Nokia Posts Higher Q4 Operating Profit

By Steve Smith -- TWICE, 1/28/2010

Stockholm, Sweden - Nokia reported a higher operating profit but lower net sales for the fourth quarter, ended Dec. 31, 2009.

Operating profit was 1.47 billion euros, a gain of 18.9 percent from the prior year's fourth quarter, while net sales slumped 5.3 percent to 11.9 billion euros.

Olli-Pekka Kallasvuo, Nokia's CEO, said in a prepared statement, "We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our devices and services unit, both quarter on quarter and year on year. Our solid results also owe a good deal to world-class supply-chain management and impressive sales execution. "

He added, "Our focus remains firmly on execution, especially around user experience. Here I want to highlight our move to shake up the navigation market with free walk and drive navigation on our smartphones, a good example of how we are leveraging our assets to bring real benefits to consumers."

In its devices and services unit during the fourth quarter of 2009, total mobile device volumes were 126.9 million units, representing an increase of 12 percent year on year. The overall industry mobile device volumes for the same period were 329 million units based on Nokia's estimate, representing an increase of 8 percent year on year.

Of the total industry mobile device volumes, converged mobile device industry volumes in the fourth quarter 2009 increased to 52.4 million units, based on Nokia's estimate, compared with an estimated 47 million units in the third quarter 2009.

Nokia's converged mobile device volumes, comprising smartphones and mobile computers, were 20.8 million units in the fourth quarter 2009, compared with 15.1 million units in the fourth quarter 2008 and 16.4 million units in the third quarter 2009.

Nokia's share of the converged mobile device market was an estimated 40 percent in the fourth quarter 2009, up from an estimated 35 percent in the third quarter 2009.

The company reported that North America unit sales for in the fourth quarter were 3.8 million, down 7.3 percent from the prior year's final quarter.