Nokia’s reported results. Comparisons are given to the January-June 2009 results, unless otherwise indicated.)

• Nokia’s net sales increased 2% to EUR 19 525 million (EUR 19 186 million).
• Net sales of Devices & Services increased 6% to EUR 13 462 million (EUR 12 759 million).
• Net sales of NAVTEQ were EUR 441 million (EUR 279 million).
• Net sales of Nokia Siemens Networks decreased 7% to EUR 5 757 million (EUR 6 189 million) [Not including the 7billion USD deal btw)
• Operating profit increased 62% to EUR 783 million (EUR 482 million), representing an operating margin of 4.0% (2.5%).
• Operating profit in Devices & Services increased 13% to EUR 1 474 million (EUR 1 310 million), representing an operating margin of 10.9% (10.3%).
• Operating loss in NAVTEQ was EUR 158 million (loss of EUR 220 million), representing an operating margin of -35.8% (-78.9%). Operating loss in Nokia Siemens Networks was EUR 405 million (loss of EUR 549 million), representing an operating margin of -7.0% (-8.9%). Corporate Common Functions reported expense totaled EUR 53 million (EUR 59 million).

Other things:

• >1.7m daily downloads from Ovi Store (pretty good considering the current state of it, what more when Qt starts to ramp quality up?)
• 13,000 items (including apps). Hmm.
• OPK on the N8,

“In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian^3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market”

N8 will be followed SOON thereafter by more S^3 devices.

Tags: Nokia, nOKIA q2

Category: Nokia